Gold & Forex becomes the new focus of former Frère executives

Whitestone Partners, a holding company founded by former executives of the Frère family’s investment group NPM, has recently acquired a majority stake in Gold & Forex International (GFI), a leading player in Belgium’s gold and foreign exchange trading sector.

Inside GFI’s trading floor, located on the relatively quiet Rue du Midi in Brussels, 13 employees are busy handling near-constant phone calls while monitoring fluctuating prices of gold coins like the Napoleon and Krugerrand, alongside real-time changes in gold ounce prices (31.1 grams), driven by supply and demand.

GFI, situated in the historic heart of Brussels, claims market leadership in Belgium. Its clients range from individual travelers looking to buy foreign banknotes—over 60 currencies available on the same day—to banks, wealth managers, and family offices. With many banks stepping back from trading gold coins for private clients, GFI has carved out a strong niche.

In 2020, GFI’s turnover rose to €238 million, up from €157 million pre-pandemic, driven largely by the surge in demand for physical gold and other safe-haven assets during the crisis. “This increase reflects the renewed attraction to safe assets such as physical gold during uncertain times,” says Alexandre Convent, head of the trading desk.

Meanwhile, travel restrictions during the pandemic impacted the currency exchange side of the business. “Today, we mainly deal in US dollars, British pounds, and Swiss francs,” adds a veteran staff member.

New growth initiatives

GFI is exploring opportunities to expand its offerings. One option under consideration is numismatics—the trade of historic coins and banknotes—which already attracts a niche but growing market both in Brussels and online.

Another initiative is enabling customers to purchase gold per gram, inspired by the modular model of cryptocurrencies like Bitcoin. Small purchases would be accumulated and converted into a physical mini gold bar once 10 grams are reached. This approach aims to make gold more accessible to new generations of investors.

In 2022, GFI launched an e-commerce platform allowing customers to buy up to €60,000 worth of gold online. “We aim to have e-commerce account for 15% of our turnover within three years,” says Nicolas Portello, head of operations and digitalization.

The company also now offers physical gold storage services, outside the traditional banking system—an attractive proposition for investors wary of banks since the 2008 financial crisis. Clients can manage their positions remotely while GFI handles all physical operations.

New ownership for future growth

To support its expansion ambitions, GFI recently secured new backing. Since January, Whitestone Partners has been GFI’s majority shareholder. “We take a long-term investment approach,” says Sandro Ardizzone, co-founder of Whitestone Partners and now CEO of GFI.

GFI’s founding families, Didier Jacques and Thierry Portello, will remain involved for the time being to ensure a smooth transition. The exact timing of their full exit has not yet been determined. GFI was originally founded in 2005.

Source: De Tijd, Simon Souris, 20/04/2021, This is an automatically generated translation of the original article, Link to original article.