Deferred consideration represents an obligation the Company assumed in connection with its acquisition of the European exchange-traded commodity, currency and leveraged-and-inverse business of ETFS Capital Limited (“ETFS Capital”) which occurred on April 11, 2018 (“ETFS Acquisition”). The obligation is for fixed payments to ETFS Capital of physical gold bullion equating

to 9,500 ounces of gold per year through March 31, 2058 and then subsequently reduced to 6,333 ounces of gold continuing into perpetuity (“Contractual Gold Payments”).

The Contractual Gold Payments are paid from advisory fee income generated by any Company-sponsored financial product backed by physical gold and 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 $200,290 and $228,062 at December 31, 2022 and 2021 using

the following assumptions:


	December 31, 2022		December 31, 2021
Forward-looking gold price (low)—per ounce	$	1,858	$	1,833
Forward-looking gold price (high)—per ounce	$	3,126	$	2,705
Forward-looking gold price (weighted average)—per ounce	$	2,237	$	2,106
Discount rate		11.0%		9.0%
Perpetual growth rate		1.3%		1.0%

The forward-looking gold prices at December 31, 2022 were extrapolated from the last observable CMX exchange price (beyond 2028) 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, 2022 was determined based upon the increase in observable forward-looking gold prices through 2028. 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 $16,796 and $16,739 and long-term amounts payable were $183,494 and $211,323 at December 31, 2022 and 2021, respectively.

During the years ended December 31, 2022 and 2021, the Company recognized the following in respect of deferred consideration:


	Years Ended December 31,
	2022		2021		2020
Contractual gold payments	$	17,108	$	17,096	$	16,811
Contractual gold payments—gold ounces paid		9,500		9,500		9,500
Gain/(loss) on revaluation of deferred consideration—gold payments (1)	$	27,765	$	2,018	$	(56,821	)

(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.