You know guys, there's a cryptocurrency backed by gold (other than Digix) called Xaurum that hardly anyone knows about.

http://www.xaurum.org/

Seems like a much smaller scale than this project but it's basically the same thing right? I don't know how it actually works, apparently it has positive inflation, meaning that every minted coin is used to purchase actual gold that can be redeemed therefore increasing the overall value of each token.