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From Kitco News:
While the face of the gold market might change in the next 30 years as technology develops, the asset class and its safe-haven appeal will remain solid, according to the World Gold Council (WGC).
In an exclusive interview with Kitco News, John Reade head of market research said that he does not expect gold’s role as an alternative asset and portfolio diversifier to be replaced by another asset like cryptocurrencies within the next 30 years. Reade added that it would take a complete disruption of the entire financial marketplace before gold is usurped as a world-class asset.
“The capital market structure as we see it will probably continue,” he said. “Gold is part of the financial system. It is a mainstream financial asset and it too will continue.”
Reade noted that the remaining question is around the venue where gold is traded – whether its traded in over-the-counter markets, through futures contracts or something else. Reade’s comments come as fin-tech firms develop new platforms for gold, including Tradewind, which has created a new digital platform Vaultchain Gold, which allows investors to buy fractional quantiles of gold. While the market is digital, the platform is backed 100% by physical gold, held by the Royal Canadian Mint.
In a WGC report that looks at the gold market all the way up to 2048, Reade said that so far there is no front runner in the digital gold market but there is growing potential.
“If one (or more) is successful, it could be as big a change to the gold markets as the development of ETFs, but with the added advantage of appealing to younger generations too,” he said.