Gold And Silver Blast Through The Blockchain

I love gold, silver and bitcoin.

So much so that my website URL is actually:

www.StackSilverGetGoldBuyBitcoin.com

Go ahead. Go check it out. Buy something. AFTER you read this article of course

The wars on Twitter over gold and bitcoin are very entertaining.

Some people in the precious metals industry, like Peter Schiff and Jimmy Rickards just can’t stand the bitcoin.

I, along with Silver Guru David Morgan, like them both. Well I don’t know if Morgan loves Bitcoin, but I know he loves one of the precious metals crypto currencies I’m about to go over for you.

Gold has thousands of years of history behind it and is pretty set in its place.

I buy gold. It has been getting smoked lately. But I still buy it.

I’m confident it will come back around.

Who knows what will happen with bitcoin?

It has been around less than 10 years.

I’ve been betting on it for 4 years. It has gotten absolutely smoked way worse than gold lately. Maybe it will crash and burn to crypto ashes. I think it will come back around too. But maybe not.

One thing that seems to be certain though is that the underlying mechanism that bitcoin brought to life is here to stay.

That underlying mechanism is called the blockchain or distributed ledger.

Blockchain technology can be applied to and will disrupt many business niches in the future.

Without getting too deep in the weeds on what the blockchain is, here is a brief video and definition from Investopedia:

“A blockchain is a digitized, decentralized, distributed public ledger of transactions. Constantly growing as ‘completed’ blocks (the most recent transactions) are recorded and added to it in chronological order, it allows market participants to keep track of transactions without central recordkeeping. Each node (a computer connected to the network) gets a copy of the blockchain, which is downloaded automatically.”

So if distributed ledger or blockchain technology is going to upend how business is done in many different niches in the future, could is change the precious metals industry as we know it?

Probably.

At least it should get rid of a lot of the low quality and scam artist precious metals dealers.

Today, I’m going to tell you about two “precious metals on the blockchain” projects.

One in gold and one in silver.

One of these I mention below I consider a GLD ETF killer. The other could be a SLV ETF killer.

Now if I get a ton of emails or tweets from this article, I promise to go more in depth on these two projects in separate articles. But for now here is your overview.

LODE COIN

The goal of the Lode Silver System is to create an new economic system, built on top of the Ethereum blockchain and powered by silver, that is used by millions of consumers and merchants across the world. It is composed of two, asset backed cryptocurrencies.

1: LODE Coin – You get Lode coin by depositing silver bullion into one of the approved Lode Association vaults. Once your silver is assayed and certified to their standards, a smart contract represented by a Lode coin is generated for the amount of silver you deposited. As a Lode coin holder, you will make profits from transaction and exchange fees along with the accumulation of of dividends in the form of AGX coins which can be exchanged for silver bullion or used for trade/commerce with any merchant participating in the Lode Silver System. So when you buy Lode coin, you are investing in the Lode Silver System and the revenue it generates.

2: AGX Coin – AGX coins are created from Lode coin silver bullion deposits. These are the “money” coins that will be used by silver speculators and merchants. AGX coins represent one gram of vaulted silver bullion. AGX can be traded for other cryptocurrencies, used to buy goods and services from participating merchants, speculate on the price of silver bullion or exchanged for physical silver bullion. So you can kind of look at AGX coin as a cryptocurrency that is redeemable in silver bullion.

After each new Lode coin is created from silver bullion deposited into the vault system, a corresponding amount of new AGX coin is issued at the spot price of silver plus fifteen percent. So the supply of silver in the system (AGX coin) is always is always outgrowing the amount of Lode coins. It really seems like a neat system. I hope it catches on. Get some Lode or AGX coin here.

VAULTCHAIN GOLD

VaultChain is a way to own and trade gold bullion on the blockchain created by the biggest, wisest and most reputable minds in the precious metals industry. TradeWind, Miles Franklin Precious Metals, Sprott Inc, IEX Group, GoldCorp and the Royal Canadian Mint are all in on the VaultChain action in one way or another.

VaultChain Gold should start changing the entire precious metals industry. Gold producers and refiners could use it to sell direct to the retail buyers and I expect it probably will be a GLD ETF killer. Well, maybe that’s a stretch. The herd never likes to do too much thinking for themselves so unfortunately there may always be a market for GLD but VaultChain Gold is going to be way better.

Here’s why…

When you buy VaultChain gold, you are buying into real gold at very close to spot price. So unlike Bitcoin, which doesn’t really have anything tangible behind it, you are getting direct ownership and full title to gold added to the blockchain made up of “four nines fine” ounces of gold vaulted at the Royal Canadian Mint.

Some would say the GLD ETF doesn’t have all the gold it says it has behind it either. But even if it does, the average person can’t trade in their GLD shares for real gold. With VaultChain gold, you can take direct possession of your gold whenever you want.

And when I say “gold on the blockchain” I mean custody is determined by a private, distributed ledger or blockchain with real time tracking where the ownership records are cryptographically secured in a database that cannot be changed and can be independently verified at any time. No sneaky bankers involved.

One of the worst things about precious metals ETF’s is that the vast majority of them have management, transaction, exchange and storage fees that chip away at the total amount of gold in your possession over time. Even storing physical gold at a facility like Brinks will cost you cash. There are no management or storage fees with VaultChain gold. In addition, I believe any transaction fees are paid by dealers and not retail buyers.

I’m still wrapping my mind around VaultChain and I promise to write more about it in the future but for now you can check it out at the VaultChain Gold website here or get your digital fingerprints on it by calling up the Miles Franklin Precious Metals team at 1-800-822-8080 and tell them Hunter says you want gold on the blockchain.

Just to be clear…

The advice in my best selling book Stack Silver Get Gold has not changed. My favorite and most recommended way of owning silver and gold bullion is to have your precious metals physically in your possession. But this precious metals on the blockchain thing with both the Lode Silver System and VaultChain Gold looks like it could be my second favorite way to invest in precious metals.

Hunter Riley III
September 2018
City of Big Shoulders, Illinois