Finance News

Why You Should Invest in Tokenized Gold 

Throughout history, gold has been a popular choice of investment. For several generations, it was even the preferred medium of exchange. Gold was money, and for great reasons: durability, scarcity, and malleability. Its intrinsic value has also seen it survive many global economic recessions (1975, 1982, 1991, and 2009).  For comparison, fiat currencies have depreciated over time with many countries recording high inflation rates and an annual decline in purchasing power owing to such factors as economic instability, political unrest, hyperinflation, and corruption. This has kept gold’s value against fiat currencies at an upward trajectory. Many countries have gold reserves serving as a safety net against economic downturns. Ideally, everyone should have the opportunity to invest in gold. 

Preserving wealth by investing in gold should be a no-brainer but the reality paints a different picture as in recent times investing in such precious metals has been reserved for a closed elite class consisting of High-Net-Worth Individuals (HNWI) – this due to major challenges such as lack of transparency and accessibility; storage and transportation issues; tradability and outdated middleman practices that have alienated potential gold investors. Investing in spite of these issues will require deep pockets far beyond the reach of the average person. While gold has remained the holy grail of commodities, the traditional gold markets feel anachronistic, an antique whose place in the modern world is ornamental.

Aurus, a UK-based company has modernized the traditional gold markets through its tokenized gold offering – AurusGOLD (AWG). Tokenizing gold put simply involves converting physical gold into digital assets and tracking it in on a blockchain. A blockchain is a distributed ledger without a central control that facilitates the recording of assets in a transparent, permanent, and unhackable way. It’s the technology behind cryptocurrencies like bitcoins created to serve as an escape from the fundamental disadvantages of fiat money. Aurus has turned gold into a cryptocurrency that is 100% backed by physical gold, audited, and stored in accredited vaults.

Anyone regardless of financial status can now invest in the gold market by buying micro or macro amounts of digital gold from Aurus partnered precious metals dealers and crypto exchange platforms with added benefits such as trading and interacting with other digital assets. Unlike the traditional gold market, having your gold assets on the blockchain is inherently transparent with all of your gold assets trackable in real-time. Owning AurusGOLD represents and guarantees full ownership of physical gold that can be transferred instantly to anyone. 

Through its independent partner vaults and other partners in the Aurus ecosystem, each AurusGOLD token is redeemable for 1 gram of gold which is accredited by the London Bullion Market Association (LBMA) – the global authority on precious metals.

AurusGOLD has also proven attractive for cryptocurrency investors for use as a stablecoin to cushion the effect of extreme price fluctuations of speculative crypto assets like Bitcoin, and Ethereum. Just recently, on April 18 the crypto futures market experienced a historic number of liquidations in excess of $10 billion. Stablecoins are designed to stabilize the market by pegging their value to other assets. Traders can avoid losses by storing profits away in stablecoins. But the majority of the stablecoins in the market are backed by fiat currencies like Dollars and Euros creating an illusion of stability while assets depreciate in direct proportion to the underlying fiat currencies.

Preserving your wealth and assets through stablecoins backed by precious metals like gold is a much better long-term strategy. Although AurusGOLD is not a speculative asset, it can increase the valuation of your investment portfolio since precious metals historically experience frequent uptrends, averaging an annual return of 11.2% since 2001.

Aurus has now expanded its tokenization of precious metals beyond gold, starting with the introduction of AurusSILVER (AWS) and the soon to launch AurusPLATINUM (AWP).

For more information, visit Aurus.io

Jelle Rijnink

Marketing Director, Aurus | Bachelor of commerce graduate specializing in marketing and management. Jelle has been actively involved in the blockchain space since early 2017, before joining Aurus.

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Jelle Rijnink

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