Commodities

Corniche has always handled commodities as current accounts, with value typically being measured in Troy Ounces or similar.

For example, clients of the bank can make and receive payments in Gold (XAU) from other clients of the bank. The bank can charge fees for these transfers, picking up these fees as a commodity value or a currency value.

Another interesting scenario is where the bank holds a physical commodity such as gold and lets its customers invest in fractions of physical size – basically a gold-backed account whose value changes with the actual market price.

Funds and Commodities

When wisely held, commodities can provide a smoothing effect on assets, since the prices of gold, silver, platinum, copper or whatever move in generally predictable phases unlike digital currencies which are subject to wild swings.

Some Corniche banks establish accounts which are similar to a fund. The value of the currency in the special current account class is used to invest in a commodity. In effect, the current account class is like a single-purpose investor pool or fund. It loans money to the bank for the purpose of investment in, say, gold.

Those sums invested are like shares – and can be revalued against the current valuation of the commodity purchased.

Quick facts

• Commodities as currency
• Investment in commodities
• Sell or trade hard commodities
• Inter-client payments in commodities
• Digital commodities