Fork

What is a production fork?

The term "fork" is borrowed from the world of cryptocurrencies, and it helps us better understand the underlying process. In the context of production, a fork occurs when two production processes are established for the same product, resulting in different production prices. This leads to distinct pricing, which stabilizes in the period following the fork. In accordance with ESG-M guidelines, companies committed to responsible practices provide compensation to customers who have purchased products based on the higher price, whether it is their current or past purchases.

By how much did the price drop due to the production fork?

The price has been reduced from 1,816.70 €/g to 1,184.23 €/g. This corresponds to a 34.814 per cent reduction. This creates an exorbitantly good opportunity for a favorable entry into crystalline osmium for interested parties and top-up buyers.

Can I restock during the Osmium fork and at what price can I reserve?

The price of 1,184.23 €/g is only valid on the day of the fork. However, all non-binding reservations will be maintained until the 5th of August 2023. This allows one to take time to decide whether to buy or not. Should one then wish to use the reserved price for a real purchase, one must convert the reservation into an order. To do this, simply send an e-mail to fork@osmium-institute.com. Alternatively, you can order via the hotline +49 (89) 744 88 88 88. Reservations are still possible in the days after the fork and will continue to be valid until the 5th of August 2023. However, reservations can only be made at the price shown on www.osmium-preis.com on the day of the reservation. Reservations can be partially or completely transferred to other interested parties. All reservations are completely non-binding and will be automatically deleted if not used on the 5th of August 2023. Reservations are necessary because production quantities are allocated to them.

Why is a production fork relevant to ESG-M?

ESG, known for its role in promoting responsible corporate practices, often falls short in ensuring accountability beyond the initial sale to the first customer. Moreover, certain industries engage in greenwashing and employ strategies to bypass ethical sourcing standards.

In the realm of crystalline osmium trading, the significance of the letter "M" becomes evident. Market Governance enables companies to assume responsibility for the trading of their products, even in the private secondary market.

An exemplary case is the Osmium Production Fork, where customers who made purchases before the price reduction are fully compensated through improvements in production, thereby avoiding any loss of value. ESG-M principles can be applied when certificates and product recognition enable tracking of a product, even in secondary or tertiary markets, and facilitate communication with owners. These procedures enhance market transparency and safeguard tangible investors.

In contrast, the diamond market serves as a counterexample. Although certificates are utilized, not all companies pass on the benefits of cost-effective production of lab-grown diamonds to consumers. In the event of declining diamond prices in the global market, tangible investors could face devastating consequences on their assets.

Why do I get merchandise equalization at all?

The transition from 5cm discs to 9.5cm discs in the production of semi-finished osmium products has resulted in an increase in output with a similar effort required for crystallization in each growth cycle. This expansion not only boosts the quantity of goods produced but also reduces production costs. However, it's important to note that this cost reduction applies only to the crystallization process, not to the high purification of crystalline osmium. Consequently, a straightforward linear calculation of production prices is not feasible, but the overall effect is a significant decrease in prices. It is unlikely that a similar osmium production fork will occur again, as the current 9.5 cm production size represents the current physical limit.

No price increase for crystalline osmium was observed in 2022 due to a combination of decreased production costs and surplus generated to compensate owners for the cost reduction. This compensation applies to all owners, regardless of whether they purchased crystalline osmium from an institute, a wholesaler or private individuals.

The positive outcome is that the more favorable price level of crystalline osmium now enables both new customers and existing customers to replenish their supplies at an advantageous price.

Can I also receive the value compensation in the form of money?

The production fork refers to an excess quantity in production. This does not generate money, but rather finished crystallized goods. For this reason, the compensation is spent in the form of goods. However, the personal value in own goods, related to the respective current price before and after the fork, must be preserved at all costs according to the ESG-M guidelines. So, price times merchandise in grams before fork and after compensation and price reduction is identical for each customer.

This approach is tied to weight, but not cutting costs. Production costs in the area of producing shapes are not affected by the production fork. For this reason, surcharges paid for cuts or special shapes are not taken into account.

Exactly how and when is the difference in the value of my personal tangible asset portfolio calculated?

The subsequent delivery is based on the value of each owner's personal deposit of crystalline osmium, which is registered in the osmium world database under their ownership. The current production value has been calculated by multiplying the price by the quantity of goods in grams on the day before the production fork. In order to maintain this value on the day after the fork, the reduced price had to be taken into consideration. Consequently, the production value of all goods held by a customer is divided by the new price after the production fork. This calculation determines the quantity of goods that should now be in the customer's possession to achieve the same production value.

