HARALD SEIZ:

Chief Engineer
of digital economy

5
GOLD STANDARD
AS THE FIRST
FINANCIAL CENTER
OF DIGITAL
ECONOMY

6
Duis at nibh diam. Duis viverra sed diam sollicitudin.
KARATCOIN
BANK:
Wealth as a Service

12
GOLD FIELDS
OF GUINEA

15
www.goldstandardbank.group
 C CONTENTS T
GOLD STANDARD: PROJECTS AND INITIATIVES
Harald Seiz: Chief Engineer of digital economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Gold Standard as the First Financial Center of Digital Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
KC Bank Hong Kong: Gold Asia. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

O
KaratCoin Bank: Wealth as a Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Karatbit as the Future Heart of Gold Standard . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Gold Independence Day: the gold-value circulation as a destination
of Gold Standard Progression . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Gold fields of Guinea . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

N
KaratGold Coin as a crucial point in the New History of Gold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
New Star in orbit of Gold Standard . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Mainnet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Gold Standard Payment Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

GOLD: MARKET OVERVIEW

Gold Standard and “Fort Dauphin” gold mine . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

N
Physical Gold in Digital Form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
7 things you need to know about gold in the 21st century. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
New Gold Standard . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Gold Standard as the odds-on favorite in the Contest of cryptocurrency . . . . . . . . . . . . . . . . . . . 25
The Global Market Of Gold Reserves: Why Do All Countries Buy Gold? . . . . . . . . . . . . . . . . . . . . . 26
Gold Standard’s Decisive Steps In Development Of Digital Gold Currency . . . . . . . . . . . . . . . . . . 28

T
Five Golden Rules. How to Choose a Cryptocurrency to be Happy with Your Investment . . . . . . . 30
How Does Gold Standard Influence The Price Of Physical Gold? . . . . . . . . . . . . . . . . . . . . . . . . . . 32

E
Global pivot. How will the price for gold change in the long term perspective? . . . . . . . . . . . . . . . 34

S
What will you do when you become rich? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

2 Contents 3

In a remarkable way Harald
Seiz strikes the perfect balance
between several capacities at
once - a dreamer, a visionary
and a talented entrepreneur.
The person who rediscovered
gold and foreign currency
circulation for the world and
put the idea of fair money value
into life, Harald Seiz pursues to
consistently build up a new fair
financial system.
HARALD SEIZ:
CHIEF ENGINEER
OF DIGITAL ECONOMY
«My mission is to produce the highest quality gold available in the
market, make it easily accessible to the masses of honest people
around the world at a price point everyone can afford. My goal is
help millions find financial freedom…»
Harald Seiz, the founder and CEO of Gold Standard,
has accumulated over 30 years of experience in the
financial industry. A talented economist, Harald Seiz
began his career as a financial advisor at the age
of 19. He quickly achieved success in this area and
became an independent advisor to several leading
companies in the industry.
At that time the expertise and strategic thinking
of Harald Seiz helped to grow many companies
towards success.
However, alongside with the decisiveness and
quick reaction in entrepreneurship, Harald Seiz
envisioned that financial development should be
based on stability. Furthermore, he was inspired
by the opportunity to help and improve the lives
of other people by protecting them against the
potential of financial ruin.
Looking into the theoretical basics of financial
stability, Harald Seiz realized that it can rely only
on real values and assets.
At all times the most effective way to protect
capital from continuous changes in the economy
and from crises has been gold.
Harald Seiz wrote the book “The Future of
Money: How Gold will Revolutionize our Method of
Payments” which was a bestseller.
Founder Gold Standard & Visionary Harald Seiz
In 2011 he founded Karatbars International
GmbH in Stuttgart where Harald Seiz is the
Managing Director. Since then he has been
consistently and successfully internationalizing
the business.
In 2016, he was awarded the Senatorial
Degree by the Federal Association for Economic
Development and Foreign Trade (BWA).
In 2017 and 2018, Harald Seiz supervised the
creation of a global international holding with its
main goal to build a new digital economy based on
gold and currency circulation.
Today we are on the verge of revolutionary
changes in the global economy, which were made
possible by consistent activities taken by Harald
Seiz in the past ten years to put the ideas of a fair
financial system into practice.
During this period he created all the necessary
elements of a single mechanism, required to start
gold and currency circulation.
Today, they are all integrated in a single Gold
Standard holding.
The founder and CEO of Gold Standard Harald
Seiz is the person whose vision creates a fair world
of the future where millions of people will find their
financial freedom.
Harald Seiz: Chief Engineer of digital economy 5
 the payment system secured by gold. In the first
year after the ICO phase completion, its income
will be $5 billion with subsequent increase of 25%
per year.
Among the industry leaders are also Gold
Standard exchanges backed on blockchain
technology: Karatbars Digital Stock Exchange, an
innovative trading platform aimed to work for the
huge financial industry, which is going to reach a
turnover of $3 billion in the first year (see page 10)
and Karatbit Cryptocurrency Exchange that has a
turnover of $150 billion and is planning to annually
increase this volume by 100% (see page 9).
Within recent years, Gold Standard has stablished
the most successful blockchain projects that
will form the basis of the global payment system
secured by gold. Among them is KaratGold Coin
project, which ICO has raised more than $100
million to become one of the largest in the history,
as well as the project of KaratCoin Bank that will
issue the gold-backed cryptocurrency to provide
the blockchain-based Payment System (see page
11).
Gold Standard develops a global payment system

GOLD STANDARD AS THE

FIRST FINANCIAL CENTER
OF DIGITAL ECONOMY
By the beginning of the third decade of the 21st
century, global economy has been undergoing
the most significant transformation over its
entire existence. Industry digitalization, creation
and implementation of artificial intelligence, as
well as invention and introduction of blockchain
technology are interfering into the usual economic
relations that have been evolving over the
centuries. On the basis of modern technologies,
new economic giants are growing, which yet today
form the contours of a new novel world.
Gold Standard Bank has become the most
significant global multinational holding company in
financial sector that has been setting new trends
in the blockchain sector development. Its rapid
growth is based on the understanding that the
world of the future will draw on technology and
gold. Over the past few years, it has become the
largest venture, which has implemented a number
of successful innovative blockchain projects
related to introduction and development of gold
exchange transactions.
Today, the Gold Standard system operating
in 120 countries has over 500 thousand regular
customers and 120 million euros of Gold Standard
capital, while the total number of affiliates of
all Karatbars Group projects has reached over
540,000. Above all, capitalization of its successful
ventures will be more than $1 billion within a year.
Gold Standard bridges the gap between people
and gold with successful projects rooted in gold-
value circulation. Its key projects are recognized as
the leaders in banking and blockchain fields. This
is KC Bank Hong Kong Gold Trading (see page 8)
that operates its gold mining project with annual
gold sales revenue of $600 million and KaratCoin
Bank Miami (see page 7), the world’s first Crypto
Bank, which aims to become a global bank having

