28.04.2021Read Time: 4 min

Why You Should Invest in Gold-backed Crypto Tokens

Throughout history, gold has been a popular choice of investment.

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Throughout history, gold has been a popular choice of investment. For several generations, it was even the preferred medium of exchange. This is because gold was money, and for great reasons: durability, scarcity, and malleability. Its intrinsic value has also seen it survive many global economic recessions. 

For comparison, fiat currency collapses are more common. They have depreciated over time, with many countries recording high inflation rates and annual purchasing power declines due to economic instability, political unrest, hyperinflation, and corruption. This has kept the gold supply value against fiat currencies on 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. 

The Challenges Of Investing In Gold

Preserving wealth by investing in gold should be a no-brainer, but reality paints a different picture in recent times. The ability to invest in the gold market has been reserved for a closed elite class of High-Net-Worth Individuals (HNWI). This is due to significant challenges such as lack of transparency and accessibility, storage and transportation issues, tradability, and outdated middleman practices that have alienated potential gold investors.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 average person's reach. 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. Thankfully, with tokenized gold-backed cryptocurrencies, investing can become way more accessible. 

Pathing the Way With Gold-Based Cryptocurrency Tokens

Aurus, a UK-based company, has modernized the traditional gold markets through its golden token offering – AurusGOLD (AWG). Token Crypto backed by gold simply involves converting physical gold into digital assets and tracking it on our metal-backed blockchain protocol. 

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. For example, Aurus has turned gold into gold stablecoins that are 100% backed by physical gold, audited, and stored in some of the most secure vaults in the world.

Anyone, regardless of financial status, can now invest in the gold market by buying micro or macro amounts of tokenized crypto 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 markets, having your gold assets on a metal-backed blockchain protocol is inherently transparent, with all of your gold assets trackable in real-time. In addition, 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.

You might wonder, "Is gold a good investment in 2022?". The short answer: yes. 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. Gold 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 gold-backed crypto tokens 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). 

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