It is common for financial pundits to categorize gold as just a commodity. It is not. Commodities generally have value only to the extent that they are effectively consumed either directly, or indirectly via various industrial processes. This is largely the case even with gold’s sister silver, which does tarnish and, in modern times, has found numerous major industrial applications that place it beyond practical recycling. Industrial metal stockpiles generally can be expensive to maintain and the costs of recycling metal scrap can be prohibitive. Agricultural and other ‘soft’ commodities are consumed essentially entirely as food.

Gold - One of the rarest commodities on earth

By contrast, gold is gold. It stands alone as the only non-reactive element excepting a few noble gases and poisonous substances. Yes, gold can be fashioned into jewellery, or into myriad other objects of beauty. But the marginal cost of melting it right back into generic bars or coins is small, hence the ubiquitous market for even tiny amounts of scrap jewellery.

Gold production is highly energy-intensive and also requires labor and capital input. But gold, once produced, is eternal. Hence gold is the only substance known to man that functions as stored energy, labor and capital, and hence of stored value. This is the best explanation for why gold has been used as money across all major civilisations over time and is still used as a de facto money in India and much of Asia.

Gold and Copper

That gold does not circulate as a legal-tender currency does not make gold a commodity either. Fiat currencies require third parties to enforce their acceptance and regulate their supply. Here, too, gold is gold. No government is required to enforce its acceptance. Nor is any government able to print it excessively or otherwise devalue it. This is also what makes gold a truly international and multicultural money, unlike fiat currencies with fundamentally political characteristics, their values thus subject to political expedience.

Gold is a truly international and multicultural money

As Lord Acton once observed, power tends to corrupt and absolute power corrupts absolutely. By corollary, monetary power tends to corrupt and absolute monetary power corrupts absolutely. This has become highly evident through the quantitative easing and zero or negative interest rate policies of many central banks since 2008.

Money itself is a technology. As contemporary information theorist George Gilder explains, prices are information and money is the conduit. Economist Ludwig von Mises made the point already in the 1920s that communism would fail because without market-determined price information, economic resources could not be efficiently allocated. Actively managing fiat currencies distorts vital information such as interest rates and risk premia and so undermines economic health. There is also mounting evidence that it exacerbates inequality by elevating the prices of those assets held by the wealthiest households. Gold cannot be manipulated by a single issuer as there is no issuer. It cannot be printed so as to inflate asset prices and exacerbate inequality.

Advocates of bitcoin frequently cite these above points when arguing that it, too, is superior to government-issued fiat currency. However, they also sometimes claim that by contrast to bitcoin, gold is a ‘barbarous relic’ from a time long ago, before computers and the internet ruled global commerce. As with the claim that gold is a commodity, this is also incorrect. There is no practical reason why blockchain technology–the engine behind bitcoin or other competing digital currencies–cannot be applied to gold itself. The only difference is that unlike blockchains, which can be replicated into a potentially infinite number of competing currencies with similar characteristics, there is no replicating gold. Alchemists have tried to be sure but have always failed and the laws of physics and chemistry explain why.

Hence the efficiencies of blockchain can be combined with the unique, eternal store of value benefits of gold, demonstrating that gold is not only not just a commodity but also the ultimate store of value, entirely as suitable for the future as it was for the ancient world and all of those in between. Applying blockchain technology to enable the frictionless exchange of title to gold is thus the single most significant innovation in monetary technology since the advent of standardized coinage in the 1st millennium BC. That is the real scoop here which the mainstream financial media have completely missed so far.

Reintroducing gold as a commodity money using innovation and technology has been my personal mission since 2008. My two primary businesses: Goldmoney and Mene 24K Investment Jewelry illustrate gold’s versatility as both a currency and exemplary natural element.

This article was originally published on Goldmoney.com

Author Credits:

Roy Sebag

Roy Sebag is the Chief Executive Officer of Goldmoney Inc. He has been an active investor and portfolio manager for over a decade specializing in distressed, event-driven, and natural resources investments.

