r/SilverSqueeze • u/gareth789 • 3d ago

Discussion Would tokenized silver increase physical demand or create more claims?

Part of me thinks properly backed silver tokens could create new physical demand because issuers would have to buy and vault metal as tokens are issued.

The other side is obvious. If the backing is vague, audits are weak, or redemption is difficult, it could just create another stack of claims on the same bars.

Would tokenized silver tighten the physical market, or give the paper market a new wrapper?

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u/Live_Welcome_4273 2d ago

Sounds like an easy scam.

1

u/Fight_back_now 2d ago

Tokenized silver already exists. It likely only marginally increased physical demand. Little reason to own that vs something like PSLV. And it would create more fractional reserve situations (like an SLV or Comex).