The Marriage of Gold and Crypto: A Match Made in Investment Heaven?

One the of the world’s largest gold-producing companies is working with blockchain to stabilize virtual currency trading and, in time, to monetize the value of billions in currently stored gold.

The company, Vancouver’s Goldcorp, will back cryptocurrency transactions with physical gold held in an vault at the Royal Mint in Ottawa.

As an initial step, Goldcorp invested 3,000 ounces of gold valued at $4 million into New York tech company Tradewind Markets “Vault Chain” platform.

Vault Chain then essentially digitizes the gold to allow for more efficient selling, investing and tracking of precious metal transactions.

Dave Stephens, Goldcorp’s vice president of corporate development and marketing, is enthusiastic about Vault Chain’s debut.

“Gold is mostly mined in the ground and put back in a vault,” Stephens said. “This makes it easier and more accessible for investors to directly own gold,” said Stephens.

Using Vault Chain as a public ledger will allow for reliable transaction records, according to the the companies.

Matt Trudeau, president of Tradewind, predicts that Vault Chain will change how gold is transacted.

“We believe that our technology will enable gold producers like Goldcorp to overcome existing limitations and move into the electronic age,” Trudeau said.

Stability

Vault Chain transactions are financially backed by a one-to-one ratio of gold at the Royal Canadian Mint. This change, they companies predict, will help create more stability for cryptocurrency investors.

“Physical gold stored on a blockchain will increase the utility of the commodity and, ultimately, drive value in the price of gold,” said David Garofalo, CEO and president of Goldcorp.

“We believe Tradewind has the potential to change the gold investment industry like the introduction of ETFs (exchange traded funds) did over 10 years ago,” added Garofalo.

Tradewind executives say that current gold transaction settlement times take too long to finalize. Nor is there isn’t enough transparency in such transactions.

Vault Chain’s Blockchain, accessible only to members, will record “forgery proof” ownership details, the company asserts.

Stephens suggested that there could be no ceiling to the amount of gold that could be sold via Vault Chain.

“I don’t think there’s an upper limit,” he said. “In theory, this could go global and we could put all of our gold on this platform.”

dividend stock investing

Make Money While You Sleep with Dividend Stock Investing

Famed investor Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." Dividend stock investing is a exactly

5 Ways to Slash Your Food Spending and Save Money

The average American spends up to 10 percent of their disposable income on food, according do the USDA. Things are likely different due to the coronavirus, but the typical divide

cooking books

Cooking the Books? How to Know When Companies Boost Earnings Artificially

Experienced investors have heard of now-bankrupt companies such as WorldCom and Enron. Both participated in scandalous accounting schemes. Neither company exists today, but each left a trail of losses that

Potential for Triple-Digit Gains in This Strong Tech ETF

When the select sector SPDRs first launched the telecom sector was considered one of the 10 main economic sectors by Standard & Poor’s. However, this was also the time of

airline stocks

A Bet On Airline Stocks Could Pay Off Big

Patience will be required … but good things come to those that wait! The travel industry has been decimated by the restrictions put in place around the world in an

Are We in a Bubble? How to Hedge Your Portfolio Against Steep Sell-offs

Financial bubbles and bursts are difficult to spot and time. Professor Robert J. Shiller's chart of historical S&P 500 price to earnings ratios is a yardstick for U.S. stock market

Analysis: Markets and the Economy Boom Under Democratic Presidents. But Why?

An interesting report caught my eye this past week regarding the economy and markets under Democratic versus Republican presidents. One would intuitively think that under the latter, economic growth and

Options Calls vs. Puts: What’s the Difference?

Options are nothing more than a contract with a specified premium, strike price and expiration date. Unlike buying and selling stocks or funds of stocks, options provide almost an endless

Most Investors Should Just Forget About Alpha

How would you like to have an "edge" in the stock market? The vast majority of investors would love to find one, of course, and many constantly seek advantages to

Expect Another Big Move from Big Lots

Discount retailer Big Lots (BIG) appears to be benefitting from the current economic environment. The company reported earnings on August 28 and it saw earnings per share jump to $2.75

transfer cryptocurrency

How to Safely and Securely Transfer Cryptocurrency

In today’s fourth article in this five-article series, I’d like to introduce you to the often-confusing universe of cryptocurrency addresses. In the first article, I showed you how to get

warren buffett gold

Warren Buffett Bought Gold? Hold Your Horses There…

Warren Buffett, the famed billionaire investor, has changed his thinking on gold and invested in the yellow commodity. Rather, that’s what the media headlines would have you believe. What is