6 Gold Standard as the First Financial Center of Digital Economy Gold Standard as the First Financial Center of Digital Economy 7

based on gold at an impressive pace. Not only this
holding company provides banking services but
also issues payment cards, as well as works with
ATMs, E-Wallets and the KaratPay system. With
its help any transactions, payments or purchases,
money savings and investment operations backed
by gold can these days be easily performed (see
page 12).
Globalization of proven solutions and creation
of a world blockchain-based payment system has
become a relevant objective for Gold Standard.
Rapid increase in the cost of its projects puts it at
the center of the future financial system, the basis
of which will be relations based on free circulation of
cryptocurrencies backed by gold.
In 2018, Physical Gold in Digital Form appeared.
Gold Standard has then created KCB and KBC,
cryptocurrencies secured by gold.
8 Gold Standard as the First Financial Center of Digital Economy
The next logical step will be globalization
of proven solutions and creation of a world Today, you have a
blockchain-based payment system based on a
crypto-currency backed by gold. And we know choice whether to
cling to the old order
when it will happen. Gold Standard announced
that starting from July 4, 2019 called as The Gold
Independence Day, everyone will be able to freely
exchange pure gold to KBC (see page 17). or step forward and
Entering the Gold Independence World, Gold
Standard did not stop and took the next – even conquer the world
more decisive – step. It has developed MAINNET, an
innovative blockchain, in which development Gold together with Gold
Standard nowadays invests enormous efforts and
resources. After the MAINNET project is launched Standard Bank.
(September 4, 2019), both coins – KBC and KCB
– will be transferred to personal blockchain with
full preservation of their market value. A sole coin
backed by gold and freely exchanged for gold will
then be created (see page 15).
The goals set by Gold Standard are implemented
in a clearly defined time frame. In a year, we all will
live and work in another world, the world in which
Gold Standard has given us the gold circulation
back.
Time for big changes has come: the old world
is dying, and the new daring one is coming. It’s a
time of turmoil and crises, but also time of great
opportunities.
To ensure the circulation of foreign exchange,
Gold Standard takes decisive actions aimed at
creating a gold reserve, which will allow KCB and
KBC to become the basis of gold circulation.
Therefore, if blockchain users ever decide to
exchange their KBC or KCB coins for physical
gold, they will know that gold reserve guarantees
them such a possibility.
This is the reason why Gold Standard invests in
gold mining in the most promising regions of the
planet. For instance, in the middle of 2018, the
Goldmine in Madagascar having gold reserves of
$900 million was bought (see page 13).
Guinea will become the next country to open gold
mines, where Gold Standard has received a license
to operate and develop 12 mining perimeters with
proven gold reserves of more than 200 tons in total
(see page 14).
Gold Standard as the First Financial Center of Digital Economy 9
 KC BANK The main aims of the bank are
to provide the trading flows of

HONG KONG:
physical gold, which will come from
the Gold Standard gold mines, as
well as to maintain the balance of
gold deposits that will be created to

GOLD ASIA
ensure gold-value circulation.
Conclusion of cooperation and
partnership agreements, jointly with
the opening of Gold Standard Hong
Kong headquarter significantly
contribute to increasing the level of
Being a global holding company, Gold Standard Asian integration into the emerging
carries its business internationally. world market of cryptocurrencies
Among other regions Asia remains to be one of secured by gold, whereas
the brightest and most promising places to grow. establishment of KC Bank Hong
Over the past year, Gold Standard has managed Kong Gold Trading will allow this
to establish cooperation with more than three region to become a major player in
renowned gold trading partners there. the future multi-polar global gold
According to the venture estimates, the main trading system.
capabilities are concentrated in Hong Kong,
financial center of China. This is where Gold
Standard opened its representative office and
decided to place its gold deposits (135 kg of pure
gold). Such business plan made it possible to
conclude promising agreements with top-class
gold traders on joint business activities in the Asian
gold market.
Realizing the prospects of this region, Gold
Standard went further and is currently working
on the KC Bank Hong Kong Gold Trading
establishment, which will operate its gold mining
project with annual gold sales revenue of $600
million. The venture is thinking to trade gold bars
in the daily volume of 200kg or more as a start.

10 KC Bank Hong Kong: Gold Asia KC Bank Hong Kong: Gold Asia 11
 KARATCOIN BANK:
WEALTH AS A SERVICE
Today, Gold Standard manages the most relevant
cryptocurrency backed by gold.
To ensure a serious approach to cash
management and payment system development,
KaratCoin Bank, the world’s first cryptocurrency
bank has been established in the United States.
The bank is deliberately set up in the country, which
has the most stringent financial regulation and
huge financial opportunities so that to guarantee
all backers full reliability and clear prospects of the
project development.
KaratCoin Bank is a key project of Gold Standard,
since on its basis a global gold exchange
circulation is built. The current aim of it is to set
up a bridge between conventional finance and
blockchain-based economy, which could help
the bank become a financial center of the global
cryptocurrency system.
While developing a global
system of gold-value
circulation, Gold Standard’s
plan of KaratCoin Bank
establishment was to perform
the following functions:
• circulation of cryptocurrency covered
by gold;
• rendering services of the first full
blockchain-based and cryptocurren-
cy-related bank which shall become
the core of the global cryptocurrency
banking system;
• execution of treasury functions
for the KaratGold Ecosystem and
cryptocurrencies, in particular, gold
and CashGold safekeeping.
12 KaratCoin Bank: Wealth as a Service
GOLD STANDARD MINES
Blockchain contract on
the supply of gold
Gold
THE KARATGOLD KARATCOIN
SECURITY HOUSE BANK
CashGold
50 Billion KCB Coins
KARATBIT FOUNDATION
Chart showing gold flow in the “hard structure”
of KARATCOINBANK WORLD ECOSYSTEM
The current aim of KaratCoin Bank is to
launch services that could excel the traditional
payment infrastructure in terms of convenience
and reliability, as well as provide easy access to
cryptocurrencies and investments in gold for 200
million conventional users.
KaratCoin Bank will manage blockchain-based
digitized securities, commodities and other
assets for the benefit of its customers: provide an
access to credit, debit and cash cards, manage
the Karatgold Security House due to store gold
and other assets, as well as manage blockchain-
based assets and the crypto assets portfolio.
Moreover, it will make a cryptocurrency backed by
gold the standard and mainstream currency. This
will be achieved by building up a comprehensive
environment meeting all and any user needs.
Due to these global changes and visionary
activities, the bank will be able to run the process
of conventional economy transformation and
become financial leader of a new blockchain-
based economy.
Reception of gold
Contract on
the supply of gold
GOLD SPOT MARKET
KARATBIT AS THE
Gold is bought
on Spot market
Info
FUTURE HEART OF
GOLD STANDARD
Exchanges serve as important structural
components of the modern financial world. These
are the centers that digital economy creates,
through which the future financial flows are
intended to run.
Realizing the importance of free exchange for
building a global payment system secured by gold,
Gold Standard announced the opening of KARATBIT
cryptocurrency exchange that has become
an essential tool in the global payment system
development. This service provides a link between
cryptocurrency and traditional economies, supports
direct trade of KBC, BTC and ETH into fiat money
and works as the basis, on which the gold circulation
mechanism is planned to be created.
With the help of KARATBIT, Gold Standard
guarantees that the cost of cryptocurrency will
always be fair, will correspond to supply and
demand, and that KBC holders will always be able
to convert their savings into any other assets.
Taking all things together, KARATBIT is developed
as a multifunctional platform that covers all aspects
of digital cryptocurrency system and connects
new options and services. This multi-currency,
multitasking and high-performance trading
platform is meant to be a user friendly, functional
and fully trader-oriented service. What is more, its
significant advantage is ability to accept Cashgold
via Karatpay, which enables to store gold and trade
it into cryptocurrencies.
KARATBIT is the future gold heart of Gold Standard,
through which the key financial flows will run.
KARATBIT as the Future Heart of Gold Standard 13
 GOLD INDEPENDENCE DAY:
THE GOLD-VALUE CIRCULATION AS
A DESTINATION OF GOLD STANDARD
PROGRESSION

