Gold has proven to be a valuable investment throughout history and it’s still attracting investors who want to protect their wealth against the ravages of inflation or unstable government. While paper currencies lose value over time, gold retains its value and actually increases in value during inflation. This is because, when hit by inflation, investors rush to sell their dollars in favour of gold. As a result of the increased demand, the price of gold goes up.
In addition to helping people preserve their wealth, gold also makes for valuable family heirlooms. After all, genuine gold does not tarnish over time. Rather, it retains its shine, making it the perfect gift to hand down from one generation to the next. In fact, many families traditionally give gold as gifts to commemorate milestones such as marriage.
How do I buy quality gold?
If you’d like to invest in gold, you can easily walk down to your neighbourhood jewellery store and buy some gold there. However, it’s always important to make sure you’re buying from a genuine jeweller. Some people opt to pay a little more and buy their gold from a bank because it comes with a certificate of guaranteed quality. If you’d prefer to go the easy route and buy your gold from a market, make sure you ask the seller whether they’d be willing to buy the gold back from you at a future date. Their answer will give you a good idea of the quality of gold they’re selling to you.
What if I want to sell my gold?
Thankfully, gold is always in demand all over the world. Moreover, it’s very liquid – you can get hard cash for it as soon as you find a buyer. Even better is the fact that your gold will always sell at spot gold price. Regardless of whether you’re selling old gold or new gold, you’ll get the same price on the market. Some people attach sentimental value to their gold, and they don’t want to sell it off completely, but they still want to earn some money from it. If you come upon tough times but you don’t want to give your gold away, you can take out a loan against the gold from a bank, then buy the gold back when you’re back on your feet.
How investing in gold cryptocurrency products can protect your wealth
Several factors contribute to Bitcoin’s value, including its applications as a payment system, its limited supply, and, most importantly, its decentralization, without which the other qualities would lose their appeal. Nobody can get their hands on it to control it; there is no central server that a hostile power could monopolize. Instead, the transaction database (the blockchain) is distributed across the network in thousands of copies. This is also the case with gold, which served as a model for crypto-currency and was inspired by its characteristics (means of payment, a quantity that increases little from year to year as it is rare). While gold is considered a centralized asset due to its link to currencies and banks, it has now been linked to the relatively new cryptocurrency industry.
Fearful of the massive debt and currency debasement in recent years, millions of investors have flocked to crypto and gold as places to store their wealth. A fundamental distrust of human power and claims to authority, backed by historical lessons, is at the core of this shift. History presents a series of cycles of the same stories told under different names and in other places. Both see their preferred asset, whether it’s cryptocurrency or gold, as a way to safeguard their wealth and purchasing power. It’s easy to understand why. With a 2% inflation rate, it takes less than 25 years for a currency to lose 50% of its purchasing power. As a result, the rise of cryptocurrency and the continued popularity of gold are understandable and logical. In fact, the conflict between the two parties was illogical.
Gold and cryptocurrency exist outside of the traditional financial and, more importantly, political systems. Both have decentralized pricing, are finite (at least most cryptos are), and can be used as a store of value and a future medium of exchange (as crypto volatility declines and as both crypto and electronic, physical gold become more common). As a result, the conversation is rapidly shifting. Rather than pitting themselves against each other, perceptive investors are taking a more nuanced approach. The debate is no longer about gold vs. cryptocurrency. Both contribute to hedging the risk of inflation, with a long history of certainty.
GoldPesa has launched a gold-backed token with unique tokenomics
GoldPesa has launched a gold-backed token that trades at a premium and generates wealth for token holders in the same way that Bitcoin does. Each GPX token is driven by unique tokenomics to ensure exponential wealth accumulation while being backed by 1 gram of gold stored in a secure vault.
The cost of a newly minted GPX token is spot price of gold + 1%. GoldPesa invests half of this 1% fee into a proprietary intelligent trading strategy called the PAWN. Profits generated by the PAWN are used to buy back and burn the GPX token from the market. In this way, GoldPesa both creates demand and reduces the supply of GPX token at the same time. This increases the value of GPX for token holders.
Using innovative financial engineering and quantitative science, the GPX token turns gold into a value-generating asset class without encumbering the gold. The token achieves this through a buyback using profits generated by the proprietary artificial intelligence trading algorithm.
GPX gives customers the benefits of physical ownership with the speed and mobility of a digital asset. In addition, token holders can have fractional ownership of physical bars and the upside of the crypto markets. This makes GPX a hybrid gold-backed token with upside and not a stable coin.
For more information about GoldPesa, click here.