Ken Lewis: CEO of APMEX Talks Counterparty Risk
Tom welcomes Ken Lewis to the program. Ken is CEO of APMEX and OneGold.
Ken explains the origins of OneGold and what motivated them to build the platform. They wanted to take on ETF’s by allowing investors to buy directly, seamlessly, and intuitively. You can create an account and purchase gold just above spot in only a few minutes. Investors can have partial ownership of a bar and be able to convert this ownership into physical delivery. OneGold is trying to make it easy to either take physical or keep metal on the system.
He explains the differences between ETFs and OneGold. Unlike the ETFs, OneGold can’t sell metal they don’t have in the vault. He notes, they have more exposure to the financial markets because they trade 24/7, and he outlines their hedging requirements.
Ken discusses the different countries where vaulting is available and their plans to expand into other currencies. There are jurisdictional and legal differences between vaults, and they try to be as transparent as possible. Their original vision for OneGold never fully materialized because miners and banks were reluctant to adopt new ideas. OneGold launched in Canada and utilized a pooled account with the Royal Canadian Mint. They felt that having the government of Canada behind the Mint brought several advantages.
Premiums are moving higher from wholesalers, and the supply options are increasingly limited. He says, “Silver eagles are in short supply and by June he believes they will run out.”
He demonstrates how OneGold customers can use their balance to buy any product they want from APMEX.
Ken explains why they are revising some of their terms and conditions by removing obsolete policies and clarifying specific details. He explains why investors’ silver can be segregated and pooled as this allows investors to own fractions of a bar.
Ken discusses their methods and practices around privacy and cybersecurity. They are careful to hold the minimum information legally required for their customers and provide ways for removing unnecessary customer data upon request.
Time Stamp References:
0:00 – Introduction
0:30 – OneGolds Story
6:06 – OneGold vs. ETFs
9:00 – Silver Squeeze
12:46 – CFTC & Bullion Banks
14:15 – OneGold App & Storage
16:07 – Royal Mint – Pooled
23:09 – Vaults, Audits & Title
27:27 – Premiums & Wholesalers
30:14 – Getting Physical & APMEX
35:54 – Fractional Ownership
37:10 – Terms & Conditions
40:08 – Record Keeping
42:13 – Audits & Security
45:12 – Other Conditions
48:50 – Counterparty Risk
53:06 – Vaulting Jurisdictions
1:00:25 – Wrap Up
Talking Points From This Episode
- OneGold’s history and background.
- Title and ownership of metals in vaults.
- Wholesaler premiums and limited supply of silver.
- Privacy, audits, and KYC Requirements
Ken Lewis is CEO of Apmex Inc. and CEO of OneGold. He is a results-oriented professional with more than 25 years of leadership experience across a broad range of retail and technology organizations, many of which are in the Fortune 500. His strategic and operational changes have resulted in growing both the top and bottom lines of an organization. Mr. Lewis joined APMEX in 2011 as EVP of Operations, followed by two years as Chief Operating Officer.