The Challenge
The founders of Gold & Silver Standard had been working with investors for a while when they discovered two big challenges in the finance world.
Precious metals like gold and silver provide excellent store-in value and no matter how many fiscal troubles hit the planet, their value can never drop to zero. However, there was no virtual asset in existence that had this quality, nor was there any representation of these hard assets in the digital world. In fact, virtual assets like crypto are so volatile that their value often drops to the negative, resonating panic in the investor community. This also meant investment in cryptocurrencies had too low security for common citizens to invest in it.
Another big issue of the investment world the Gold & Silver Standard developers realised was that traditional institutions refrain from allowing NFTs to be used as collateral while lending. This was quite a counterintuitive idea since NFTs, just like precious metals, have terrific store-in-worth which makes them quite viable long-term assets.
All this led the creators of Gold & Silver Standard to design NFTs that are backed by real-life assets like gold and silver bullions, allowing this crypto asset to avail the security of such precious metals. One can deposit gold or silver in Australia’s high-security vault, Reserve Vault, and mint Gold Silver Pirate tokens against them. The value of these tokens is determined by their attributes fixed with a mathematical formula by the company. This not only makes crypto investments more secure and therefore, inclusive, but also grants a very safe way to increase the value of NFTs in one’s holdings. On top of this, the inventors developed a structure of borrowing against said NFTs to earn interest in gold and silver.
