Gold — the Eternal Value.
How modern technologies change the classic industry
In the modern world, the right investment may be key to your future wealth. But how should one choose a subject to invest in? Is it better to put your hard-earned money into new risky ventures and explore new opportunities or remained tied to the classics? Check our latest article to make your choice.
World changes. Gold stays the same.
From the times immemorial and very beginning of our known history, humanity had been greatly attracted to precious metals of all sorts. Gold has the richest history among all the assets though. Looking into the past through archaeology and historical books, we have constantly convinced of this finding evidences here and there that unity of all the races and nations with such thing as a passion for gold.
The economy proves that use of gold is more than the just desire for shiny metal — the money must be real, otherwise, it loses its cost over time, as the value of a currency backed only by forecasts and promises is reduced to zero.
Fact is, gold has numerous advantages as it is the of the most permanent and long-lived real goods. Moreover, it’s the only thermodynamically stable element of all known universe so far. That means, being in its natural state, gold does not react with other elements, does not oxidize, does not decompose and does not rust. Besides, it is the only biologically compatible element, completely non-toxic when swallowed. So, gold is used in food, beauty industry, and many others.
Gold is the backbone of the entire financial system. According to the world gold Council (WGC), gold mining in the world at the end of 2018 set a new record for all-time observations. Although, China saw a decrease.
According to the latest data, during the past 2018, gold production in the world amounted to 3346,9T. WGC states that this is the most significant annual production for all the time of observations and the tenth year in a row when the production of precious metals continues to grow.
The vast industry of gold mining production has some ongoing issues, which only can be dealt with the new technologies: difficulty and high cost of transportation, storing and tracking. And here the blockchain steps in.
Gold digitally divided
We live in the age of advancing technology. In digital assets industry, the blockchain or DLT is increasingly used every day. Food, oil, or even gold and diamonds area have long undoubtedly been able to use it as a reliable tool for information storage/tracking throughout the production, logistics, and supply chain.
Fact is, gold is not just a shiny and valuable metal. Tracking the gold supply can be vital to preventing the illicit financing of armed conflicts and terrorist groups through it.
Tokenization is undoubtedly an emerging trend in the last years. In such circumstances, new opportunities arise for the thousand-old market, that was physically challenging before: separation of gold bullion into smaller denominations, simplified transportation or increasingly efficient asset landing.
However, having reached nominal record values, gold has been out of sight of investors for seven years due to cryptocurrencies market rise, but the gold reserves are almost unchanged. Gold and gold miners market simply tend to lose speculators and traders because they are engaged in speculation with digital assets nowadays. However, gold-stock market indicators are growing every day, and people do not see the need for a variety of assets, which historically does not fit with traditional stocks. Fact is, gold and gold mining companies are ideal for investors operating contrary to market trends — the most profitable investments are usually the ones no one talks about.
Infinite value
No hot headlines, no overhype, and no disappointment as a result. Gold is growing slowly but steadily: week after week, month after month, and year after year. Gold does not change, and it remains a measure of values. But our world is changing a faster pace, and it is time to pay attention to how to make the most of existing technologies and improve them, and not to chase senselessly forward.