The global payment system based on a payment system will make it possible to launch
cryptocurrency backed by gold is an efficient but the stabilizing center of the World economy.
rather complex structure. Is it possible to implement these plans in the

GOLD FIELDS
Gold Standard Bank exerts persistent efforts near future? Yes, it is.
towards consistent deployment and debugging Today there is a clear promise of Mr. Harald
of its components. Seiz, CEO and founder of Gold Standard Bank:

In general, the ideal blockchain-based
payment system is a tandem of the
cryptocurrency gold standard and financial
structure that can guarantee that the
cryptocurrency is exchangeable for gold.
Gold Standard Bank headed by visionary
Harald Seiz, has already offered solutions which
are the basis for the global gold-value circulation.
In October 2018, the holding announced the
adoption of cryptocurrency gold standard -
starting from the Gold Independence Day,
July 4th, 2019, KBC coins can be exchanged
for pure physical gold. It is guaranteed that 100
KBC can be exchanged for one gram of gold.
The blockchain economy, based on the
cryptocurrency gold standard, will have a fixed
exchange rate and the owner of one hundred
thousand KBC will be able to exchange them for
1 kilogram of pure gold.
At the same time, Gold Standard Bank
announced the opening of the KARATBIT
cryptocurrency exchange supporting the
liquidity of gold-backed cryptocurrencies.
These steps are the essence of Gold Standard
Bank’s strategy, which makes it the global leader
in the blockchain revolution.
Efficient and successful completion of the
mission to create the global blockchain-based
OF GUINEA
“I guarantee everyone, that they will receive 1g
gold for 100 KBC each on Independence Day
(July 4, 2019)”.
As it has been proven during the years of the
gold holding development, the only thing that
Gold Standard Bank values higher than gold is its
word given to backers. If you take a scrupulous
and close look at the history of the project, you
will find that all its promises are fulfilled in a timely
and very consistent manner.
Gold Standard applies a very selective and
professional approach to the choice of investment
objects, understanding the importance of the
mission it implements.
After the successful purchase of “Fort Dauphin”
gold mine at Madagascar, based on a careful
preliminary analysis, it was decided that the next
country where Gold Standard would open its mines
is Guinea.
Guinea offer excellent investment climate, low
taxes and huge reserves of gold.
The north of the country is known for the so-called
goldore belt of Faleme which includes a number of
rich gold deposits and welcome arranging efficient
gold mining.
Gold Standard has obtained a license to operate
and develop 12 mining perimeters in Guinea, with
proven gold reserves totaling more than 200 tons.
Taking into account 700 tons of explored
reserves in the country, Gold Standard Bank will
control more than a quarter of the gold-bearing
regions of the Republic of Guinea.
The efforts and investments made by Gold
Standard Bank have a significant impact on the
development of the regional economy, that is why
this project has won the support of the state and
his excellency Prime Minister of the Republic of
Guinea Ibrahima Kassory Fofana.
Gold Standard is focused on the long-term
perspective and plans to manifold increase its gold
production in the Republic of Guinea; therefore it
has initially obtained a long term mining permit for
up to 20 years.
Using advanced technologies and an open
mining method, Gold Standard plans to significantly
increase the efficiency of gold mining.
The long-term strategy will make Gold Standard
a leader in gold mining in the region and will
contribute significantly to the development of the
economy of the Republic of Guinea.

14 Gold Independence Day: the gold-value circulation as a destination of Gold Standard Progression Gold fields of Guinea 15
 KARATGOLD COIN
AS A CRUCIAL POINT
IN THE NEW
HISTORY
OF GOLD
This year, Gold Standard has made the most
significant step in shaping the New History of Gold.
Having entered the market with the idea of gold-
backed cryptocurrency, Gold Standard completed
one of the most successful ICOs in history.
KaratGold Coin ICO has been raised $100 million,
which confirms the fact that nothing is as reliable and
prosperity-guaranteed as gold.
Why did the ideas of the Gold Standard turn out to
be so wanted and timely?
Karatgold Coin project has a specific feature which
sharply distinguishes it from other innovative startups
of 2018 – it is not limited solely to internal problems
of cryptocurrency community.
In fact, Karatgold Coin solves the issues faced
by the conventional economy and global monetary
system.
Karatgold Coin is a concept of the future that has
already come true.
Today, numerous analytical reports of supranational
financial institutions highlight several global
problems of the current world monetary system.
Their elimination is the primary aim of Karatgold Coin
reformers.
The first and most important problem emphasized
by virtually all experts is that the modern world
monetary system does not reflect a real situation in
the world economy.
The notable and fast-paced development of
16 KaratGold Coin as a crucial point in the New History of Gold
regional economies is hampered by the weakness of
their own locally limited currency systems. Expansion
of KBC and KCB cryptocurrencies backed by gold
includes global market mechanisms, which allow
capital and commodity flows to move faster and
increase the efficiency of the global economy.
The second problem of the global monetary
system is the growth of global instability that causes
an increasing number of financial crises, volatility in
key markets and accumulation of imbalances.
Introduction of gold-backed KBC cryptocurrency
independent of the central government will help
stabilize the global payment system and balance
commodity-cash flows.
The third critical problem is economically
unreasonable privileges of dollar that is currently
used as a calculated currency.
The net annual U.S. gain from the dominance of
dollar as a reserve currency varies from $50 billion
in stable years to $150 billion in times of financial
crises.
Today it has become evident that it is necessary
to diversify international currency payments through
creation of a supranational cryptocurrency based on
gold as the generally accepted equivalent.
Understanding how important it is to solve these
problems, Gold Standard continues to rapidly
develop a world blockchain-based payment system
that uses cryptocurrency secured by gold.
NEW STAR IN
ORBIT OF GOLD
STANDARD
The Karatbars Digital Stock Exchange will be a
New Star in orbit of Gold Standard.
Karatbars Digital Stock Exchange is a hybrid
blockchain platform where shares of small and
medium-sized businesses will be cryptonized in
order to be traded.
The disruptive idea of Gold Standard will save
entities the trouble of repeatedly going through the
expensive listing procedure on each exchange in
New York, London and Frankfurt. Digitized shares
of any business from anywhere in the world will be
listed on one place.
Gold Standard makes it possible with the
blockchain technology.
Gold Standard was prompted to set up a digital
stock exchange by its high awareness of today’s
difficult situation, when conventional stock markets
are congested with numerous intermediaries who
intervene between bidders, thus increasing costs
and reducing efficiency.
Due to Gold Standard’s developments based on
blockchain, the number of intermediaries will be
significantly reduced, opening access to global
capital for small and medium businesses.
The Karatbars Digital Stock Exchange is a hi-
tech, user-friendly platform where digitized shares
of businesses from the furthest corners of the
world will circulate without any restrictions and
limitations.
Gold Standard reviewed and corrected the key
deficiencies and faults of conventional stock
exchanges. The Karatbars Digital Stock Exchange
will ensure direct interaction between buyers and
sellers, making the transaction costs negligible.
The stability and security of the platform is
guaranteed by blockchain technology.
As a result, by the aid of Gold Standard the whole
world will be enabled to enter the stock exchange,
thus greatly facilitating the movement of capital
and reviving the economy of many countries.
New Star in orbit of Gold Standard 17
 MAINNET GOLD STANDARD
PAYMENT SERVICES
One of the paramount goals of Gold Standard is to create services that will excel the conventional payment
infrastructure in terms of convenience and reliability and provide two hundred million users with easy access
to the use of cryptocurrencies and investing in gold.

