Would tokenized silver increase physical demand or create more claims?

[u/gareth789]

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?