For decades, gold has been considered a safe haven when it comes to inflationary periods and protecting your savings at a fairly low risk. The price of the precious metal has increased by about 600% over the course of the last ~20 years, surpassing the returns of indexes such as the S&P 500, Dow Jones Industrial and many others.
In times of skyrocketing inflation, rising interest rates, inverted yield curves and a possible recession coming through in the next several months, gold is outperforming the majority of other investment options on the market.
The price of gold over the last month has increased by a considerable amount - from 1724$ per ounce (December 15, 2022) to $1914 per ounce (January 16, 2023). The purple line is the 200 day moving average - the current price is much higher than that, which is a rarity in the current bear market for all stocks, commodities and cryptocurrencies, most of which are trading below it.
Furthermore, it is expected that over the course of 2023, gold could yield some substantial returns from 20% to 30%. Some analysts predict there will be a certain time frame of stagflation for the foreseeable future, which is one of the periods where gold, precious metals and real estate have historically been the best investment options, sometimes bringing investors a return of investment of more than 30% ( The great stagflation 2.0 and gold | Kitco News).
It is evident that gold is already becoming one of the most sought after investments in 2023. However, the options that are currently available to smaller investors to participate in the gold investment markets are not only limited, but are also connected with multiple shortcomings that reduce the overall attractiveness of the precious metal.
Some of the most prominent options available today are buying gold in the form of stocks or CFDs or acquiring the physical asset and storing it. This, however, presents investors with a dilemma - while the former is usually related to various fees on trading platforms, the latter also incurs regular costs for vaults and other types of storage. Both of these options reduce the overall incentive to invest by making the break-even point harder to achieve.
Another option for smaller investors are private gold investment products like gold coins or gold bars. However, many of these have some sort of minimum requirements, which retail investors have to meet. Other products that have much lower capital requirements are also an option, but there are very few trustworthy players in this area that can guarantee a high security of investments due to the low degree of transparency in how these companies operate.
Another traditional way to invest in gold is to trade futures and options on the commodities market. This option is very advanced and requires a considerable amount of experience and knowledge, making it basically inaccessible to retail investors.
Lastly, there have been multiple cryptocurrency projects focused on providing solutions related to gold, with the hopes of presenting gold investors with a sound alternative to traditional options. The most notable of these were gold-backed cryptocurrencies, which failed to capture a considerable market share. What is more, many of these projects are not publicly disclosing the reserves they are supposed to maintain, which creates uncertainties when it comes to the question whether the cryptocurrency is actually backed and if it would survive turbulent market situations.
An existing company with considerable experience on the precious metals markets recently came up with a disruptive model that possesses the potential of revolutionizing the way retail traders invest in gold.
The Easygold Token project was initiated by the Hartmann & Benz company, a German enterprise focused on providing gold investment products for investors with a starting capital of just 10 EUR. The company has been active for 3 years now and has managed to grow its customer base to thousands of gold investors, leading to a positive financial return just a few months after its incorporation. Multiple German and international financial media have featured the company, including Bloomberg, Wallstreet Online and Market Watch.
Easygold Token leverages the advantages of cryptocurrencies and Security tokens such as the high degree of transparency and ease of transfer to introduce a disruptive model that offers gold investors a security token representing real gold that simultaneously gives its holders profit sharing rights of up to 50%. The project is a natural extension of the company’s forward thinking approach when it comes to gold investing and the pursuit of their main goal - to democratize the access to gold by making the process seamless, accessible, secure and profitable to every investor.
The project is raising funds through a Security Token offering that are fully invested in the acquisition of raw gold from one of the trusted suppliers of the Heartmann & Benz company. The raw gold is then processed in one of the company’s refineries in Turkey and Switzerland into LBMA certified 999,9 high quality gold bars and sold on the precious metals markets with a profit of 20% to 30%. The revenues made through this process are then reinvested into the same cycle, resulting a business model that can be scaled over time, potentially leading to increasing returns for investors in the long-term.
The Easygold Token offers special bonuses and discounts for early investors. If you are interested in learning more about the project, how their operational chain works, who the people behind the project are and what has been achieved so far, visit www.easygold.io.
Disclaimer. This article is paid and provided by a third-party source and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds in any company. CoinIdol shall not be responsible or liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any such content, goods or services mentioned in this article.