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Historical Back Testing for Gold, Platinum, Palladium, Copper and Oil (WTI).

Historical Back Testing for Gold:

The first major element for evaluation is the price differential between the spot issuance price and the maturity spot price of PurePlay® Instruments issued, representing an opportunity cost to the Producer if the commodity price has risen or an opportunity benefit where the commodity price has dropped. Evaluation against the spot price of a commodity avoids any debate surrounding the type of cost measurement to be used to establish a gross profit margin.

The second major element for evaluation is the compound interest, stripped out from PurePlay® Instrument issuance cash flow and accumulated in a notional sinking fund for measurement purposes. The back-tested PurePlay® Instrument program is beneficial if the compound interest exceeds the price differential.

We use two charts for each mineral to demonstrate the back-testing result. The first chart is a representation of the historical spot price time series and the historical interest rate applied to the calculation of interest. The second chart simply shows the value of compound interest opposed to the cumulative value of the spot price differential.

1976 has been chosen as the most appropriate starting point for a market-related spot gold price given the 1971 USA/Nixon exit from the last remnants of the gold standard, with other countries following soon after. US citizens were only allowed from 1974 onwards to own gold again for investment purposes. Thus the period from 1976 onwards is considered to be a “free market price era” for gold.

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
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