At a certain stage of development public services

can no longer fit the scale of activity of a global
corporation.
Gold Standard, the development rate of which
outstrips the most daring forecasts, appears
acutely aware of the fact that in the near future the
public blockchain will turn into an obstacle to the
fast-paced development of financial services.
In addition, in the long term, lack of control and
the ability to effect anonymous transactions will
impede the effective integration of Gold Standard
services into the global mechanism of economy.
Gold Standard chose to develop its own
blockchain with the code name of MAINNET.
The MAINNET is an innovative blockchain, in the
development of which Gold Standard is investing
huge efforts and resources at present.
After the MAINNET release, which is scheduled
for 4th September 2019, both coins - KBC and By now Gold Standard has built up a payment The APIs for the technical integration of
KCB will be transferred to their own blockchain with system that will be a platform for global gold-value merchants and servicers enable quick expansion
their market value protected. A single coin will be exchange. of the mobile application use. Therefore, shops
created, backed by gold and freely exchangeable Through this gateway, payments will be and online shops as well as service providers
for gold. processed with cryptocurrency, physical gold, fiat, can be connected and accept payments with
Initially, the MAINNET is developed for the future proprietary ATM machines or credit card. The fees CashGold.
and is designed to connect hundreds of millions of charged by the service are very small, which makes The mobile application has become a part of
users around the world. our solution advantageous compared to others in the safest system of exchange and payment
Development of own blockchain became the the market. Payments, conversions, redeems and worldwide – Cashgold, the new means of payment
base platform for innovations used by Gold withdrawals can be effected within seconds. and exchange.
Standard to develop a global financial ecosystem. One of the most significant links of KaratGold As all KaratGold products, the application
Gold Standard is developed as a secure tool gold chain is a mobile application that has now supports the most advanced security standards.
based on which a cost-effective and absolutely allowed instant and safe access to the payment Today, it is obvious that Gold Standard invests
transparent financial network will be built. The system KaratPay. big money not only in gold but also in technologies:
MAINNET will be the base for the global financial KaratPay is an actively functioning payment anyone who understands the importance of
ecosystem of Gold Standard, the blockchain will system that facilitates payments covered by gold. developments in digital space can evaluate the
integrate it into a whole. KaratPay accounts can be credited and used for highest level of technology and security of the
payments either online, or at the different points of financial services.
acceptance.

