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Investing in physical precious metals, such as gold and silver, has been a tradition of diversifying one's portfolio for centuries. However, physical ownership and possession of these assets has its own set of challenges. For example, navigating and selecting the available options, interacting with high-pressure commission salesmen, added storage fees, and more are all potential challenges.
Today we’re in a realm where blockchain technology can help mitigate these challenges.
In this article, we’ll explore the ways in which blockchain interacts with physical precious metals, and how it has already begun to revolutionize the industry.
Traditional Storage and its Challenges:
Investing in physical precious metals like gold and silver offers limited and often risky storage options.
Keeping these assets in a personal safe is virtually an invitation for burglary or theft, compromising the safety of your investment.
Storing them in a bank safety deposit box presents a precarious scenario. If the bank closes, you could find yourself abruptly cut off from your own assets.
Opting for a third-party depository exposes your valuables to additional hazards. Your assets are pooled with others, which presents its own set of risks, and you're faced with steep annual storage fees. Retrieving your metals? Prepare for exorbitant shipping charges.
Blockchain as a Solution:
Blockchain technology offers an innovative solution to traditional challenges in the precious metal investment sector by enabling real-time tracking, secure transactions, and cost efficiencies.
Storage and Accessibility
Entities like Kitco utilize VaultChain which allows you to buy & sell physical precious metals digitally 24/7 with no storage fees. It represents fine gold held physically at the Royal Canadian Mint and uses a blockchain-distributed ledger for data accuracy, real-time tracking, and transparent auditability.
Blockchain also simplifies transactions and settlements in the precious metals sector. Companies like iTrustCapital offer dashboard features, allowing investors to monitor their assets' real-time performance and value 24/7.
Blockchain-based platforms are generally more automated, which lowers the platform’s operational costs and eliminates any need for commission-driven sales representatives. Another benefit is that someone can invest physical precious metals in fractional amounts which opens the door for more people to accumulate these assets over time.
Precious Metals at iTrustCapital
Blockchain technology combined with precious metals is an example of how revolutionary technology can improve older systems. Not only does blockchain tech eliminate the need to take physical possession and potentially lower investors’ fees, but the technology also enables ownership of physical gold in any amount, even fractional amounts!
It is a game-changer for the precious metals industry, making owning physical gold more accessible to more investors.
At iTrustCapital, we've teamed up with Kitco to offer you the opportunity to buy and sell gold and silver directly in your IRA, all of which is tracked on the blockchain.
What's more, clients can buy and sell 24/7 from their personal dashboard all other assets offered on the iTrustCapital platform. These precious metals are fully backed by physical gold and silver, not structured as a security, derivative, future, or any other financial contract.
We offer transparent pricing, no commissioned sales reps, and no overpriced coins. Best of all, there are no storage or management fees.
Interested in learning more about gold and silver? Check out this article.
Why Are Investors Buying Gold?
Create an account with iTrustCapital today!
This article is for information purposes only. It does not constitute investment advice in any way. It does not constitute an offer to sell or a solicitation of an offer to buy or sell any cryptocurrency or security or to participate in any investment strategy.
iTrustCapital is a cryptocurrency IRA software platform. It is not an exchange, funding portal, custodian, trust company, licensed broker, dealer, broker-dealer, investment advisor, investment manager, or adviser in the United States or elsewhere. iTrustCapital is not affiliated with and does not endorse any particular cryptocurrency, precious metal, or investment strategy.
Cryptocurrencies are a speculative investment with risk of loss. Precious metals are a speculative investment with risk of loss. Cryptocurrency is not legal tender backed by the United States government, nor is it subject to Federal Deposit Insurance Corporation (“FDIC”) insurance or protections. Clients do not receive a choice of custody partner. The self-directed purchase and sale of cryptocurrency through a cryptocurrency IRA have not been endorsed by the IRS or any regulatory agency. Historical performance is no guarantee of future results.
Some taxes and conditions may apply depending on the type of IRA account. Investors assume the risk of all purchase and sale decisions. iTrustCapital makes no guarantee or representation regarding investors’ ability to profit from any transaction or the tax implications of any transaction. iTrustCapital does not provide legal, investment or tax advice. Consult a qualified legal, investment, or tax professional.
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