At this point, there is a discrepancy in the quantity of goods. To rectify this, additional goods are provided to the owner until the total value of goods, when multiplied by the current price, matches the production price prior to the fork. Thus, the owner with a higher quantity of goods now has the same production price of the total goods as on the day before the fork.

Is another osmium fork to be expected?

One should never say "never", but it is not to be expected that the crystallization can be changed to larger diameters a second time. This statement depends on the pressures and temperatures created. It seems nearly impossible to find a production variant that would allow such environmental conditions on a commercial scale.

What is clear, however, is that even in the unlikely event of another production fork occurring, the ESG-M guidelines for production-related compensation of market prices would apply.

It could become interesting if significant quantities of osmium-187 were available to build up isotopically pure production. Of course, in this case the price would only follow the myth and rarity, but it is clear that not a milligram of this rare material should be lost. This would make the production process even more costly. However, the normal market for crystalline osmium is not affected in any way. In principle, it is a thought experiment that would perhaps never occur in the real world.

Do all customers receive the same percentage compensation?

Every customer and owner are to be treated equally before the guidelines of the ESG-M. For this reason, the compensation is exactly related to the quantity of goods owned in grams. This approach does not experience any differences. The amount of compensation as a quantity of goods was calculated on the day of the osmium fork.

On what day did the Osmium Production Fork occur?

The fork occurred on June 5^th, 2023. At the moment of the fork,  two crucial numbers for the calculation had to be identical at the moment of the fork. These numbers pertain to the market cap of crystalline osmium before and after the fork, and they have been determined through a simple proportional calculation.

During the fork, the production price was adjusted to the newly calculated daily production price. As a result, the amount of osmium in the hands of tangible asset investors remains the same on the global market, but the value of the commodity decreases when the new current production price is considered. However, this reduction is compensated for under the ESG-M guidelines.

The day of the fork was precisely determined as the moment when the accumulated overproduction at lower prices reached the quantity required to compensate all owners. It happened then that the calculated price for the production of crystalline osmium in the Swiss price tool was changed to the new production price.

How is the quantity of goods for compensation determined?

On the day of the fork, the calculation for compensation involved determining the total quantities of goods needed. These quantities represent the difference required to ensure that each owner of crystalline osmium, after receiving additional goods as compensation, would have paid the same hypothetical production price for their entire inventory. The goal is to maintain an identical value of goods, regardless of whether the customer made their purchases before or after the fork.

When is the production fork finished?

The fork concludes when all the additional goods resulting from the overproduction have been distributed proportionally among the owners. Following the fork, each owner can calculate their new total quantity of goods by multiplying it with the current price. This allows them to receive the same value they would have obtained if they had calculated it using the lower quantity of goods and the higher price from the day before the fork.

To ensure fairness for all owners, the option to pre-order the purchase of new goods is provided on the day of the lowest price. This enables interested parties who are not yet owners to take advantage of the advantageous purchase prices.

Nevertheless, you can still make advance reservations on the days after the fork. These reservations will be deleted on August 5^th, 2023. They are valid on the day of the pre-reservation and the price valid on that day. The price may be viewed at www.osmium-preis.de.

How does an owner legitimize himself for the claim of compensation goods, if he had bought from private?

Owners will undergo the legitimization process on the online through a provided link. They will need to enter their Owner Change Codes (OCCs) to receive the compensation goods. In case an owner has misplaced their OCCs, they can request them again to the email address registered in the Osmium World Database.

The compensation received by institute customers is identical to that received by customers who purchased from dealers or private individuals. The purchase method does not affect the compensation. The determining factor is solely the ownership of the goods. Only the registered owner or company is eligible for compensation.

However, owners who acquired their crystalline osmium through the secondary market, must ensure that their ownership is completely registered in the osmium world database to legitimize themselves as owners for the fork.

The registration of ownership is performed by the previous owner at the time of purchase, using their OCC. It is a mandatory requirement for owners to fulfill this condition if they wish to receive the compensation goods. The proof of ownership is the six-digit Owner Change Code (OCC).

Are customers who have purchased jewelry also compensated?

Jewelry represents a processed form of crystalline osmium. These goods have undergone alterations and have been combined with other metals through the jewelry production process, resulting in a different value. Compensation for processed goods applies only if they are still owned by a jeweler and have not been sold.

In such cases, it is up to the jeweler's discretion whether or not to pass on the purchasing advantage to the customer, as the price of jewelry is not solely based on the proportion of osmium.

Will the price of crystalline osmium return to the level of the price before the fork?

The probability of the price of crystalline osmium rising even after the fork is quite high due to several factors working in combination.