18 MAINNET Gold Standard Payment Services 19

 GOLD STANDARD
AND “FORT DAUPHIN”
GOLD MINE
Even in the modern pragmatic world, gold mining
remains an adventure-like business.
However, only a visionary look into the future
makes it possible to see the real serious prospects
of investing in gold mines.
Global instability and gold prices, which have
been held back for years, make investing in gold
mines the key to the future fast-paced development
of Gold Standard.
Less than a year ago, Gold Standard’s creation
of gold-backed cryptocurrencies was a real
breakthrough in gold-value circulation.
To ensure free conversion, Gold Standard takes
decisive actions intended to create a gold reserve.
This will make KCB and KBC the basis of gold
circulation. Therefore, if blockchain users ever
decide to exchange their KBC or KCB coins for
physical gold, they will know that gold reserve
guarantees them such a possibility.
That is why Gold Standard chose to invest in gold
mining in the most promising regions of the planet.
After a careful market assessment and
20 Gold Standard and “Fort Dauphin” gold mine
preparation of an expert opinion on proven gold
reserves, Gold Standard bought “Fort Dauphin”
gold mine at Madagascar.
As confirmed by the economic evaluation,
prepared by independent experts, the mine has
deposits of gold, silver and copper.
The gold deposit after detailed examination
is 22,987.41 kg, the silver deposit amounts to
36.241,41 kg.
It was decided that all gold in the mine would
be mined by Gold Standard and applied to secure
KBC and KCB.
Just a few months after the purchase, the first
deposit of 135 kg of pure gold was made.
The success of the project allowed Gold Standard
to almost immediately proceed with assessing the
effectiveness of the purchase of the next gold
mine to expand gold production.
The flourishing of gold mining enables Gold
Standard to provide a solid foundation for building
up a global payment system based on the gold
mined in African mines.
PHYSICAL GOLD
IN DIGITAL FORM
After blockchain was introduced, when it became
clear that money can be transferred as freely as
information, the Gold Standard team realized that
this technology will make such a revolution in the
financial world as the Internet made not long ago in
the information dissemination environment.
Tomorrow it would be impossible to think
of something connected with money without
blockchain and cryptocurrencies. Paying bills,
shopping, getting salaries and wages, your
savings and investments will be based on block-
chain technology.
But although the question “How to transfer
money via the Internet?” was answered, the
question “How to ensure value and reliability of
transferred money?” still remains open.
Cryptocurrencies come and go, their value
grows and falls, which in fact prevents their rapid
integration into real economic relations.
The solution turned out to be quite obvious and
reliable just as blockchain itself. Gold Standard
created the KaratGold Coin project and as a part of it
issued a cryptocurrency covered by physical gold.
The main idea on which a new KBC cryptocurrency
stands is very simple: money secured by gold is
better than money secured by nothing.
In 2018, Physical Gold in Digital Form appeared.
The KaratGold Coin is a blockchain-based
cryptocurrency specifically designed to be used
as a generally accepted electronic payment.
This coin is linked to physically deposited gold
in the form of the so-called CashGold, a true gold
standard. A certain number of KaratGold Coins
can be exchanged for the corresponding amount
of CashGold at any time.
At the same time Gold Standard developed
operating mechanisms that will allow owners,
retailers and governments all around the Globe
to use the modern blockchain-based currency
covered by gold.
The next logical step was globalization of the
proven solutions and creating a world blockchain-
based payment system based on a crypto-
currency backed by gold.
The existing global payment system, which is
controlled by banks and governments, solves
problems of financial megastructures and the state
but not of its users. For users, it remains inefficient,
fragmented, slow and expensive to maintain.
In a few years, when making quick and cheap
global transactions within the gold value payment
system created by Gold Standard it will be difficult
to believe that people could exchange pieces of
paper and took a word of financial corporations
secured by nothing. Since by that time blockchain
will have been fully based on gold.
Physical Gold in Digital Form 21
 7 THINGS
YOU NEED TO KNOW ABOUT
GOLD IN THE 21ST CENTURY
5 Nowadays the rate
1 According to The major amount is held by Central Banks, as private
the World Gold
investments and jewelry. With an average spot price of $1,225
per ounce, the value of the global gold reserve can be estimated
Council, world at $7.7 trillion.
gold holdings Is this a lot or a little? To compare, the total value of all banknotes
and coins issued in the world is $7.6 trillion. Thus, behind every
make 187,200 dollar or euro that you have ever held in your hands there is gold with
tons. a higher value.
2 The world’s
6
The United States of America is the custodian of the largest
gold reserves in the world. It owns 8,133 tons of gold, which is
major economies 74.5% of their reserve assets. Germany comes the second in the
believe in gold world and the first in Europe and owns 3,370 thousand tons of
gold, which is 69.9% of reserve assets of this country.
more than in any The other top ten countries with the largest gold reserves
other reserve are: China, Russia, Japan, Switzerland, Italy, France, the
currencies. Netherlands and India.
3 Gold has gained Beginning from 2010, the Central Banks all over the world
7
have turned from net gold sellers into net gold buyers. In 2017,
increasing their activity increased by 36% and amounted to 366 tons of
credibility from net purchase, which is a significant increase since 2016.
Central Banks Last year, the gross sales in the official sector fell to the
lowest level since 2014 by 55%, which resulted in the fact that
over the past the holders ceased to sell the available gold.
decade. The current 2018 year has become the year of the strongest
demand for gold by Central Banks. According to the World Gold
Council, in the first quarter of 2018 such demand increased by
42% compared to the same period of the previous year, and
the net demand was 116.5 tons.
This indicates that Central Banks foresee a sharp rise in the value
of gold, which historically is considered as a safe haven asset.
22 7 things you need to know about gold in the 21st century
4 Gold gains As the global debt continues to grow and the global economy
becomes more unstable, individual investors are actively
increasing investing in gold, which has historically proved itself in times
credibility with of economic decline and geopolitical uncertainty.
professional The current situation is obvious for professional investors,
who give gold an increasing share in their portfolios. According
investors.
to the World Gold Council, the annual volume of gold bought
by investors has increased by no less than 235% over the past
three decades.
of gold is in large
A case in point is the “Dodd-Frank Wall Street Reform and
Consumer Protection Act”, which directly restricted the right of
residents to trade precious metals, including gold.
part artificially held However, due to regulatory restrictions, the investment
back by adopting potential of gold has remained the same; it is being artificially
held back, and preferences are given to unsecured fiat money,
regulations since fiat money is what the most countries of the world base
affecting its price. their debt-built economy on.
Financial bubble of unsecured fiat money definitely cannot
grow for long. What will happen if its bursts? The answer is
obvious: there will be a sharp depreciation of fiat money and
need in such assets that have real value, primarily in gold.
In the 21st Traditionally gold as an investment tool has several forms -
century the best
gold bars, investment gold coins and gold sand. In different
countries the purchase of gold is subject to various taxes,
investments are including the value-added tax.
gold-covered Thus, taxes artificially reduce the investment attractiveness
of gold and reduce the effective rate of return.
assets. Consequently, the best investments are those that are
allocated to assets secured by gold and possess all the
advantages of metal gold.
In the 21st In 2018, Gold Standard developed a cryptocurrency
secured by physical gold. Having a gold equivalent KBC may
century Gold be used both as an investment tool and a blockchain-based
Standard created cryptocurrency specifically designed to be used as a generally
accepted digital payment.
Physical Gold in Being physically linked to gold, the new cryptocurrency
Digital Form. is also a liquid payment instrument, which allows making
prompt necessary payments while maintaining the reliability
of investments.
By means of technological innovations in the 21st century
gold has not only strengthened its position in the global
economy but has also acquired new forms that allowed it to
confidently enter the digital future.
7 things you need to know about gold in the 21st century 23
 NEW GOLD STANDARD
Gold Standard Bank has become a visionary entity the creation of which was pre-determined by the
current stage of the human financial history development.
Today, the global horizon is overclouded by clearly visible unregulated risks which will bring forth financial
crises of an ever-increasing scale.
The first among such risks is the world-breaker level of the Total Global Debt, which began to grow at an
exponential rate after the removal of the gold standard. According to the Institute of International Finance
(IIF), in 2017 the level of the Global Debt reached a huge amount of 217 trillion dollars - this is 327 percent
of the world’s gross domestic product.

Total Global Debt Stands at All-Time High

In Trillions of Dollars, First Quarter of Each Year
GOLD STANDARD AS
$60
Total Credit Market Debt Owed THE ODDS-ON FAVORITE
IN THE CONTEST OF
U.S. Nominal GDP
$50

$40
CRYPTOCURRENCY
$30

$20
Gold Standard Ended
$10
$0
1952 1957 1962 1967 1972
Sourse: Bank of America Merrill Lynch Global Investment Strategy, Federal Reserve, DataStream, U.S. Global Investors
This debt poses a huge risk by creating a global
financial “bubble” the collapse of which will result
in a crisis of truly biblical proportions and complete
devaluation of fiat money.
According to Alan Greenspan, an American
economist who served as Chair of the Federal
Reserve of the United States for 18 years: “If
the gold standard were in place today, we would
not have reached the situation in which we now
find ourselves. We cannot afford to spend on the
infrastructure in the way that we should. The US
sorely needs it, and it would pay for itself eventually
in the form of a better economic environment”.
Though it is unlikely that the gold standard will be
introduced in the world’s leading economies. But the
cryptocurrency world, which today is in the lead of
1977 1982 1987 1992 1997 2002 2007 2012
both technological progress and economic progress,
is one step ahead of the conventional economy.
In 2018 a New Golden Standard based on the
blockchain technology was created. Gold Standard
Bank, together with the KaratGold Ecosystem, has
developed a global solution connected to gold.
The idea for the creation and establishment of
KBC and KCB - cryptocurrencies backed by gold,
was to set up a counterpoint to the unstable global
payment system.
Now KBC is the most relevant cryptocurrency
backed by gold.
In general, there only remains to support the
opinion of Alan Grispen, who clearly stated:
“Investment in gold now is insurance. It’s not for
short-term gain, but for long-term protection”.
The conception and forms of money have
changed many times throughout the history. Gold
replaced barter system, whereas fiat paper money
replaced gold. Cryptocurrencies are a new stage
of evolution.
Each step in the money history was accompanied
by desperate competition in the form of different
approaches to understanding the new round of its
development.
Money was made from shells, stones, teeth of
animals and feathers, until many thousands of
years ago these goods were replaced by gold in
the form of coins.
Coins were later replaced by paper money
that was issued under government guarantees,
liabilities of private banks and even individuals.
Then they were driven out by banknotes secured
by gold.
Today’s new stage in money development is
accompanied by uprising of thousands of different
cryptocurrencies competing for the right to take
their place in the global exchange and to become
a universal equivalent.
Will the world history repeat itself once again,
and will the cryptocurrency covered by gold win
this competition?
Even now when someone wants to emphasize
the importance of some cryptocurrency, bitcoin,
for example, it is called “digital gold”. But at
present bitcoin technologically lags behind the
new generation of cryptocurrencies.
Gold Standard has offered a solution with
obvious advantages. It issued a cryptocurrency
secured by physical gold. Having a gold equivalent,
the KaratGold Coin combines advantages of
cryptocurrency and the reliability of metal proven
by millennia of human history.
Being, in fact, a digital gold, the KaratGold
Coin is at the same time a blockchain-based
cryptocurrency specifically designed to be used
as a generally accepted electronic payment. The
new cryptocurrency physically backed by gold
is also a high-tech product, originally created to
provide commodity turnover globally.
Will the world history repeat itself? Will true
gold value vested in the Karat Gold Coin win over
hundreds of unsecured cryptocurrencies? Yes,
gold will win.

