With technology digging deep inroads in almost every niche around the globe, the financial market is experiencing its technology outburst as well. A new and efficient trading technology which has become the buzzword of the town is block chain. It is basically a system, which allows the two parties to carry out their trading procedures in a better and simpler way.
This technology has recently made its debut in the gold trading market. However, most of the investors in the gold trading field are still unfamiliar with this technology, and how it can help them. Let us discuss how block chain is one of the best options you can consider when making your next gold trade.
Trimming Down Inefficiencies:
When it comes down to the share settlement function block chain has a great reputation in cutting down the inefficiencies. The need for auditors to verify all the trades, the custodians to ensure that a fund holds the shares it says it does and the need for clearing the house is removed, and the procedure is made rather easy and simple. This not only cuts and lowers the costs, it also makes the trading risk free.
In order to provide a full percentage of transparency in the equity market, all the participants of a transaction are given full and fledged records and details of the procedure. This not only allows trust to develop between the two parties, but can also remove any risks of fraud there might be in any sort of transaction carried out.
Due to the peer confirmation of each and every trade, the settlement of all the transactions can be made instantaneous. This allows investors to make their shares an increasingly liquid investment, which in return allows the investors to expand their reach as much as they need or want.
Without facing the intermediation of a third party, two parties are given the opportunity to carry out their own dealings. This new trading technology allows investors to avoid oversight of any mediator which might be looking forward to cut a chunk of profit or commission. This not only speeds up the procedures, but can also limit the risk factors in gold trading, whatever they might be.
Fast Transactions and Lower Costs:
Without any doubt, block chain is a technology which can speed up the transactions to an extensive amount. This not just means speeding up the payment, but the data transmission and the paperwork as well. Moreover, the extra and overhead costs for exchanging the assets between two parties is lowered to the minimal amount.
Gold is one of the hotshot commodities of the financial marketplace and the evolution of technology has made its trading even easier. Proficient professionals such as Nakia Geller have made trading and investing in gold a bliss and with the gold trading ATMs as those provided by The Gold Cube, the whole process has been taken to another level.Moreover, with the introduction of block chain in gold trading, the investors have another wonderful opportunity to kick-start and boost their trading careers through robust and efficient techniques.