Tuesday iTrustCapital, an investment platform for alternative assets in retirement accounts, said that it launched a new service that gives its customers access to physical gold through a digital marketplace.
The investment firm explained that clients can place trades through iTrust’s interface. The trade is executed through precious metals deader Kitco Metals. The client’s ownership of the gold is recorded through Tradewinds VaultChain technology, a ledger system using blockchain technology. The physical gold securely stored at the Royal Canadian Mint.
iTrust noted that the digital assets are 100% backed with physical metals and deliverable upon request through iTrust’s service.
“As world governments print ever-growing amounts of money, millions of Americans seek ways to protect their wealth in a system stressing itself to the limits,” the company said in a press release. “Even though investors have billions of capital in Gold ETFs like GLD, many others distrust these traditional financial offerings. They want the added security of knowing the gold exists and is tied to an account in their name.”
The company noted that holding physical gold within a digital marketplace removes a significant hurdle for investors holding gold in their retirement accounts: the cost. The company said that fees related to transporting and storing gold can exceed 30% of the order’s value.
“I’ve been involved in the gold IRA space for more than a decade. iTrust’s solution to investing in physical gold in IRAs is by far the best option for investors,” said Blake Skadron, Co-founder & Chief Operating Officer at iTrustCapital. “Clients get all the benefits of owning gold and avoid the pitfalls of other IRA models such as paying high markups, dealing with commission sales reps, or suffering from inferior liquidity when it’s time to sell.”
In an interview with Kitco News in April, Michael Albanese, CEO of Tradewind Markets, said that he is pleased with how the digital gold market has grown over the last two years. The idea of digital gold, which can be fractionalized into any amount, has also been embraced by some of the major gold producers.
VaultChain directly connects consumers and investors with precious-metals producers, custodians, market makers, dealers.