24 New Gold Standard Gold Standard as the odds-on favorite in the Contest of cryptocurrency 25
 Thus, the largest economies in the world, which own investments in gold-backed assets to take
are issuers of fiat money, believe in gold more than necessary actions.
in their own reserve currencies. With reference to the long-term trend of
The United States of America, which actually gold appreciation Gold Standard created
imposes the dollar as a means of settlement through cryptocurrencies backed by gold and in this way
political and economic pressure, owns the largest enabled the most far-sighted investors to acquire
gold reserves in the world. The gold reserves of the assets which are the basis of a full-fledged gold
United States are 8,133 tons, which is 74.5% of their circulation.
gold and foreign exchange reserves.
Germany owns gold in the amount of 3,370
thousand tons, which is 69.9% of the gold and
foreign exchange reserves of this country.
France keeps 2,436 tons of gold in its gold and
foreign exchange reserves, which accounts for
58.5% of its gold and foreign exchange reserves.
The desire of Central Banks to provide

THE GLOBAL MARKET OF themselves with gold has been growing over the
past decade. Knowing the ropes of the situation,

GOLD RESERVES: WHY DO ALL Central Banks worldwide have become net buyers
instead of net sellers of gold.

COUNTRIES BUY GOLD? In 2017, the growth in the volume of gold

purchased by Central Banks increased by
36 percent and amounted to 366 tons of net
purchase, despite the fact that sales decreased by
The paradox of the modern world is that despite of the leading countries abandoned the national
55 percent to the lowest level since 2014. In the
the exit from the Gold Standard used to back currency gold coverage, the very fact of possessing
current situation, no one wants to sell their gold.
the money turnover, the overwhelming majority gold instills confidence in the ability to pay bills.
It is planned that the next 2019 year will be the
of developed countries still keep most of their The table below shows countries with the largest
year of maximum demand for gold from Central
reserves in monetary gold.
Thus, in spite of the fact that the governments
gold reserves in tons according to the World Gold
Council.
Banks. According to the World Gold Council, in
2018, the demand for gold has increased by 42
Central Banks
percent, while net demand in the first quarter only
amounted to 116.5 tons.
foresee a
Country / Organization 2018 Share in %
1 United States 8,133.5 73.5
Central Banks foresee a dramatic rise in the
value of gold and consistently convert their fiat
dramatic rise
2 Germany 3,369.8 68.9 assets into precious metal.
In 2018 Russia has been actively buying gold.
in the value
3 IMF 2,814.0
4 Italy 2,451.8 65.3
China has created the first exchanges where
commodities will be traded without the participation
of gold and
5
6
France
Russia
2,436.0
1,998.5
58.5
16.8
of the dollar, thus also significantly increasing the
demand for gold. The Central Banks of India, consistently
7 China 1,842.6 2.2
Turkey, Brazil, Kazakhstan and other developing
countries behave in the similar way. convert their
8
9
Switzerland
Japan
1,040.0
765.2
5.0
2.4
They are actively buying gold, taking advantage
of a period of low prices, which is obviously coming fiat assets into
10 Netherlands 612.5 65.9
to an end.
The situation on the global market of gold precious metal.
reserves is crystal clear and sends a message
Gold reserves of countries in tons and their share in total national reserves in percent (according to the World Gold
to private investors actively increasing their
Council as of October 2018)

26 The Global Market Of Gold Reserves: Why Do All Countries Buy Gold? The Global Market Of Gold Reserves: Why Do All Countries Buy Gold? 27
 GOLD
STANDARD’S
DECISIVE
STEPS IN
DEVELOPMENT
OF DIGITAL
GOLD
CURRENCY
The reasonable review shows that global
transformations implemented by Gold Standard as
part of its visionary mission require consistent and
large-scale actions.
Therefore, Gold Standard consistently
accomplishes the key objectives that will ensure
achieving their goals.
Gold Standard sets and completes goals and
objectives in two interrelated strategic areas of
activity at the same time.
The first is associated with the development of
blockchain infrastructure and will enable users
to use gold-backed cryptocurrencies with most
comfort and at best value.
The second area is conditioned by creation and
development of a global payment system, which
will become the basis of the gold and foreign
currency circulation.
Let’s take a look at how Gold Standard builds
the infrastructure and develops a global payment
system based on gold.
To create the infrastructure based on which
gold-backed cryptocurrencies will circulate it is
required, first of all, to provide a link to conventional
economy and fiat money. This objective was
attained by establishing KaratCoin Bank in the
USA, the first licensed cryptocurrency bank in the
world.
28 Gold Standard’s Decisive Steps In Development Of Digital Gold Currency
the opening of the official KaratBit Exchange.
Provision of full-scale banking services and
will make it a cryptocurrency preferred for use in
blockchain transactions and will eventually drive
release of a payment card are underway. Access most cryptocurrencies out of the market. The KBC
to ATMs, eWallets and the KaratPay system is
provided worldwide.
value will grow as its infrastructure grows and the
payment system develops.
All these impressive steps were taken by Gold
Standard during 2018.
Secondly, the decisive and determinant step
to be taken is making the MAINNET available for
The creation of a global payment system based
on circulation of gold-backed cryptocurrencies
the public, an innovative blockchain where Gold
Standard is extensively investing its efforts and
will constitute the next stage of its development. resources today.
What steps is Gold Standard taking at the Thirdly, Gold Standard continues developing its
moment to accomplish this visionary mission? payment system in a quick manner being faced
Firstly, in 2019, KBC and KCB cryptocurrencies
will be tightly tied to gold. Starting from the Gold
with a global aim. Based on KaratCoin Bank a global
blockchain-based cryptocurrency system backed
Independence Day, everyone will be able to
exchange pure gold for KBC.
by gold is being built up. To arrive at this goal the
KaratCoin Bank has developed mechanisms that
The global cryptocurrency market will welcome
the first coin that has a stable value that is tied to
will enable owners, retailers, and governments
around the world to use the innovative blockchain-
gold and easily exchangeable from KBC to gold based currency covered by gold. A blockchain-
through Karatbars’ KaratBit exchange. based World Central Bank issuing a Stable Coin
The stable value offered by KBC to the market will be established.
Upon completion of the ICO held by KaratCoin
Bank, it will become the international settlement
center, linking the conventional economy and gold A clear understanding
and foreign currency circulation based on KBC
of the final goal,
and KCB cryptocurrencies.
Secondly, Gold Standard was required to ensure consistency in
gold coverage of the cryptocurrency created.
For this purpose, Gold Standard acquired and
implementation of the
went on to exploit the gold mine “Fort Dauphin” in planned decisive steps
Madagascar. All the gold of the mine, evaluated by
auditors at 1.2 billion dollars, will be extracted and in development of the
used to cover KBC и KCB. digital gold currency will
To follow up the success of “Fort Dauphin” Gold
Standard decided to invest in the gold fields of the empower Gold Standard
Republic of Guinea, where it obtained a permit
to become a financial
mine gold totaling more than 200 tons.
The third area of activity was the development of center of a new digital
the digital infrastructure required to ensure user-
friendly and easy access to KBC and KCB. This
economy.
area was marked by implementation of several
projects at once, including the development of the
KaratGold Coin mobile application, which provides
access to the gold-covered payment system, and
Gold Standard’s Decisive Steps In Development Of Digital Gold Currency 29
 FIVE Rule three. Rule four.
GOLDEN Consider the prospects of the project. Current Functionality of the token. How can the token

RULES project activities and plans for the near future will
directly affect the value of the crypto currency it is
based on.
in which you plan to invest be applied in addition
to exchange trading? Karatgold Coin (KBC) is a
gold-backed means of payment. Merchants and

HOW TO CHOOSE A Having completed one of the most successful

ICOs in history and having collected more than
online shops as well as service providers can be
connected and accept payments with CashGold.