Firstly, production prices are expected to increase again, as a reduction in energy and overall production prices is unlikely given the current global political situation.

Secondly, there is a strong incentive for owners to hold onto their crystalline osmium instead of selling it at the lower post-fork price. Most owners will choose to wait for higher prices, hoping to benefit financially from their increased ownership of osmium when they eventually sell.

Thirdly, the emergence of osmium exchanges in the near future could potentially lead to a reversal of the lowered post-fork price. This could facilitate a recovery in the price of crystalline osmium, potentially reaching or surpassing its pre-fork level within a few years. Owners who have received their compensation would particularly benefit from this scenario.

Considering these factors, it is likely that the price of crystalline osmium will experience upward movement in the future, presenting a favorable opportunity for owners to maximize their returns.

Is the price of osmium also expected to continue to fall?

Production prices are more likely to continue to rise in the future, as energy and technology will not become cheaper in the future. Moreover, the likelihood that such a low price will stay at such a level is slim as people will usually continue to buy at such a low price. This is important for the case when there will be exchanges for crystalline osmium.

How long has it been known that osmium can be crystallized in larger disks?

Initial experiments conducted in 2021 yielded promising results, albeit limited to laboratory settings and not on a large-scale production level. This meant that a complete conversion of production methods was not feasible, despite the existence of discs with diameters approaching 10 cm.

During that time, efforts were focused on improving production techniques, not with the aim of reducing production costs, but rather to enable the creation of larger inlays specifically for the jewelry market. The subsequent reduction in production prices emerged as a favorable byproduct, which is now being passed on to the owners of crystalline osmium.

In the early stages of working with the larger discs, the harvest rates were relatively low, ranging from only two to three percent. It is only in recent months that the harvest rate has reached eight percent. This increase has led to a surplus of crystalline osmium, which has been distributed to owners as part of the ESG-M initiative.

Are there any costs incurred for shipping and packaging as part of the compensation?

As a gesture of goodwill, the Osmium Institutes will cover the packaging and shipping costs for many thousands of owners. However, packing is simplified because most owners do not yet have their storage boxes fully stocked.

Should the stocking require an additional box, this will be handed out to the owner free of charge.

What delivery times can be expected as part of the fork?

The particularly high number of packages and delivery runs will inevitably lead to a traffic jam in the execution of the promotion. However, it is expected that the campaign will be completed approximately six weeks after the fork, using all resources available.

Even if goods would be delivered with delay, the claim for these goods will not be forfeited.

Can someone other than me receive my goods?

If a person is designated who is authorized to receive the goods and has a power of attorney, the goods can be delivered to another person. This person is considered the possessor at that moment until the goods arrive in the hands of the owner.

How does the allocation of new ownership work and do I still have to do anything as a recipient?

The allocation of the new compensatory goods is automated using the owner's OCC, as the owner's information is already present in the system and they have verified their ownership by entering their OCCs.

This procedure changes if goods are also exchanged as part of the fork or if a customer purchases additional goods. In such cases, the quantity of goods increases, allowing for delivery in a different denomination and larger pieces.

It's important to note that this allocation process is not carried out electronically, but rather through coordination between employees and the customer. To ensure a smooth transaction, it is recommended to inform the Osmium Institute if you prefer larger pieces, even if it means adding a gram to achieve the desired denomination. Larger pieces are generally easier to sell as they result in less waste during jewelry production. By expressing your request for larger pieces, you can enhance the convenience and efficiency of the transaction. This preference can be communicated by contacting fork@osmium-institute.com.

Can I resell the newly received goods immediately after the fork or put them on the Marketplace?

Yes, this is possible, but engaging in short-term speculation or attempting to exploit the fork for immediate gains is not advisable. It is important to consider two factors: the potential for prices to reach pre-fork levels again and the responsibility of market participants and owners to avoid flooding the marketplace.

The goal is not to engage in short-term speculation or be the first to exit the market before others. Instead, individuals are encouraged to exercise patience and wait for significant changes to occur in the market.

It is expected that raw osmium inventories will continue to decline, and recycling crystalline osmium from the secondary jewelry market back into the tangible asset market is basically nonexistent. Recycling destroys the crystal structure and compromises the authenticity of the osmium.

It is important to remember that the optimal time to sell in a long-term bullion investment is when both prices and market liquidity are high. However, for crystalline osmium, this favorable condition may not be immediate but is anticipated in the future.

Will I receive an invoice for the compensation goods?

No, because you do not have to pay for the goods. The compensation goods are delivered based on the ownership of crystalline osmium. Therefore, each owner receives a delivery docket and does not have to pay for the compensation.

