When WHO declared a pandemic situation, the virus resulted in a disastrous economic meltdown that created a considerable profit void in the market. However, there was one commodity that stood almost unaffected, and despite some niggles, recovered with a zap – gold.
Prices of other commodities seem to be on a roller-coaster, and the volatility of shares is ever-increasing amidst the pandemic. Therefore, it doesn’t come as a surprise if you are one of the investors considering investing in gold as the way ahead.
Investing in Gold is a Great Option
The most obvious reason for this is the less volatile nature of gold. Yes, gold has not come out unscathed in this pandemic situation. Every asset has seen a sudden fall, so has gold. However, as a long-term investment, gold is one of the most trust-worthy commodities on the market.
The recovery in gold prices post WHO’s announcements may have been slow, but it has been steady. Also, the fall-rate with gold has been significantly lesser compared to other metals.
How the Markets Fare
Some Asian markets have seen gains since April, owing to the China PMI data, and other Asian countries are slowly recovering as well. Non-Asian countries, especially the United States and Australia, have seen a constant steadiness in the rise of rates. While investing in other commodities and coming out with gains might be tedious, investing in gold can lead to potentially better future yields.
The World Gold Council reports that, “Gold ETFs saw the highest quarterly inflows for four years amid global uncertainty and financial market volatility. Holdings of these products reached a record high of 3,185t by the end of Q1.”
The time, therefore, is now – as markets are slowly recovering but are still hard-hit, gold is at that ideal stage, where the price is just right for buying. You can think of it as a long-term investment option, a safe short-term keep, or a profitable conversion of money.
The conversion can be undertaken through selling other stocks and investing that money in gold, thus ensuring the up-and-down risky market is safer to trade, especially since intra-day trading presents even more risks at this point in time.
The Ideal Mode of Investing In Gold
Due to the global scenario of social distancing, the best way to invest in gold is to invest in digital gold – Bitcoin. Methods of investment and profit-attainment have been revolutionized since the introduction of digital assets.
Since its establishment way back in 2008, Bitcoin prices have soared. The safest bet in these times has been investing in digital assets and gold, and for a few years now, companies have sprung up that let you use either one to buy the other.
The raging debate of “which is better, investing in Gold or Bitcoin?” holds far less significance than it used to around two years ago. The new discussion has now become what digital assets to use, and why?
Some traders do not take into consideration factors such as insurance and liquidity of the currency. Zipmex has very recently partnered with xbullion to provide a platform to deal with and trade in gold tokens.
Why Zipmex xbullion?
xbullion is a global network for the settlement of physical gold, utilising the blockchain to enable users to access the largest physical marketplaces in the world, without charging ongoing custody fees.
xbullion provides best practices around insurance, quality control, storage and auditing, working with world class suppliers to bring you an institutional grade gold storage solution. Zipmex has the credibility base covered, having received the coveted AUSTRAC stamp of approval. xbullion has also partnered with world renowned auditing firm, BDO, to conduct financial, asset and smart contract auditing, which will be made available on their website.
xbullion is applying the benefits of blockchain technology to bring transparency, efficiency and accessibility, to the gold market. Investing in GOLD tokens through xbullion ensures liquidity and peace of mind in the ownership of physical bullion and may be a direct rival to ETFs and fractionalized products and services that offer highly competitive pricing in terms of the spot price.
Another advantage is the fact that with xbullion, the transaction fee is relatively much less at only 19bps. These benefits have already earnt the start-up and Zipmex many pre-registrations of clients considering investing in gold.
Xbullion allows for the peer-to-peer transfer of the full quantity of tokens, thus making trading with xbullion as easy as sending an email.
Given the secure transfer nature of the blockchain technology, the GOLD tokens can be redeemed as per your requirements at any point of time for physical bullion – you will just need to pass xbullion’s whitelisting process to have gold bullion delivered to your registered address.
This makes it an ideal digital blockchain platform for owning gold.
Zipmex actively works with governments wherever it has branches to build and support infrastructure that allows the digital assets market to flourish. One of the co-founders, Akalarp Yimwilai, is a lawyer with ten years of experience in Finance. Thus he makes sure the company always adheres to the rules and laws of the land.
“A global settlement layer for physical gold”, is how the official xbullion website describes their first-of-its-kind gold-backed token, having covered all bases that investors look for in a digital assets that supports gold-toke-trading.
With markets still far from normal and stock prices still rocky and unpredictable, it is clear that gold is the way to go. The recovery rate after the falling prices in the first week of WHO’s announcement is a clear indication that it is as bankable an investment as it can get.
Investing in gold right now will push you well ahead of the race, more so due to the weakness of the dollar. While the US dollar may be the ideal global reserve currency, people tend to move to gold in times of crisis for that cushion of security.
Also, while the prices may move up and down a bit, neither rise nor fall will be meteoric when it comes to gold, as was witnessed in the initial days of the pandemic. The only thing that may be a problem later on is, well, regretting not investing in it.