Tradinovation Project is an initiative by A. G. Metals Ltd., which has been engaged in the field of precious metals since 1996. It comes in light of the rapid global changes, and the creation of new opportunities in traditional worlds, that the digital world brings with it.
In view of the digital transformation that we are all going through, we have set ourselves the goal to gather and make accessible products and opportunities related to the field of precious metals. We try to “tie and connect the atoms with the bits” to create “new elements”.
The combination of the words Tradition and Innovation creates the compound word “Tradinovation“, a connection between old and new, between conservative and modern.
The world of precious metals, and especially gold, has been with us for thousands of years – a physical object, which is a sign of economic security and stability, the basis for “currencies” and barter.
The “blockchain” technology and the “cryptographic” coins are the complete opposite – new, decentralized, abstract, untouchable, and difficult to understand its value.
The value of “cryptographic” coins is about $2 trillion, which is 15-20% of the value of all the gold in the world (about 200,000 tons).
Cryptographic coins backed by precious metals – are a product that combines the two opposing worlds, and are part of what is called Stablecoins, a currency backed by or linked to a standard currency (FIAT) or commodities.
Coins backed by precious metals – gold (Au) platinum (Pt) and silver (Ag) are coins whose value is linked to the precious metal, for example – for each AWG (gold-linked) type “crypto coin”, 1 gram of gold is deposited and kept in a safe.
The gold is also decentralized – it is locked in safes of neutral parties (such as “Brinks”) in various parts of the world.
Advantages of using “crypto coins” backed by precious metals:
- Option to buy and sell quickly
- Purchase of small quantities at a fixed price and without associated costs (which is not possible in the physical world)
- In most countries, VAT has to be paid for precious metals. Therefore, the cost of metal is more expensive
- Saves the need for a safe / insurance / fear of theft
- The value of the currency is stable and is not subject to the fluctuations and instability of the virtual world
- Possibility to convert the “crypto coins” to physical metal or to regular currency (FIAT)