Why gold is becoming the hottest investment today
Sylvia Carrasco, the Founder and CEO of Goldex, the most sophisticated trading app to invest in physical gold, explains why this precious metal is taking the finance world by storm
For more than a thousand years, gold has been a valuable commodity due to its stability and reliability.
The metal continues to be valuable during economic booms and recessions. Such a scenario was witnessed when Brexit Secretary David Davis quit his post before the Foreign Secretary.
The sterling pound lifted and fell back due to the resignation but not gold. The Pure Gold Company reported that there was a 237% increase in people buying physical gold.
Over half of those who were buying gold were financial professionals who were removing exposure to equities in readiness of financial market volatility due to increases in political unrests.
Most people believe gold is out of reach to them and they usually think it is for wealthy people or private brokers but the figures speak for themselves.
The World Gold Council reported that the global investment demand for gold has grown at an average of 18% per year since 2000 and that the demand for gold is at a three year high.
‘financial professionals who were removing exposure to equities in readiness of financial market volatility’
In 2017 the demand for physical gold was $165 billion of which $42bn were investments in bars and gold coins. Gold is becoming mainstream.
Gold vs cryptocurrency
Although cryptocurrencies have made it to the headlines, its value has demonstrated a strong volatility and unpredictability. In just one year, during the period of March 2017 and March 2018, bitcoin underwent an alarming variability in its price of 560 per cent while gold remained steady with a variability of just nine per cent.
Additionally, more than 1,000 cryptocurrencies have folded since block chain mania began, with investors losing billions to failed crypto-projects, says Olga Kharif on Bloomberg.
Only 8% of tokens sold in initial coin offerings (ICOs) went on to be successfully traded on exchanges, according to analysis by ICO adviser Satis Group – 81% of ICOs were scams, 6% failed and 5% have since “gone dead”. Of the 8% trading, a third is “dwindling”.
Gold, a reliable asset
Gold has earned the trust of many because of one word. Reliability.
The precious metal has many of the key features sought by cryptocurrency enthusiasts: universal acceptance, the total amount is determined and, of course, it’s a refuge for wealth.
We could say that gold is the ultimate cryptocurrency because: it’s decentralized (meaning it does not carry a counterparty risk), it’s limited and extremely secure unlike digital assets, it has been used as a currency and as a protector of wealth for thousands of years and it has demonstrated that, despite volatility, it maintains its constant purchasing power overtime, being unaffected by inflation.
‘We could say that gold is the ultimate cryptocurrency’
Factors such as changes in consumer preferences, technological disruptions or crackdowns by a government could easily kick cryptocurrency out. Britain’s gold market is at its best today as financial experts describe. The Royal Mint estimates that there is a four-billion-pound of untapped demand for gold investments in physical gold bars and coins.
After payments, retail banking, insurance and financing, now it’s the turn of gold investments.
There is no coincidence that The Times has just published an article on their weekend edition entitled ‘Rush for gold is about to begin’, where it explains the reasons why Financial Advisors are increasingly investing a percentage of their clients’ money in gold investments.
This growing appetite for gold can be seen in cities such as London, that has embraced a FinTech revolution.
New FinTech innovation is making it easier, cheaper and accessible for anyone to be able to own the world’s oldest, most reliable and most trusted monetary asset. Gold is now becoming a hot investment vehicle that, thanks to digitisation, advanced data and mobile connectivity, can now be accessed by people from all walks of life.
Goldex is a new breed of gold provider that is reinventing gold ownership by being the first player in the market that does not own gold and that routes all clients’ orders to the largest global peer-to-peer gold exchange in five international vaults (London, Zurich, New York, Toronto and Singapore). This business model makes Goldex the first “ethical” provider in the market: prices are never manipulated or inflated; clients have the certainty that they always
receive the best possible execution price; any chance of committing market abuse, front running or price manipulation by Goldex is instantly removed from the equation.
For more information visit the website: https://goldexapp.com
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