(Kitco News) – Although the precious metals market will be able to survive the current downward trend, the market must ultimately adapt if it wants to connect with the untapped potential of a generation of more young investment, according to a fin-tech executive in precious metal
In its constant aim to democratize the precious metals market, the new fintech startup Tradewind said that it is preparing to add physical silver to the its digital trading platform. The announcement comes six months after the launch of its digital gold product.
Fraser Buchan, co-founder of Tradewind, stated in a telephone interview to Kitco News that this is a natural evolution of the company's ultimate goal of creating a blockchain-based digital market for the entire precious metals sector. He added that they are trying to add silver to the platform by mid-September.
"We are listening to our reseller network that there is a growing demand from their customers to include silver on the platform," he said.  In addition to including physical silver on the platform, Buchan said the company has been extremely active since launching in March as its size and global network grows. He added that the company is preparing to open an office in London and is considering the opportunity to expand in Asia.
"It has been intense six months and we are satisfied with how our network of customers and dealers has grown"
While investors are currently struggling with a lackluster interest in gold, with prices that cost about $ 1,200 an ounce, Buchan claimed that the main threat to the market is the outdated investment structure.
The silver market has suffered even more than gold, with the gray metal now trading near the lowest level since January 2016. September silver futures traded at $ 14.740 the ounce, down 0.18% on the day.
"The focus of the opportunity we see is that the demographic data in the gold market is very unfavorable and we see an industry as a whole that has not adapted," he said. "Commodity markets will go through boom and bust cycles, but making the market more attractive to a new generation of investors is about ease of use and costs."
Buchan added that the increase in bitcoin popularity is partly due to investors ease of access to the market. He added that blockchain technology has the potential to bring new excitement to the precious metal space.
Tradewind's blockchain platform, called VaultChain, directly connects consumers and investors with precious metal producers, custodians, market makers and retailers. The physical gold and silver traded on the platform are kept in the Royal Canadian Mint vault.
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