I understand everything you've written, and I haven't dismissed the other advantages of having an account with RRDJ. It's an excellent system. However, I initially thought physical gold was purchased for the depositor and held in storage. Now that I know this isn't the case, I need to inform others in my circle who also had this assumption.
Fiat AUD loses value over time due to inflation, so any account held in AUD, such as the GIA, also loses purchasing power. While $10,000 today will still be $10,000 in three years, it will buy less than it can today. This is why buying gold with fiat offers some protection against the loss of purchasing power over time. Two ounces of gold today will still be two ounces in three years, but they will likely buy more than two ounces can today.
The video mentioned this concept, which is why it was assumed that gold is held for the depositor and not just AUD fiat.
Your point about fiat currency losing value is valid. However, your understanding of how RRDJ operates is slightly off. We don't trade in fiat currency—it’s a gold-backed system. While fiat is initially received to facilitate gold purchases, the focus remains on gold as an investment. Gold is treated as property and is protected under privacy laws. It is non-taxable as long as it remains in gold form.
If gold is sold and converted to fiat, it becomes taxable income. However, if you sell RRDJ gold, it is treated as a gold currency, whether through EFT, Mastercard, bullion coins, or notes. If it’s sold and the credit enters the fiat system, it is treated as a lifetime loan, which is non-taxable by default. Similarly, fiat received into the GOVCORP account and invested in gold remains tax-exempt.
Future Plans:
RRDJ will eventually be set up as an irrevocable trust, enabling it to open a bank account under its trust name with a GOVCORP bank. The current GOVCORP account in Spiros’ name is a temporary arrangement until RRDJ is formally recognized under Common Law jurisdiction instead of UCC.
To maximize benefits, consider placing your gold in an IBA instead of a GIA to gain equity. This setup is also inflation-protected, ensuring gross value (not net) is retained. EFTs from the GOVCORP account remain inflation-proof, with no means test or reduction in Centrelink payments.
For example, you could have $1 million in bullion held by RRDJ and still be entitled to receive the full age pension. Since the bullion is not in your sole legal name, it is not considered a personal asset. Similarly, fiat transferred to Spiros’ account cannot be claimed by GOVCORP as part of your legal sole name assets.
The key is to consider the bigger picture, not just isolated elements of the system.