by It’s been over 5000 years since Gold was first discovered on our planet but continues to inspire renewed awe year after year as its market value continues to witness a steady rise. This birthed the culture of gold accumulation for reasons ranging from ornamental to being used as a financial instrument and hedging tool in the face of global economic uncertainties.
Even though gold no longer backs fiat currencies today, its place as a financial support system and universal symbol of wealth is forever enshrined in our collective psyche as it has successfully preserved its wealth through thousands of generations. Accumulating the precious metal hasn’t always been straightforward.
For many years, growth and innovation inertia in the traditional gold market have confined interest in gold accumulation to an older demographic as the younger generation prefers wealth creation methods that are more consistent with today’s advancing digital tech. Cost-effectiveness, liquidity, ownership, transparency, and convenience are some of the paramount concerns of the average gold investor. These gaps have necessitated the current wave of development in the gold market leading to the introduction of several viable gold accumulation alternatives. Armed with the right information about these available options can help you make the best decision.
Physical gold holdings represent the original method of accumulating gold and it involves purchasing physical gold as jewelry, bars, and other tangible forms that guarantee 100% ownership of the asset. But this method is increasingly becoming old-fashioned due to its many attendant challenges. It is ultraexpensive and highly inconvenient for the everyday person due to the associated cost of ensuring minting, physical delivery, and long-term safety of the gold.
Its indivisibility and unsuitability as a medium of exchange also make physical gold holdings further undesirable. Paper gold assets were soon heralded as an alternative method for gold accumulation. These assets reflect the price of gold and present the opportunity to participate in the Gold market without actual ownership of the metal. Todays market is filled with several examples of paper gold assets including ETF (Exchange Traded Fund) companies that purchase gold on the customer’s behalf; Sovereign Gold Bonds (SGB) issued by the government; Gold certificates; Future contracts; and Gold-mining stocks.
All of these represent a much-needed escape from the cons of physical gold holdings. It is cheaper and easier to access with the promise of instant liquidity and potential for earning dividends. New investors are also encouraged to participate in the gold markets because the entire process is less overwhelming. Bye to freight and storage costs. Paper Gold assets like ETF also mean individuals are not required to investigate their insurance options. But there are other costs. Counterparty risk, expense ratio, broker commissions, and tracking errors are omnipresent concerns when considering ETFs on the stock exchange.
ETFs may also not have their entire share backed by gold. There is more. Future Contracts are not beginner-friendly due to their high-risk nature. Gold-mining stocks leave you vulnerable to the uncertainties surrounding the issuing mining company. Remember gold certificates are only as good as the company backing them. It is also worth reiterating that ownership of paper gold assets does not entitle users to physical gold. Neither does it guarantee the opportunity to automatically redeem paper gold for physical gold especially if it is in short supply. Users run the risk of losing their assets in the event of the issuing company’s dissolution. These challenges have made using paper gold methods of gold accumulation unsuitable and uneconomical for small-time gold buyers.
Digital Gold to the rescue
Digital gold is an improvement on paper gold and physical gold holding allowing anyone to transact and accumulate physical gold in a convenient and cost-effective method. Digital gold is backed by actual physical gold and is redeemable although liquidity differs from one provider to the other. Because of its direct proportionality to real gold, users enjoy benefits akin to purchasing physical gold but with fewer of the hassles and demerits. Digital gold assets are highly divisible and liquid with the possibility to purchase small quantities easily.
Depending on the Digital gold service, lack of storage cost, the possibility of earning dividends, and guaranteed safety and purity are some of its other perks. But it’s not all sunshine and rainbows. Many Digital gold issuing companies have exposed users to management, data security, counterparty, and exchange risks. But the advent of blockchain technology and cryptocurrencies has presented the opportunity to solve many of the challenges associated with digital gold, and tokenized gold or crypto-backed gold alternatives are now objectively the best methods of gold accumulation in todays market.
Tokenization of gold on the blockchain ledger eliminates storage and transport problems as well as the bureaucracy associated with previous methods while guaranteeing ownership of actual gold. These stable coins allow you to accumulate and trade gold easily and independently of third parties although it is worth mentioning that many gold-backed stable coins offerings in the market still struggle with price stability issues, liquidity issues, lack of transparency, and other problems resulting from a centralized structure.
Aurus company is one of the few exceptions in the market today that do not struggle with these underlying issues and represents the best available method to accumulate gold standing head and shoulders above the rest. Its non-centralized structure enables it to fully exploit the benefits of the blockchain technology it employs.
AurusGold is redeemable for physical gold and represents a full ownership of the asset 1:1. What’s more, it is perfect for gold accumulation as it gives users access to wholesale prices of gold and vaulting services through the Aurus decentralized network of partners and distributors. With minimal transaction costs, AurusGold is highly divisible allowing small-time gold buyers to trade cents worth of gold anywhere and anytime with zero market downtimes.
Even in the event Aurus Company ceases to exist, the investor retains ownership of the gold. Aurus’ payment gateway also facilitates peer-to-peer transactions on the blockchain — no middleman, no problem.
AurusGold is indeed the actualization of every gold accumulator’s dream.
Buy AurusGold today.
Note: The above article is based on my objective research. There are no affiliate links and I will not receive commissions whether or not you invest in AurusGold.
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