FinTech: A golden opportunity
by: Jan Skoyles
By 2020 over £50bn of private wealth will be allocated to gold and half of that will be allocated to physical gold products.
How will fintech facilitate this demand and turn a traditional market into one that is global, accessible and retail friendly?
There are two main ways in which fintech is going to drive, grow and disrupt the global gold market, a market which is hugely opaque and seen as old fashioned yet going through significant changes.
The first is through global, retail exchanges and the second is with blockchain technology.
Both will allow for greater transparency, efficiency and facilitate gold in its truest form — as money.
The gold market is going through a major phase of disruption. For decades, the modern gold market has centred around London’s opaque and old-fashioned OTC market and, more recently, the COMEX futures market. However we are seeing some serious shape shifting going on as the market becomes global due to Asian exchanges making significant leaps in terms of innovation and volume and investors looking for new ways to invest, store and secure their wealth.
High gold demand in the East isn’t all that new, however the levels of demand combined with their increasing presence in the entire gold market, through from supply, to exchanges, to demand, is making headlines.
As well as rapidly diluting the West’s power in the gold market, Eastern investors are becoming increasingly important due to the growing middle-classes. Whilst here in the West we are learning to take control of our money, monitor our investments and learn about new ways to utilise our savings.
Gold is about to become the newest, yet oldest product of financial disruption and fintech is driving it forward.
Editors Notes: This entry has been submitted to the FINTECH Book, the world’s 1st globally crowd-sourced book on FINTECH. Readers that enjoyed this initial abstract are invited to share and like it so that it may be featured in a longer version.