What is gold?
Gold has cultural, industrial and financial value and has been the most highly desired of the world’s precious metals since ancient times. It was integral to the valuation of the world’s currencies well into the 20th century, linked to the price of the US dollar until the early 1970s.
It’s time to invest in gold
We live in unprecedented times. With trillions of dollars printed annually there is only one inevitable result. High inflation or hyperinflation.
Gold is an asset that benefits from inflation. It’s the best protection against currency devaluation.
Also, it is viewed as a safe-haven that’s widely recommended as part of a diversified portfolio, particularly in times of crisis and uncertainty.
How to invest in tokenized crypto gold?
You can buy gold represented as an Ethereum token rather than buying a gold ETF from your brokerage.
For example, PAX Gold (PAXG) is an asset-backed token and a fast, effortless way to invest in physical gold.
- compatibility with crypto finance
- storage in crypto wallets
- lower annual fees
- access to gold products that have traditionally been reserved only for large purchasers
For more click here.
5 reasons for buying gold now
- Hedge against event risk
There is barely any lack of turmoil in global affairs, and it’s almost certain that geopolitical events are going to dominate the markets in the near future as well. If we add natural disasters, economic crises, trade wars, market glitches, and black swans, we can safely declare that the only certainty in the markets is uncertainty. It all boils down to this, the event risk affects equities and bonds negatively, but gold thrives in such an environment and may act as a potential hedge.
- Diversification — zig when stocks zag
Gold returns are usually inversely proportional to the returns of both stocks and bonds. So often, when other major asset classes fall, gold rises.
Compared to other asset classes like real estate, gold trading is highly liquid. You can trade it in physical form, in the paper as futures or CFDs, and in crypto form as DACCs. The result? It is easy to buy and sell gold and you can liquidate your position whenever required.
- Protection against Inflation
Gold is directly proportional to the government debt which means that it will move with debt. The US government’s debt has reached 108% of GDP and other developed countries are no better. Here is what we mean. Money-printing usually results in inflation and commodities are one of the few asset classes that benefit from inflation.
Adding gold in your portfolio will definitely help you to beat the market.
- Potential for more returns
And on top of all that, there is the “trend-following” argument. How does this work? You can take advantage of the volatility to earn huge profits. Just look at the chart of gold and you realize that this might be the best timing for buying gold.
Top four tips for the swing trading on gold
1. Make a plan
Gold tends to evoke a powerful emotional reaction in traders, leading them to large trades or add to a losing position. Remove this from the equation and try to think of the commodity only in terms of price movements. Here is how you do it. A goal without a plan is just a wish. Develop a trading strategy with a set risk-reward ratio, and stick to it.
2. Do your homework
Use charts to get an idea of how gold behaves over different time periods. Backtest, look for patterns, wait for breakouts and trade with the trend. Trend is your friend.
3. Learn what rocks the boat
Gold has its own price drivers that you’ll need to watch when trading. Dollar, inflation and the anticipation of financial or political crises are among the major ones to follow.
Open an account
To trade on oil prices with Virtuse Exchange, you’ll need to open an account. It takes a matter of minutes, can be done entirely online, and there’s no obligation to fund once you’ve finished your application.
However, you will need to fund before you place your first trade. Funding a wallet account is simple – you can send US dollars, stablecoins (PAX, BUSD, GUSD, USDT) or Bitcoin and ETH.