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RE: Royal Mint trading gold using blockchain technology.
This is what they meant over last few years gold to go to $10,000 an oz this is all planned, who used to own Royal Mint, Rothschild, the dots are lining up
It looks to me to be tied directly to Spot Price, rather than some new speculative cryptocurrency. There is always a chance that the demand for this gold-backed RMG will expose any shenanigans people are pulling over paper PMs, calling out any manipulation and levelling off the true values over time.
My gut instinct is that it's just a 'cool kids' way to buy paper gold which they store for you, but with blockchain transparency, security, and speed of trade (I haven't looked yet to see how they involve themselves in p2p trading, fees or admin wise).
They already had something like this for years [?] with their secure vault service, but they were charging you to store the gold-backed physical grams while you stared at your digital account balance and one day asked for it to be delivered (at a fee of course). From what I can see.. they don't charge for vaulting any more, which is the main incentive I think. They just packaged that incentive as a trendy new digital wallet?
Will read more.
what you have to understand is the RMG coin is 1 coin = 1 gram of gold, gold at the moment is £30.91 per gram, say it goes to £50 per RMG or £500 RMG thats what price it is a gram, so if it takes of so will gold, simple, that what I see thats the salesman in me better than sliced bread.
Right. Tied to spot.
But can the gold-backed RMG ever become more in demand than its physical counterpart, gold itself? Could the crypto version of gold pull real gold up by its own boot straps, so to speak? And drag the physical per ounce price higher?
I wonder if RMG will always be anchored to the gram cost as its parent, rather than the other way around. Even if the alternative isn't a direct causality, but more of a popularity based demand increase.
From what I understand from the factsheet, RMG can have a premium over gold.
What I don't understand is "Royal Mint [...] will endeavour to buy back any RMG if the trading price falls below the spot [...] for more than 24 h". Does that mean they can forcibly buy back your RMG even if you don't want to sell because the price has been manipulated??