If a different denomination is requested, any additional amount of osmium will be billed accordingly. This approach is sensible to avoid receiving numerous small pieces that may compensate accurately but are otherwise inconvenient to handle and resell.

Can I choose my own osmium denomination in the form of the compensation goods?

Yes, every customer has the option to balance their quantity of crystalline osmium upwards by exchanging goods. This means that additional compensation goods received during the fork, the goods owned prior to the fork, and any additional goods desired by the customer are combined to achieve the desired weight or quantity of crystalline osmium.

To facilitate this process, customers can contact the hotline where they will be guided through the specifications and arrangements. This ensures that the quantity of delivered crystalline osmium aligns with the customer's preferences and objectives, such as acquiring a specific quantity of osmium to be incorporated into a new piece, such as a disc.

Are cutting costs included or compensated?

No. Cutting costs are additional costs that are not related to the quantity (or weight) of goods. There is no compensation or offsetting option for these costs.

In the example of the most expensive new violin, how does the Osmium Institute handle coomodity compensation?

For the most expensive piece on the market, 541 pieces of crystalline osmium were used. Here the compensation has been solved in a special procedure. A small violin of osmium is cut from the surplus, which is added to the violin free of charge in the sale.

How does the Osmium Institute proceed with round bars, popularly called rings?

Again, they are simply compensated by weight. However, as part of the exchange process, the ring can also be converted into a flat bar or disc at the same time (ie. exchanged or “traded-in”).

In what packaging will I receive my compensation osmium?

Since the packaging of the first goods is in the hands of the owners and since usually not all empty spaces are occupied in the boxes, the goods are shipped in secured envelopes and their foil packaging with floating frames.

Small squares, which serve to accurately balance the quantities of goods, are delivered in small glass vials that can be inserted into the osmium box in place of the pen.

Will I receive a tracking number?

Yes, for each delivery that is not a hand delivery to be carried out by institute delivery personnel the customer receives a tracking number.

What happens if I missed the fork and did not receive any mails?

The right to compensation in the fork is lost in time only after 10 years. As long as proof of ownership on the day of the fork can be provided, compensation will be delivered at the fork day price.

Do customers who do not have an OIC because they had already purchased osmium prior to the certification process also receive the commodity compensation?

Yes, these owners will also receive full compensation. However, the pieces will also be called into the institute as part of the fork and fully certified here at no cost.

I have crystalline osmium in my ownership but have not received the OCC. Has something not been done correctly in my transfer and will I still receive compensation?

In such a case, a previous owner did not perform the transfer by OCC, which would have been his obligation. The transfer of ownership must be done before the compensation is delivered. Otherwise, the registered owner will receive the compensation goods. If this happens, they are automatically obliged to deliver the goods to the new owner, since the compensation is tied to the goods owned before the fork.

What happens if a dealer or bank has pooled my osmium and I only own one share certificate?

Even in this scenario, the compensation remains legally valid and is issued to the owner of the goods, which in this case is the pool agent. However, the compensation belongs pro rata to each of the pool agent's clients. It is the responsibility of the pool agent to ensure that this information is passed on to the respective clients.

If the goods are distributed in the future, the fork and the associated surplus quantity must be taken into account. This ensures that the compensation is appropriately accounted for and allocated to the individual clients of the pool agent.

How does the quantity structure of osmium change internationally as a result of the fork?

The quantities of sellable crystalline osmium will decrease as a significant amount of merchandise is distributed to previous owners, resulting in a reduction of the total available quantity for sale. This phenomenon is called the Osmium Thinout and brings the osmium supply closer to becoming scarcer.

In 2022, stockpiles of crystalline osmium were accumulated in preparation for the production fork through increased crystallization of large-scale investor disks. As a result, the price remained relatively stable throughout 2022 without further increases. Moving forward, the crystallization process is now faster and more cost-effective, leading to a faster depletion of raw osmium stocks, and bringing the Osmium BigBang closer.

Therefore, this is a pivotal moment in the history of crystalline osmium for those interested in entering the physical commodity market. It is expected that the price will also experience a rapid rise, especially in relation to energy prices.

What does the future look like after the production fork?

Predicting the future is indeed challenging, as political and economical situations are dynamic and constantly evolving. However, investing in crystalline osmium has proven to be a wise choice. The growth of sales will be parallel to the expansion into new international markets, ensuring a promising outlook. Additionally, the jewelry and luxury goods sectors have shown great interest in crystalline osmium, contributing to the expansion of secondary and tertiary markets. As these markets continue to grow in the coming years, liquidity will increase, providing added security for long-term investments in crystalline osmium.