Gold is turning into one of the hottest investments of 2020, but it is also probably going to be a great place to be over the coming decades. CACHE Gold is an innovative securitization company that offers investors and traders a solid way to own securitized gold tokens.
CACHE Gold doesn’t sell gold-backed tokens – it is a Singapore based metals dealer that specializes in creating the CGT, which is backed by one gram of pure gold. As global governments and central banks look for ways to keep their systems afloat, gold prices are likely to rise sharply.
The company is fully regulated in Singapore, and CACHE holds license number PS20190001508 under the Precious Stones and Precious Metals Dealers (Prevention of Money Laundering and Terrorism Financing) Act (PSPM Act).
There are many good reasons why gold makes sense as an investment right now, and also why the CGT token offers investors a good way to hold securitized gold, without any of the hassles of physical gold bullion.
CACHE Gold is Built for Investors
CACHE Gold CGT tokens are as close to gold as a digital investor can get without actually buying bullion. If you want to redeem your CGT – no problem. As long as you have 100 CGT tokens, you can pick up your gold at registered exchanges, or opt to have the metal shipped to addresses in the USA and Singapore.
Of course, the real advantages of digital gold are the ease of storage, as well as transferring the tokens without barriers. CACHE charges 0.25% per year in administrative fees, and a 0.1% charge when tokens are transferred, when compared to physical gold these fees are extremely reasonable.
CGT tokens are built on ERC-20 architecture, which means that most wallets will be able to store the token. If you want to put some gold away that isn’t going to need any additional custodial attention the CGT token could be a good way to go.
Aside from the 0.1% fee that is charged by CACHE, moving gold from one party to another is extremely simple with the CGT token. Keeping liquid gold on your person isn’t especially easy unless you only need to carry a small amount.
The CGT token is also built to be used within the cryptocurrency ecosystem. Many people don’t want to use stablecoins because they don’t trust the value of fiat currencies, and a metal-backed token like CGT would be a good way for investors to trade between cryptos and gold.
The Stability of Gold
While it is true that the value of gold varies more than the value of one major currency against another (EURUSD, for example), over the long-term, the price of gold just keeps going up. A big reason why gold seems to have a long-term uptrend is that fiat currency is created as a matter of convenience, and it isn’t tied to anything that has tangible value.
Global central banks and major governments recently started created immense amounts of fiat currency, which means that gold prices are likely to rise more from here. Many people in the established financial community point to Central Bank Digital Currencies (CBDCs) as the future, but there is a major flaw in this thinking.
If there is a crisis of confidence in fiat currencies – why would people accept another fiat currency that would be even easier to create from thin air?
Instead, people will want to trade with currencies that are fixed in supply.
Gold is a perfect example of the kind of asset that would offer stability, as it can’t be created on-demand. The CGT token represents one gram of gold, which is a good amount for making small and medium-sized purchases, at least at current price levels!
A Great Way to Hold and Use Gold
A century ago it was normal to use precious metals as money. In fact, the word ‘dollar’ was a legally enforced amount of gold or silver bullion. Now all of that is in the past, but there are still very good reasons to have gold that can be used as currency.
If you want to turn your physical gold into something you can spend with a debit card, there are a lot of intermediaries between the metal, and the banking system.
The CGT token breaks down most of these barriers, as there is a well-developed crypto ecosystem that allows token holders to spend most major cryptos as cash with a debit card. Once people learn how easy it is to escape the fiat financial system, alternative assets like gold are likely to gain even wider popularity.
As the CGT token can be traded for most major cryptos on exchanges, it is very simple to swap CGT tokens for BTC or ETH, then use them like cash via a crypto debit card of your choice. Additionally, there are intermediaries between the securitized gold and debit card, which adds an extra level of safety.
CACHE created GramChain to ensure that anyone who wants to audit the location of securitized gold can do so without any hassles. The gold that backs the CGT tokens is held by CACHE at top-tier vaults, where it has been timestamped, photographed, and its current market value can be confirmed via CACHE explorer.
Transparency is everything when it comes to securitized assets, and CACHE has done what is needed to ensure that anyone who is holding CGT tokens has the ability to check on the gold that backs the tokens.
If you are interested in holding gold that has been securitized and is represented by a token, be sure that the platform you choose has similar transparency in place. It is vital to know what is backing up the gold tokens you hold, as the wrong system could leave you with worthless digital assets.
Gold is Primed to Rock the Markets
Over the past few years, central banks and large investors have been adding to their gold positions. With gold blasting past the $2,000 mark in recent days, it isn’t difficult to see why smart money has been buying exposure to the yellow metal.
There is no replacement for holding physical gold, but with the slowdown in metal refining, and mad rush by US traders to secure tons of gold, metal-backed tokens like CGT make a lot of sense for investors that are comfortable with digital assets.
Instead of having to compete for small amounts of gold in coin or bar form, the CGT token makes it easy to buy and sell gold, and also keep your transactions out of the established banking system.
CACHE gold has worked hard to create a great digital gold token that is fully securitized with gold bullion, and freely transferable within the Ethereum ecosystem.
If you would like to learn more about how the project is structured, or how to buy the CGT token, there is loads of information on the company’s GitHub and Medium account.
With gold standing out as one of the premier alternative assets in the world, it is easy to see how CGT tokens will be popular. It is one of the only gold-backed tokens that offers full transparency, and ease of use!
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Source: CACHE Gold: Regulated ERC20 Tokens Fully Backed by Gold