CRYPTOCURRENCY $100 million in the Karat Coin project (KBC),

Gold Standard has already bought a goldmine in
TO BE HAPPY WITH Madagascar with gold reserves of $1.2 billion and
obtained the license to mine 200 tons of gold in the
YOUR INVESTMENT Republic of Guinea.
Based on its own KaratCoin Bank and payment
system, Gold Standard is confidently moving
towards its target of $1 billion market capitalization.
Gold Standard, being a global financial holding, takes a very conservative approach to building its assets
and taking investment decisions. Within the strategy of a global corporation it is also required to make a very
You can buy goods and pay for services with the
gold-backed cryptocurrency.
If at any time you choose not to sell your bought
KBC on the exchange or to use KBC to pay for
goods and services - you will simply exchange
them for gold ingots that will be delivered right
to your door. Thus, in addition to being able to
use KBC as a speculative instrument or a means
of payment, you can make use of its investment
potential.

careful and informed choice of cryptocurrency assets to hold with maximum benefit. In the newborn world
of crypto-currencies the classic problems of the investor are multiplied by the enormous speed at which
projects develop and the lack of a long-standing history. The situation is strained by almost 80% drop in the
cryptocurrency market in 2018.
However, even in this sensitive situation, investments in cryptocurrencies remain one of the most profitable
areas of investment when reasonable approach is applied. Let’s take Karatgold Coin (KBC) to illustrate the
criteria which a cryptocurrency project should meet to be a well-informed choice of a subject of investing
activities.
Rule five.
A cryptocurrency should be well perceived in the cryptocurrency community and have a confident position
on exchanges. It should show good trade and growth volumes and rates; the project should be approved of
and voted for by independent analysts and experts.
When describing Karatgold Coin it is better to give the floor to independent experts from livecoindata.
com: “Will the Karatgold Coin price increase? Yes the Karatgold Coin price will increase long-term. As time
goes on and the Karatgold Coin technology evolves and Karatgold Coin is adopted more into everyday life
for people. We think that the Karatgold Coin price will surely increase and therefore Karatgold Coin could be
a great investment option for you”.

Rule one. Rule two. Adhere to the five golden rules for choosing a cryptocurrency and your investments will be as effective as
Gold Standard’s investments.

Before you make your first investment, you should carefully
examine the project that is behind the cryptocurrency.
You should get a clear understanding that it is not a bubble
wrapped in a beautiful marketing cover. The cryptocurrency
should be supported by an enterprise with real assets,
successful projects and a history of at least several years of
flawless operation.
Thus Karatgold Coin (KBC) was created by one of the
most successful enterprises of Gold Standard - Karatbars
International GmbH, Stuttgart, which since 2011 has been
providing physical gold assets to a customer base of over half
a million customers. In 2018 KaratCoin Bank, the World’s first
cryptocurrency bank was established in the United States, the
country which has the most stringent financial regulation and
huge financial opportunities.
In the cryptocurrency world only one of a hundred projects
can boast of such a background, at best; Gold Standard here
is an exception rather than a rule.
By investing in a crypto currency, you
invest in the economy or technology
behind the project. You should take
into account the fundamental reasons
for the growth of the chosen industry,
carry out your own analysis and
understand the situation and dynamics
of this industry in the conventional
economy.
Thus having offered the market
a crypto currency backed by gold,
Karatgold Coin presented a product
that is in great demand in the fiat
world - stability and predictability of
the payment system. Recent global
financial crises and a huge Total Global
Debt prompt to invest in time-proven
assets.

30 Five Golden Rules Five Golden Rules 31

 HOW DOES GOLD STANDARD
INFLUENCE THE PRICE OF
PHYSICAL GOLD?
Exploring the factors affecting the price of gold,
experts note that today we witness the emergence
of a new global factor, which is becoming dominant
in the forecasts of the long-term trend of gold
value change. This factor is blockchain technology
and gold-backed cryptocurrency created by Gold
Standard.
Let’s analyze the mechanism of such influence
and determine why the blockchain will contribute
to the rapid rise in gold prices in the near future.
The price of gold depends on supply and
demand, but it is also affected by many other
factors.
To ensure a global circulation of gold-backed
cryptocurrencies Gold Standard is taking steps
that have a direct impact on the market.
Karatgold Coin and KaratCoin Bank, established
by the financial holding, generate a powerful
additional demand for gold deposited to cover
32 How Does Gold Standard Influence The Price Of Physical Gold?
the cryptocurrency. At the same time, gold mined
from Gold Standard’s gold mines in Madagascar
and Guinea to provide gold coverage for KBC and
KCB is not in the market, thus reducing supply and
increasing prices.
Gold Standard’s cryptocurrencies will become
directly tied to gold and freely convertible into each
other from July 4, 2019 after the announced Gold
Independence Day, thus significantly expanding
the areas of demand for KBC and KCB. This
means that the turnover and application of these
cryptocurrencies will be increasing and expanding,
requiring more and more gold to ensure gold
coverage.
The factors of indirect influence will be as follows:
the expected profitability and the growing risks of
fiat investment instruments, legal restrictions on
gold circulation, availability of monetary gold and
its functional applicability.
Let’s consistently explore
these factors.
The fiat investment yields have been tending
towards zero for many years which is caused by
financial policies of the largest economies in the
world. The supply of fiat money is going up and
the interest it is loaned at is going down. This
is explained by the fact that the conventional
financial model has run out of steam and is unable
to find decent ways for economic development,
thus generating global instability.
In times of crisis, gold has always acquired
the status of a safe and reliable asset, attracting
investors and increasing in value.
The second factor is serious legal restrictions
by which financial authorities hold back the price
of gold. Thus the US “The Dodd–Frank Wall Street
Reform and Consumer Protection Act” directly
limited the right to trade in precious metals,
including gold. Thus, the visionary mission
However, digital gold in the form of KBC and
KCB cryptocurrencies is in free circulation, is not which is consistently
controlled by the government and is not dependent
on the decisions of financial corporations.
implemented by Gold
Standard calls into being
The third factor is the demand for gold as a
payment instrument, including in physical form. several fundamental
The global economy requires huge amounts of
this metal to cover trade. This significantly and reasons that are
seriously affects the value of gold and determines
the demand for gold-backed cryptocurrencies. already contributing to
transformation of gold into
a global reference and
have an impact on its value
How Does Gold Standard Influence The Price Of Physical Gold? 33
 GLOBAL PIVOT. HOW WILL
Even a slight fluctuation of the reserve currency will be enough to cause a global panic, as today there is
a general understanding of how much the dollar supply exceeds its backing. In the longer term, a weaker

THE PRICE FOR GOLD

dollar will result in a natural increase in gold.

