Malaysia-based gold trading company IGDX, listed in Australia, and private company Ryefield Holdings start the trading platform Goldzone Investments, a company registered in the British Virgin Islands. IGDX-controlled EDS Software Solutions will own 70% of Goldzone, and Ryefield will hold the remaining 30%. The BVI company will be managed by IGDX subsidiary, and Ryefield will assist in establishing counterparty agreements, especially in Indonesia.
By IGDX estimates, annual revenues of the BVI company will make $USD 9 million. The trading platform is designed to allow customers to go long and short in electronic and pit gold markets. It will be trialled in Indonesia. IGDX considers that the Goldzone platform’s popularity will grow due to the financial crisis, because more and more traders prefer to invest in gold, and gold price is rising.
However, there is a possibility that IGDX will go through insolvency procedure. Having announced the launch of Goldzone, it sent a letter to the ASX stock exchange with the report about whether the company’s cash flows would allow it to trade for another two quarters of the year. The Malaysian company was listed in early 2007, and since that time and until launching a new financial market its only businesses have been a HK-based gold coin dealing, and a business in Malaysia.