Even though, the precious metals market will be able to survive its current downtrend, ultimately the marketplace needs to adapt if it wants to connect with the untapped potential of a younger investing generation, according to one precious metal fin-tech executive.
In its continued goal to democratize the precious metal market, new fintech startup Tradewind said that is it preparing to add physical silver to its digital trading platform. The announcement comes six months after launching its digital gold product.
Fraser Buchan, co-founder of Tradewind said in a telephone interview with Kitco News that this is a natural progression of the company’s ultimate goal to create a blockchain-based digital marketplace for the entire precious metals sector. He added that they are looking to add silver to the platform by mid-September.
“We are hearing from our network of dealers that there is a growing demand from their customers to include silver on the platform,” he said.
Along with including physical silver on the platform, Buchan said that the company has been extremely active since launching in March as it grows its footprint and network globally. He added that the company is preparing to open an office in London and is looking at opportunity to expand into Asia.
“It has been a busy six months and we are pleased with how our network of customers and dealers has grown,” he said.
While investors are currently struggling with lackluster interest in gold as prices struggling around $1,200 an ounce, Buchan said that main threat to the marketplace is outdated investment structure.
The silver market has suffered even more than gold, with the grey metal now trading near its lowest level since January 2016. September silver futures last traded at $14.740 an ounce, down 0.18% on the day.
“The core of the opportunity that we see is that the demographics in the gold market as being very unfavorable and we see an industry as a whole that hasn’t adapted,” he said. “Commodity markets will go through boom and bust cycles but to make the market more attractive to a new generation of investors is about ease of use and cost.”
Buchan added that the rise in bitcoin’s popularity was in part due to investors’ ease of access into the marketplace. He added that blockchain technology has the potential to bring new excitement to the precious metals space.
Tradewind’s blockchain platform, called VaultChain directly connects consumers and investors with precious-metals producers, custodians, market makers, dealers. The physical gold and silver traded on the platform is stored in vaults within the Royal Canadian Mint.
