Influence of technology and digitalisation (blockchain) on the future of precious materials (gold)

By: HMB Gold

BLOCKCHAIN’S POTENTIAL TO CHANGE THE FUTURE OF GOLD SALES, PURCHASES, AND INVESTMENTS

The use of technology and digitalisation, especially through blockchain, can significantly impact the future of the gold industry. Blockchain is a digital, decentralised ledger that allows transparent and secure record-keeping. It has the potential to revolutionise how gold is bought, sold, and tracked.

Transparency in investment

One of the main benefits of using blockchain in the gold industry is increased transparency. With a secure digital record of every transaction, blockchain enables investors and consumers to easily track the origin and movement of gold throughout the supply chain. This could help ensure that the gold being purchased is ethically and sustainably sourced, and it could also help to prevent fraudulent activities such as money laundering.

In addition to increasing transparency, blockchain can also make buying and selling gold more efficient and cost-effective. For example, blockchain-based platforms can create digital gold tokens, helping investors easily buy, sell, and trade gold without needing physical gold bars or coins. This could make it easier and more affordable for investors to access the gold market.

By creating a permanent, transparent, and secure record of all transactions, blockchain enables all parties involved in the gold supply chain to verify the authenticity and provenance of the gold, as well as track its movement from one owner to another. The use of smart contracts on blockchain can automate aspects of the gold trading process, further improving its efficiency, reducing the potential for fraud, and making the buying and selling of gold more accessible to people.

Levelling the playing field

Historically, gold has been an expensive investment. Not everyone can afford it. However, with blockchain technology and the tokenisation of gold, investment in gold is easier and more affordable. This is because, with blockchain technology and digitalisation, buying a whole ounce of gold is no longer necessary. Investors can purchase just a fraction of digitalised gold, redeeming it whenever they want.

Securing your gold

Digitalisation has also made gold investment more secure by eliminating the need to physically hold the asset. Instead of keeping gold bars in a bank or at home, investors can hold their gold within the blockchain in decentralised and centralised systems. The gold will be guarded and owned by you, and safe from third-party access. It simply means that while investors trade in precious metals like gold, they do not need physical ownership of the assets. Instead, the trade is conducted through reputable dealers and wholesalers who can verify the sale and ownership. It also means that gold investment is impervious to localised events like political turmoil or natural disasters. With the actual physical gold safely locked away, investors can rest assured that their investment will remain safe. Reach out to us to learn about the latest advancements in the gold industry and how they can influence ownership and investments.