Gold is a stable asset that has preserved wealth for centuries, while fiat currencies have lost significant value.
Inflation is eroding the value of fiat currencies, leading to increased interest in alternative assets like gold and cryptocurrencies.
Gold-backed NFTs from SwissGold provide a secure and accessible way to hold and trade gold, offering an alternative to traditional gold buying.
Gold is not bought to create wealth, but to preserve wealth. Gold is the most value stable asset on the planet and has been used for centuries as a store of value and a means of payment.
It may not be so obvious if you look at just a short period of time. But since US President Nixon abolished the gold standard in 1971, all major fiat currencies have lost more than 90% of their value against gold. The dollar has lost as much as 97% of its value against gold, and even the Swiss franc has lost 70% of its value against gold.
With recent massive money printing frenzies – the quantitative easing after the 2008 financial crisis, during and after the 2020 Corona plandemic, and now with the Ukraine war and the raising of the U.S. debt ceiling – trillions more dollars have been printed in just a couple of years.
While the price of gold is being kept artificially low using derivatives to make it unattractive, real assets have already begun to appreciate against fiat currencies, leading to the inflation we see and feel today. Average consumer prices in the Western hemisphere have risen by over 16% compared with the 2020 base year, while individual items such as food prices have even increased by more than 30%. The cost of electricity, gas and other fuels has also risen significantly, with now almost 15% higher than in the 2020 base year.
Inflation is transitory, they said
Central bank officials have been claiming for three years that inflation is only temporary. But your $100’000 from 2020 are now worth only $87’000 in 2023.
With the money-printing frenzy, the debt burden in all Western economies has risen massively, and many market participants wonder whether the current dollar-based debt system might not eventually collapse.
And since many people see the crypto space, and Bitcoin in particular, as the best money alternative – since it is debt-free, decentralized and cannot be monopolized by any state – massive value outflows have left the fiat system in favor of crypto assets. The outflow is so massive that banks have now started to limit withdrawals to crypto and also to cash to keep retail savers away. Meanwhile, he big fish have started investing heavily in Bitcoin.
Gold as insurance policy
Something similar is happening with gold. In the global East, central banks, especially China’s and Russia’s, have massively increased their gold holdings. Many people have started buying physical gold to hedge their assets against inflation. While crypto markets are very volatile, gold is not. Gold is the best insurance in case of a crisis, hyperinflation, war or natural disaster.
Gold can always be sold or traded – no matter what happens and no matter what the state of the current financial system.
But paper gold may not do the trick. It is estimated that up to 100 times more gold is traded on paper than is physically available. This paper gold market is essentially a way for US banks to keep the price of gold in check in the face of the massive monetary expansion of the recent years. For now.
In the event of a crisis, it will no longer be possible to control the price of gold, nor will the paper gold issuers be able to deliver the physical gold. If all parties demand delivery, it will be impossible for the warehouses and short players to meet their obligations, and many investors will be left behind.
That’s why it’s important to hold gold in physical form. But physical gold is cumbersome to transport and presents a security problem if you have physical bars lying around. And do you trust your bank to hand over the contents of your safe deposit box during a major event?
How about a solution without gatekeepers who can block your access or freeze your holdings? Physically allocated gold, but managed digitally in a wallet, transferable via the blockchain and transportable without physical risk?
Gold on the blockchain
Enter SwissGold – a Swiss-regulated company based in Zug, Switzerland’s Crypto Valley, that puts gold bars on the blockchain as non-fungible tokens (NFTs).
Each SwissGold NFT is backed by a physical gold bar. The smallest available bar is 1 gram of gold and costs around $60, including the small bar premium. Further bars are available from 10 grams up to 1 kilogram, and for large budgets there is also the 400 ounce bar.
Token holders can keep their gold digitally and without storage fees to build and preserve their wealth, and claim the physical bars against their tokens at any time.
In contrast to the classic gold-backed cryptocurrencies such as PAX Gold or Tether Gold, physical bars are not only delivered in the large 400-ounce standard bars, which corresponds to 12.5 kg of gold. At SwissGold, bars of all sizes can be purchased and held directly.
In addition, the SwissGold NFTs also come with an NFT picture asset and a metaverse-compatible 3D gold bar with the actual gold bar serial number that you can display in your virtual home in your future metaverse habitat.
SwissGold NFTs can be purchased through the swissgold.io website. A range of crypto currencies and fiat currencies is accepted. The gold is stored exclusively in Switzerland in high-security vaults at the renowned precious metals company philoro.
So if you want to preserve your wealth in the turbulent times ahead, you can do so now with gold-backed NFTs from SwissGold and have your gold stored in Switzerland – the safest and most economically stable place in the world.
About Swissgold Crypto AG
SwissGold Crypto AG, based in the Crypto Valley Zug, is a Swiss-regulated financial intermediary and offers easy access to purchase gold in various bar sizes as a non-fungible token (NFT), which is tradable via the blockchain and can be exchanged for the physically backed bar at any time.