CHANGE IN THE LONG TERM
PERSPECTIVE?
Today we can clearly see the global factors that are behind the long-term changes in the price for gold.
Over the recent years we have been witnessing a struggle of two main reserve assets - the US dollar and
monetary gold, for the dominance as universal money. Let’s look at this clash through the prism of global
processes under way in the modern world.
2. The second global factor is the stock market bubble.
All the key global markets show the largest drop in the prices of securities in the recent years. According
to analytical reports, shares of NASDAQ, S&P indices and of the vast majority of multinational corporations
are captured in the next “bubble”. The destruction of such stock exchange “bubbles” always causes large-
scale financial losses.
NASDAQ

6.938,98
1. The most powerful process, pushing gold prices up in the long 6.000,00

run, is the increasing instability of the dollar and other reserve

currencies. 4.000,00

With the growth of the total debt, internal political conflicts and external pressure from the multipolar world,
the USA is losing its position as a global guarantor. 2.000,00
The $21.6 trillion (21 600 000 000 000 USD) astronomical bubble of public debt is beginning to fizzle out.

0,00

20
-2.000,00

Jan 1, 1985 Jan 1, 1990 Jan 1, 1995 Jan 1, 2000 Jan 1, 2005 Jan 1, 2010 Jan 1, 2015

Source: investing.com/indices/nasdaq-composite
15
Trillions of dollars ($)

The main difference between securities and gold is that there are no issuer risks in the latter case. Unlike
corporations and governments, gold cannot go bankrupt or deceive willfully. That is why the stock market
decline increases the demand for gold bars and gold mining company shares.
10

3. Gold prices are at a medium-term minimum and are beginning

5 to grow.
Today, gold is traded at about $ 1,220 per ounce, which does not seem to be a low price at all. However,
if we compare the price of gold with the current record values of stock market indices, we will see that this
ratio has reached its maximum since 2006. Given the cyclical nature of the markets, this means that gold will
be growing rapidly, and key stock indices will begin to decline.
1940 1950 1960 1970 1980 1990 2000 2010

Source: https://www.taxpayer.net/budget-appropriations-tax/understanding-national-debt-debt-ceiling/

34 Global Pivot. How will the price for gold change in the long term perspective? Global Pivot. How will the price for gold change in the long term perspective? 35

Source: https://www.kitco.com/gold-price-today-usa/
Let’s take a look at a twenty-year chart of gold prices. The long-term trend is clearly noticeable. The
exponential growth of gold is held back only by the fact that gold prices have been artificially held back for a
long time, and prices of shares are also consistently inflated.
Bank of America Merrill Lynch’s research team is predicting that gold prices will resume their long-term
growth. According to the forecast, in the first quarter of 2019 prices will reach $1,350 per ounce on average,
and further they will reach $1,441 per ounce.
There is no reason not to trust the forecasts of those who play against gold.
4. BRICS prioritizing gold.
BRICS is an abbreviation for five major emerging national economies: Brazil, Russia, India, China and
South Africa. Today, developing economies around the world are actively joining this alliance.
36 Global Pivot. How will the price for gold change in the long term perspective?
Currently, the governments of China, Russia, India and the countries supporting them are seeking to
reduce the impact of the dollar on their economies.
In 2018, Russia has almost completely disposed of its assets expressed in American securities. China is
actively creating exchanges where commodities will be traded without the participation of the dollar, while at
the same time actively buying gold.
Source: www.goldchartsrus.com
The graph shows the demand for gold demonstrated in the last few years by the countries that today
most actively oppose the US dollar: China, Russia, India and Turkey. They are actively buying gold, taking
advantage of a short period of low prices, because they do not believe in the future of the dollar.
5. Revolutionary financial technologies.
Recently, a new global factor has emerged that allows gold to get out of control of traditional financial
institutions and regain its real value. It is a blockchain technology that is not controlled by central governments
and predetermines the transformation of the conventional financial system.
Having developed a gold-backed cryptocurrency, Gold Standard called into being several factors
contributing to gold evolving into a global standard of value.
Firstly, digital gold in the form of KBC and KCB cryptocurrencies is not under control of the regulatory
authorities and is not dependent on the decisions of financial corporations. Their price is a pure market
instrument - it depends only on supply and demand, and not on the need to make additional debts. Secondly,
Gold Standard creates powerful additional demand for gold which is deposited to back the cryptocurrency.
The digital environment is returning to the Gold Standard. Buying gold to organize the global circulation of
cryptocurrencies backed with gold will push gold prices up, multiplying the value of the metal.
It appears that today no one doubts that under such a combination of circumstances the price for gold will
be rising, and rising significantly, determining the future of the global financial system.
Global Pivot. How will the price for gold change in the long term perspective? 37

WHAT WILL
YOU DO
WHEN YOU
BECOME RICH?
One of the landmark news in the cryptocurrency
world in 2018 was the announcement made by Gold
Standard that starting from July 4th, 2019, KBC
coins can be exchanged for pure physical gold.
Starting from the Gold Independence
Day, everyone will be able to exchange their
cryptocurrency at the rate of 100% KBC = 1g pure
physical gold. To ensure such exchange Gold
Standard bought “Fort Dauphin” gold mine at
Madagascar, made investments in the gold fields
of the Republic of Guinea and makes gold deposits
in Hong Kong.
In practice, the commencement of gold and
foreign currency circulation means that those who
at a good hour invested in Gold Standard projects
will become really well-off people.
In the information age of virtual worlds and
cryptocurrencies, we get out of touch with the
physical world and forget about the real power of
physical gold.
A backer, which acquired 100,000 KBC on the
exchange, will be able to get 1 kilogram of gold.
However, there are those who own a million of KBC,
having farsightedly invested money in their future.
38 What will you do when you become rich?
The closer
the Gold Independence Day,
the more expensive KBC
becomes and the more effort it
will take to become the owner
of this cryptocurrency backed
by pure gold.
Gold has always been a synonym to power and
opportunity.
A person owning 1 Mio KBC, which from July 4th,
2019 will be the equivalent of 10 kilograms of
gold, becomes really well-to-do and can afford a lot.
This money is enough not only to get the
necessary comforts - health, a beautiful
apartment, a country house and exquisite
furniture, but also to provide for a car for each
family member, education for children, expensive
jewelry and travel.
Furthermore, in addition to being spendable,
gold is also investable. In 2018 in Silicon Valley in
the USA, the cost of launching a new successful
startup was comparable to the cost of 10 kilograms
of gold. Consequently, with 1 MIO KBC, you will be
able to set up or buy your own company producing
existing IT products and services and aspire to
achieve the capitalization growth up to the level of
Google and Apple.
Obviously, the window of opportunities offered
by investing in KBC will become smaller and
smaller with the approach of July 4th, 2019.
What will you do when you become rich? 39
Gold Standard Journal is a distinctive business
magazine, which combines the highest quality
standards of a business publication and intellectual
potential of analytical journalism.

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