Interview with Adam Trexler, President and Founder of Valaurum, Inc.
Valaurum is a private gold technology company that sells the ‘smallest verifiable unit of gold available on the world market,’ the Aurum®. Valuarum has patented nanotechnology that allows them to spray gold onto a film in different denominations (US$3-US$150), with the goal of making gold investment and ownership accessible to everyone, putting gold into a transactable form.
The team is strong. It features a former director of the US mint, Edmund C. Moy, as an advisor, alongside Director, and former GC of the Department of Homeland Security, John M. Mitnick. There are plenty of people formerly from the U.S. treasury onboard too.
Matthew Gordon talks to Adam Trexler, 27th June 2020
Aurum® itself is a thin layer of gold or other precious metal sandwiched between layers of protective polyester. it is easily storable, transportable and collectable. The long-term goal is to make Aurum® an everyday currency for consumers on the high street. This might not be as far away as one might think, given that Valuarum has already had conversations at the federal bank level, as the company climbs the chain of credibility. Not bad for a small company. Ghana is in discussion about issuing legal tender Aurum® notes. Aurum® can be purchased as a true monetary instrumental or a bullion product.
Aurum® is not currently sold as a definitive denomination. It is sold in terms of weight of gold contained. This helps avoid any regulator issues with banks and regulatory authorities. There are private mints throughout the world, and Valaurum is simply a private mint that has a proprietary technology. Any regulation, therefore, falls under minting law.
How does the patented process work? First, the company takes very long rolls of polymer film and puts them into a vacuum. Then, Valaurum sprays individual gold atoms that it builds up on the film. Therefore, the company is allowed to control exactly how much gold is put down at a level that far exceeds a conventional foil. The entire gold laminate is structured in 3D, making the notes extremely difficult to counterfeit. Valuarum continues to make “huge” investments into anticounterfeiting. Coins are a “2000 old technology that struggles with authentication;”. The process of authentication in the US is being established, and requires individuals to take their Aurum® to a local coin dealer. However, outside of the States, it’s still a little complicated.
Trexler expects any potential competitors to find it extremely difficult because his company has a “huge first-mover advantage.” The large barriers to entry could put off some.
Valuarum is currently raising US$1M via direct investment to continue to fund the company’s research & development and continued market expansion. Secondly, the company is looking for a “major partner” who will finance a US$2.5M factory expansion; this will “quadruple production output” while reducing costs. Trexler runs a very tight ship on what is essentially a margin product. It’s a battle of balancing production capabilities against gradually increasing demand. The company has been growing within the limitations of it budget and learning the ropes. We are looking for signals of aggressive plans, but this seems to be hampered by the need to operate in the confines of the regulated market.
Eventually, licencing the technology to existing mints will form part of the overall business strategy. in 10-years, Texler expects major mints to want the technology. The battle thus far has been demonstrating market demand & acceptance, and learning how to scale such an idiosyncratic technology. He believes the company is winning the conversation of being a serious mint that is offering a product that consumers will accept.
Trexler is approaching this whole thing cautiously. He is taking his time and is avoiding making any critical errors. How will Valaurum continue to develop? Trexler has got this company off on the right foot, but it will be very interesting to observe how the market grows over the next few years and whether Valarum is able to secure high-profile and profitable deals
What did you make of Adam Trexler and Valaurum Inc? Comment below and we will respond.
Company Website: https://valaurum.com/
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