Diamonds are forever, but another precious metal is becoming crypto’s best friend.
Gold has been a rock solid choice for traditional investors for centuries and now it’s becoming a shining prospect for digital assets.
Speaking at the 2018 Precious Metals Investment Symposium and Digital Gold event held in Perth, Western Australia this week, Metalicoin CEO Jeremy Samuel highlighted the opportunities crypto could bring to the bullion marketplace.“Digital assets, particularly cryptocurrencies and asset-backed tokens are really going to transform the gold trading and marketing ecosystem,” Samuel told Coincast TV.Click To Tweet
Metalicoin is aiming to build the world’s first crypto metal ecosystem, to facilitate global investment in any metal and form.
Samuel said many industries had already started to explore token sales as a way of crowdfunding projects and the gold industry was no exception.
“It will allow a digital replication of physical assets,” Samuel said.
“The great thing is that it (the industry) will be able to combine the store of value of a precious metal with the flexibility of smart contracts and trustless peer-to-peer transactions, so we’re going to see all kinds of innovation in this space.”
For those sitting on gold mines, crypto could also be the ultimate pickaxe.
As an alternative funding option for miners, digital assets could help get exploration projects up and running faster.
“They’ll be able to pre-sell some of their production in order to fund going into production and they’ll be able to write all kinds of derivatives, contracts, in order to secure funding cost-effectively and on a very global 24/7 transparent low-cost marketplace,” Samuel said.
“The upshot from our point of view will be a lot more volume and a lot more liquidity in the market, really bringing gold and precious metals back to its status as real and transactable.”
Also speaking at the gold event in Perth this week Joshua Rotbart, the managing partner of Hong-Kong-based boutique gold trader J.Rotbart & Co, spoke of several other benefits crypto could deliver for bullion markets.
This included heightened traceability, supply chain efficiency, documentation and gold bar integrity, as well as faster trading and quick payment settlements.
“There’s no reason why crowdfunding an ICO couldn’t work for the mining and the gold industry,” Rotbart told Coincast TV.
“We’ve been helping our clients, for example liquidate and move from previous metals to cryptocurrencies much faster and cheaper than traditional banks and wires and so on.”
Rotbart said there was also an upside for those already involved in crypto trading.
“Crypto can be volatile, gold is not as volatile – it’s an asset with a long history, it’s very stable,” Rotbart said.“Gold can also provide stable assets for crypto investors to fall back to.”Click To Tweet
Rotbart admitted some traditional gold players remained wary of digital assets, but like anything new, some people needed time before they took a shine to digital gold.
“I’m a bullion guy so from a traditional gold perspective we’re used to physical tangible assets. Suddenly there’s this crypto thing supposed to be on a ledger somewhere…” Rotbart said.
“It’s a matter of trust and that cryptocurrencies are here to stay.
“I say; don’t be afraid of the technology, don’t be afraid of cryptocurrency. Let’s adopt the technology as far as we need to make our industry better.”
See more of the story on Coincast TV.