The Contractual Gold Payments are paid from advisory fee income generated by any financial product backed by physical gold (including the proportion of gold in any security which is backed by assets other than physical gold) which is owned or sponsored by the Company and which is publicly offered to investors pursuant to a public offering document approved by a European regulator pursuant to European regulations. The Contractual Gold Payments are subject to adjustment and reduction for declines in advisory fee income generated by such products, with any reduction remaining due and payable until paid in full. ETFS Capital’s recourse is limited to such advisory fee income and it has no recourse back to the Company for any unpaid amounts that exceed advisory fees earned. ETFS Capital ultimately has the right to claw back Gold Bullion Securities Ltd. (a physically backed gold ETP issuer) if the Company fails to remit any amounts due.

The Company determined the present value of the deferred consideration of $228,062 and $230,137 at December 31, 2021 and 2020 using the following assumptions:


	December 31, 2021			December 31, 2020
Forward-looking gold price (low) – per ounce	$	1,833		$	1,903
Forward-looking gold price (high) – per ounce	$	2,705		$	2,662
Forward-looking gold price (weighted average) – per ounce	$	2,106		$	2,117
Discount rate		9.0	%		9.0	%
Perpetual growth rate		1.0	%		0.9	%

The forward-looking gold prices at December 31, 2021 were extrapolated from the last observable CMX exchange price (beyond 2027) and the weighted-average price per ounce was derived from the relative present values of the annual payment obligations. The perpetual growth rate at December 31, 2021 was determined based upon the increase in observable forward-looking gold prices through 2027. This obligation is classified as Level 3 as the discount rate, the extrapolated forward-looking gold prices and perpetual growth rate are significant unobservable inputs. An increase in spot gold prices, forward-looking gold prices and the perpetual growth rate would result in an increase in deferred consideration, whereas an increase in the discount rate would reduce the fair value.

Current amounts payable were $16,739 and $17,374 and long-term amounts payable were $211,323 and $212,763 at December 31, 2021 and 2020, respectively.

During the years ended December 31, 2021 and 2020, the Company recognized the following in respect of deferred consideration:


	Years Ended December 31,
	2021		2020			2019
Contractual gold payments	$	17,096	$	16,811		$	13,226
Contractual gold payments – gold ounces paid		9,500		9,500			9,500
Gain/(loss) on revaluation of deferred consideration – gold payments (1)	$	2,018	$	(56,821	)	$	(11,293	)

(1)

Gains on revaluation of deferred consideration – gold payments result from a decrease in spot gold prices, a decrease in the forward-looking price of gold, a decrease in the perpetual growth rate and an increase in the discount rate used to compute the present value of the annual payment obligations. Losses on revaluation of deferred consideration – gold payments result from an increase in spot gold prices, an increase in the forward-looking price of gold, an increase in the perpetual growth rate and a decrease in the discount rate used to compute the present value of the annual payment obligations.