Digital Gold in the era of cryptocurrency

It is possible that in the era of cryptocurrencies and digital technologies, the yellow metal — gold — should have left the scene, but it still performs not only the practical function of storing money, it also has a historical aura. In addition, during the year, the cost of gold rose by 14 percent. How can you earn more by investing in gold?

7 min readJan 28, 2021

During the crisis, the price of gold reached 1,400 euros per ounce (31 grams in ounces). This precious metal is currently worth slightly less at 1,300 euros. “Gold is a lifeline to save money from inflation, or from a drop in their purchasing power,” says Andrey Martynov, Chairman of the Board of INVL Asset Management. The interest in gold in the last year will also increase among the clients of professional brokers. “Over the past two years, more and more gold transactions have been observed on clients’ accounts,” confirms Martins Priede, head of the investment brokerage company Renesource Capital.

Gold rises in price in times of crises and agonizing uncertainty, but falls in price when the economy is flourishing, because at this time money is invested in lucrative projects, commodity circulation, trade, and it is not stored in the form of gold bars. But at the present time, stock indices, which characterize business activity and profitability, are growing more slowly than the price of gold. One of the most popular stock indexes, the Nasdaq 100, increased by 8.8% over the year, but in the last six months it even decreased by one percent, in contrast to this, the price of gold has grown by 14% during the year, and by 11 percent in the last six months.

Although the price of gold is currently not at the lowest level, “technically, gold looks very good,” says Arvid Sipols, chairman of the board of financial market analysis company Nord Capital Markets. In a historical perspective, the price of gold has fallen even lower, for example, just before the economic crisis in 2007, it was 500 euros per ounce. “Trump’s remarks exacerbate the situation even more,” comments Leonid Kiel, head of LK Investments, which is building a money management business in London. “I would recommend investing 20–25% of their funds, which are placed in low-risk assets, in gold,” said Keel. Andrei Martynov joins his opinion: “The larger the capital of an individual, the more he should think about such a low-risk asset as gold.”

Is it the calm before the storm?

Investment bankers speak positively about the possibilities of acquiring gold, but fundamental economic indicators are stable, that is, the world’s largest economies have a slow but steady growth rate, and GDP in advanced economies in the West is growing by 1–2% per year. The European Central Bank (ECB) continues to stimulate economic growth by maintaining low interest rates — 0% — for commercial banks. Commercial banks lend money to each other at a negative rate, thereby encouraging them to lend to entrepreneurs to invest in new projects. Euribor interbank lending rates remain negative for the third year in a row. One of the most popular rates, the three-month Euribor, set its anti-record at minus 0.34 percent. This is something unprecedented in modern economic history. It is not only the ECB that is trying to accelerate economic growth by printing money. At the same time, the European Commission is also stimulating it with the help of the so-called Juncker plan, which provides that by 2020 European enterprises will be able to attract investments in the amount of 500 billion euros. So far, projects have been implemented for only one tenth of this amount.

On the one hand, governments and central banks are purposefully trying to make their economies flourish, on the other, central banks have been buying gold last year, increasing their reserves by 651.5 tons, or about 26 billion euros. This is the largest purchase of gold since 1971, in which the US abandoned the dollar’s peg to the precious metal. Russia does not sell its mined gold, the economic superpower China also buys gold, Arvid Sipols shared his observations of the financial markets.

Who buys gold?

Central banks, which are the largest holders of gold reserves, buy the precious metal gradually, without creating a buzz on the stock exchange. The price of gold has not changed much over the past three years — its value on the stock exchange, depending on the ratio of supply and demand, ranges from 1,000 to 1,300 euros per ounce. There is no simple explanation for the fluctuations in commodity prices on the global exchange, but it is clear that they are affected by any significant conflict, especially between major economic powers.

Concerns about the growth of the global economy in the future, and, as a result, interest in gold, is also fueled by the trade war between the world’s largest economies, manifested in the US efforts to raise customs tariffs on goods from China. Over the past half year, the price of gold in euros has risen by 11%, or, on an annualized basis, by 22%. The basis for instability is also created by paper money, which does not have physical coverage and is used as an instrument of economic influence.

For example, the United States covers its budget of approximately one trillion euros by issuing government debt. The amount of debt increases along with the money supply, but its real coverage does not change. In turn, China, in response to US customs sanctions, uses its national currency, the yuan, that is, devalues it. The weaker yuan makes Chinese goods cheaper in foreign currencies, and this, despite US efforts, encourages Chinese exports.

Digital Gold

Digital Gold is a token on the ETH network that has been tested for security, anonymity and speed. Each digital gold token is equivalent to 1 gram of real gold, 99.99% pure. The manufacturer of this token has provided safe rooms where all of his gold is kept. This means lower maintenance costs. Since digital gold tokens are offered on the ETH platform, their purchase and sale can be unlimited and at a very low cost. On the other hand, there is no tax on this sale. ETH transfers are very fast.

Token GOLD is the best tool for buying and storing digital gold, as it provides complete anonymity and protects your assets from instability and loss of value, they can be easily moved and divided without being tied to a physical process. That is, GOLD tokens do not have a centralized connection with the physical world, they have unprecedented liquidity due to the ability to buy, sell or exchange them 24/7, while all GOLD token holders are guaranteed complete confidentiality. For transactions in GOLD, users only need to specify their wallet address.

Features if interest

The costs of moving or selling gold at the stage are generally low, with customers charged an annual stockpiling fee of 0.99%.

Crypto advertising is exceptionally unpredictable, buying gold gives remarkable stability, arguing that the Gold token speaks of a fantastic expansion of the digital money portfolio.

The difficulties of buying gold come with finding a reliable supplier, some administrative work, etc., and there are many difficulties with safely storing this gold. Digital Gold, in partnership with Chubb Insurance, will help customers store their gold securely.

The digital gold platform is protected from cybercriminals and physical fraudsters.
Customers have to buy and sell many tokens through trades or through the digital gold market. The market is always hospitable.

Security is our concern, digital gold will make the purchase and ownership of the secret, thus hiding the identity of the customers.

Conclusion

GOLD Stablecoin is investing in a profitable venture at a time when global finance is becoming very unpredictable today. From an expert’s point of view, an investment in gold can only be profitable if it is accompanied by a long-term investment plan, but most investors want a quick return. Digital Gold aims to help investors get the fastest possible return on blockchain technology in a very fair and transparent manner.

Website: https://gold.storage/home
Whitepaper: https://gold.storage/wp.pdf
ANN THREAD: https://bitcointalk.org/index.php?topic=5161544
Telegram: https://t.me/digitalgoldcoin
FACEBOOK: https://www.facebook.com/golderc20
TWITTER: https://twitter.com/gold_erc20

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