Goldmoney

Goldmoney

Are you a potential investor seeking a reliable investment opportunity? Goldmoney is the perfect, high-yield investment opportunity for you.

Goldmoney has numerous intrinsic qualities that make it a necessity for investors to hold in their portfolios. In this article, we will focus on the benefits of Goldmoney, why it belongs in your portfolio as an investor and the different ways that you can invest in the gold market.

Does It Still Pay To Invest In Gold?

Absolutely Yes!

Gold has always played a vital role in the international monetary system and is still very important in the global economy today. Of all precious metals, gold is the most popular as an investment. Smart investors buy gold as a way to preserve wealth and diversify risk.

To maximize your investment in the gold market, you need a reliable and professional gold-based financial institute such as Goldmoney.

What Is Goldmoney?

Goldmoney is the world’s most trusted name in precious metals. It safeguards close to $2 billion of assets, representing 34.1 tonnes of gold, for clients in 150 countries. This makes it one of the largest privately owned gold reserves in the world.

What Are The Benefits Of Goldmoney?

Gold is wonderful; you can’t own too much gold! So why is Goldmoney so beneficial? Find below, a detailed explanation of the many benefits of Goldmoney:

Simplicity of Ownership and Trading
The concept of gold ownership is quite simple with Goldmoney. As an investor, you can buy gold bullion or coins in a very simplified process. You can monitor prices easily and when it comes to selling, Goldmoney Inc. made it a very straightforward and transparent process.
In summary, Goldmoney is easy to buy and easy to sell. In addition, it has global use and can be traded everywhere worldwide.

Lowest Fees
Goldmoney offers the least expensive way to buy, sell, store, and take delivery of physical precious metals. It is much cheaper than ETFs and coins.

100% Secured
All client assets are segregated, fully-reserved (1:1), and securely stored in insured vaults around the world. This totally eliminates counterparty risk that exists with other forms of investments which all have potential fraud or theft risks.

Dependable and Reliable
You’ll sleep better at night knowing your investment is in safe hands. Investing in Goldmoney offers a calming effect. Goldmoney Inc. is a publicly listed corporation on the TSX (XAU) and regulated by the JFSC. Financial statements are audited by a Big Four accounting firm (KPMG).

Redeemable Bullion
Unlike many other forms of investment, Goldmoney is tactile and tangible. Owners can touch, feel, and hold it. Precious metals are redeemable in bullion bars at vaults and Goldmoney Branches, or in a selection of coins and bars that can be shipped to clients via Schiff Gold.

Low Risk
Goldmoney is a hugely useful asset to have as part of a balanced investment portfolio. It is a must-buy for reasons such as high liquidity, low risk, and other reasons such as:- Higher profits on long term (more profitable than bank’s low interest on investment),
– Safe haven investment,
– Inflation hedge (Gold rises as inflation rises. Cash devalues),
– Currency swing and economic uncertainty hedge.

Tax Advantages
Tax relief of up to 45% is available on gold bars as part of a pension. Goldmoney offers IRA and SIPP accounts for accumulating precious metal savings and deferring tax exposure.

Goldmoney

Banking Services:

Goldmoney offers unique institutionalized banking services such as Prepaid Card available in plastic, 18K gold, and silver. Free gold transfers and business tools for earning in gold. Multi-currency accounts in up to nine currencies and free FX conversions.

They also offer professional institutional services for family offices, corporations, and trusts that provide access to pricing, execution, and custody technology through an API.

Goldmoney is the easiest way to invest in physical gold and silver bullion online whether you’re new to the investment world or you’re a professional. From buying physical gold to cryptocurrencies (Bitcoin), investors have several different options when it comes to investing in Goldmoney.

Not only that, Goldmoney clients have access to the world’s leading precious metals research, done by a team of analysts with over 180 years of combined experience navigating markets. You will receive Market Insights, Updates, Live Prices & Charts.

With such amazing benefits, Goldmoney is literally a gold mine! You will get more returns on your investment using this secured platform. Still contemplating? Opening a Holding with Goldmoney will convince you!

The original article was published on Steve Collie Marketing.