Vinaora Nivo SliderVinaora Nivo SliderVinaora Nivo SliderVinaora Nivo Slider

What exactly is a PurePlay® Instrument? The PurePlay® Product gives Investors direct access to the mineral value of Reserves held by mineral Producers while Producers will absorb all the costs of storage, insurance and delivery as well as perform all the tasks and meeting all the logistic challenges of delivering the mineral to the Investor at the end of the storage period.

This desirable effect is achieved through the unique design of the PurePlay® Instrument. It is:

  • a tradable Bill of Sale of a specified quantity of gold (or any other fungible mineral) in the Proven and Probable Reserves of the Producer. It is a sale at spot, payable upfront and the price risk passes upon sale to the Investor.  No interest is payable on the PurePlay® Instruments, as it is a sale of the commodity in Reserves. Investors in commodities give up interest in exchange for the price movements in the commodity with the aim of making “capital” profits (an Investor in a gold coin does not expect to receive interest); 
  • an obligation on the Producer to store that gold free of charge (usually in unmined form) for the Investor for a period of (say) 10 years from subscription. This is where the Investor achieves an unmatched cost efficiency relative to existing commodity exchange traded funds where the mineral is stored in a costly vaulting system while the Producer can provide this service free of charge without any effect on its cost structure;
  • an obligation on the Producer to extract and refine the gold (or any other fungible mineral) on or before the delivery date (ie mining will probably take place just before redemption). The Investor must be satisfied that the Producer will honour this obligation and this risk will be judged with reference to the ability and track record of the miner to produce the mineral. Most of the envisaged issuers have excellent production track records stretching back over many decades;
  • an obligation on the Producer to deliver the gold on the delivery date to the then holder of the Bill of Sale. The Investor must be satisfied that the Producer will honour this obligation. Producers deliver their product continuously and this will just be an extension of normal deliveries, again having no additional cost implication for the Producer.

We will show in the ETF arbitrage section which follows the real value to Investors of the contribution of Producers to provide free storage and delivery services to the Investors. Both parties must gain in all mutually beneficial relationships. The Producer receives the spot value of the commodity in cash on the date at which it sells the PurePlay® Instrument but as a result of the storage arrangement can delay the extraction and delivery costs for most of the storage period. It effectively means that the Producer has the use of the cash, free of interest, for this period.  That is a material value gain for the Producer, which must be sufficient to compensate the Producer for relinquishing the price risk to the Investor and performing storage and logistical services free of charge for Investors.

PurePlay® Instruments are fully tradable market instruments and would usually be listed on the main board of national stock exchanges. Our research indicates that Investors will generally have a trading advantage over Producer Issuers in the short to medium term when the investments are assessed for price risk. Producers will tend to have an advantage over the long to ultra-long term through the power of compound interest. It is not expected that Investors would generally hold the PurePlay® Instruments for the full duration of the storage period but instead we expect that Investors will trade the PurePlay® Instruments just like any other market instrument in accordance with their needs and market views. PurePlay® Instruments will allow Investors to act on their commodity views and investment needs in a cost efficient and pure play manner never before seen in the commodity markets.

Patents and Trade Marks

The Intellectual Property of PurePlay Holdings (Pty) Ltd is protected by world-wide pending Patents.

Trademarks awaiting registration are PurePlay™, Nature’s Vault™, As Good as Gold™ and Sp☼t True Value™.

Contact Details

5 Jan Smuts Avenue,Winston Park
Durban, 3610,South Africa

Tel: +27 31 7670156
Cell: +27 82 4515864
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.