Page 26 - Bullion World Issue 9 January 2022
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Bullion World | Issue 09 | January 2022

markets, taking advantage of          trend changes in a particular metal    client vaulting portal which allows
reducing portfolio risk through       and we attempt to leave as late as     them to have a thorough overview
rebalancing is very clear.            possible from an appreciating metal    of their holdings (right down to
                                      or metals through self-generating      individual bar / serial numbers) at
Precious metals, including Gold,      trailing stop-loss variables.          all times from their smartphone.
Silver, Platinum, Palladium                                                  Whilst Auctus Metal Portfolios has
and Rhodium, have grown in            What audited returns have your         a minimum investment requirement
prominence in recent years,           clients seen since you began           of S$250,000 (US$185,000) and
as viable and safe investment         offering Auctus Metal Portfolios       is headquartered in Singapore,
alternatives to include in one's      to your clients in January 2016?       the vast majority of our clients are
overall asset portfolio. We are also  Clients who have invested with us      domiciled overseas; with clients
always considering the liquidity      since 2016 have enjoyed a very         spread across all continents from
of each precious metal along with     comfortable ride indeed, seeing        India to the US, Australia to Europe
the broader analysis that we apply.   returns of 850% as of today. Whilst    and everything in between. We
This is particularly true when you    precious metals have very much         appeal to both high net worth
consider global Central Banks have    underperformed the markets             individuals, financial institutions
been net buying Gold in record        over the last 15 months, this is       and wealth management who are
numbers every year since 2010         quite normal when examining            looking to generate that alpha
into 2021; again this is done as      historical cycles and price analysis   return over and above a static
a diversification tool for Central    charts. Precious metals have           holding of Gold or Silver.
Bank's very own asset portfolio.      been technically price back-filling
Careful asset allocation seeks        and building a solid foundation            Mr David started off as a
to increase risk-adjusted returns     while at the same time the overall         computer programmer but was
through diversification, based on     macroeconomic and fundamental              offered the opportunity to join
the principle that different assets   story for metals has grown ever            the trading desk at Rothschild’s
perform differently under varying     stronger.                                  in London in the mid 80’s and
market and economic conditions.                                                  was thoroughly captivated.
For several decades, investors have   Tell us about your bespoke                 Having spent over 20 years with
achieved this balance, through        vaulting solution and the type of          a number of investment banks
traditional asset classes, such as    clients Auctus Metal Portfolios            including Swiss Bank, HSBC and
stocks, bonds, property and cash.     attracts?                                  NationsBank who took over Bank
I would suggest that precious         When I was setting up the structure        of America, David has worked
metals are very much about to have    of our client's vaulting solution for      all over the globe and achieved
their 'day in the sun' so to speak    Auctus Metal Portfolios, I wanted to       success initially as a chief dealer
and these other asset classes are     absolutely ensure that our clients         and then later as the head of the
clearly very overvalued.              would have zero third party liability      proprietary risk trading desks.
                                      or counterparty risk. To achieve
Truly a perfect storm and a           this, we decided not to go with the        Mr. David is a founding partner
diversification opportunity           usual sub-accounts or custodial            of Auctus Metal Portfolios
extraordinaire.                       accounts which are typically               in 2016, a physical precious
                                      exposed to counterparty risk, but          metal management system
When thinking about a metals          rather offer our clients a 3rd party       that balances clients’ vaulted
portfolio, it is important to         vaulting solution with Malca-Amit at       metal holdings at Le Freeport
understand that precious metals       Le Freeport Singapore.                     Singapore between Gold,
move in amplitudes of value against                                              Silver, Platinum, Palladium and
each other in clearly defined ranges  All of our client's vaults are wholly      Rhodium. These vaulted accounts
over differing economic periods       segregated under their family name         are held under the client's own
or cycles. Each metal has its own     and fully allocated with metals at         family name which ensures
unique, determinable pricing          all times. The client's holdings are       sole title and fully segregated
relationship with the others. Our     fully insured by Lloyd's of London         ownership of the bullion.
Auctus Metal Portfolios algorithms    and regularly audited. Auctus Metal
are focused entirely on extracting-   Portfolios is a long-only portfolio
out optimal returns from an already   and we never revert back to Fiat
acceptable performing asset class     currency; unless of course the
(precious metals); by identifying     client wishes to sell down some or
such investment opportunities that    all of their metals; which of course
have not already been recognised      they are free to do at any time and
through standard analysis. We tend    without penalty. We provide our
to arrive very early in identifying   clients with a unique login to our

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