History
People invest in gold bullion for many reasons, but the primary reason people invest in gold bullion is due to its socially accepted value as a safe haven asset and its history as a store of wealth. Gold bullion is often a hedge against inflation, currency fluctuations, and economic and political uncertainty. Gold has been used as a store of value for thousands of years, and it is widely recognised and accepted worldwide. The use of gold as a form of currency dates back to ancient civilizations such as the Egyptians and the Romans. In ancient times, gold and silver were used as a medium of exchange and a store of wealth. As trade and commerce evolved, the value of bullion increased, and it became a widely recognized form of currency. In the Middle Ages, gold coins were widely used for trade and as a store of wealth, and the concept of a standard weight and purity for gold coins was established.
The modern bullion market has its roots in the gold standard, which was widely adopted by countries in the 19th and early 20th centuries. Under the gold standard, a country's currency was pegged to the value of gold, and gold coins were widely used as a medium of exchange. Bullion is widely traded as a store of value and as an investment, and it continues to be a popular choice for investors seeking to protect their wealth from economic uncertainty and inflation.
The Global Digital Gold Market, turns back time, with the introduction of the worlds first-ever Digital Gold with full provence, via an independently audited (2012) 400 oz central bank, four nines bullion bars.
We’ve traded gold for 1,100 years. Now with Digital Gold, you can do it in seconds, anywhere anytime.
Store-of-value
Gold’s value doesn’t depend on any government or any counterparty. Gold has always been an inherently international and politically neutral asset. Nobody can arbitrarily inflate the supply, thus different civilizations worldwide have used gold to store value for millennia. The lesson is that, although the gold price may fluctuate...gold has consistently reverted to its historic purchasing power parity against other commodities and intermediate products. Over time, gold has proved to the accepted means to price all other commodities, and hence gold exists as an effective preserver of wealth.
Gold is the staple status commodity of most nations, the problem is the majority of this gold is stored in the bank vaults with a return value only upon sale. The demand for gold has risen steadily over the past few decades but the prices for gold have increased multiple times over the years, especially during the recent pandemic when the gold prices reached unprecedented heights in the wake of market uncertainty.
In order to make optimum utilization of this invaluable asset, the gold market has moved into the digital world, where physical gold bullion is legally dematerialised and bound to the laws of a digital world. Once gold bullion is legally dematerialised it can never return to its original physical form it can only exist inside a digital world. The XAU gold market turns horded physical gold with negative yield into a guaranteed yield, of 4%. XAU gold can be redeemed upon demand into 139 fiat-currencies via the law of one price. The XAU marketplace seeks to mobilise physical gold held by instruction's such as banks, households and temples, which can then circulate to underpin economic growth, and financial stability.
Details
The traditional method of owning gold has always been expensive, cumbersome, and risky. Digital gold, on the other hand, solves these problems efficiently. It enables investors to own tangible gold without the need for storage, insurance, or transportation costs. Digital gold ownership is transparent and secure against all bad actors, including nation states. Digital gold is a game-changer within the investment landscape. It offers investors, who understand the historical importance of Gold to humanity, the opportunity to diversify their portfolios and hedge against central bank induced inflation, currency devaluation, and geopolitical risks. Moreover, digital gold ownership is accessible to anyone worldwide, regardless of their location or financial status. Investors who gain access to the limited supply of digital gold as an investment opportunity, enjoy both the benefits of gold ownership and digital innovation while avoiding the traditional bullion’s drawbacks.
Physical vs Digital
Both represent tangible bearer objects, which can be individually possessed as property, one exists in the physical world and the other within a digital world.
Both require securing in order to enforce ownership and other tangible property rights.
Both provide exposure to the upside of historical gold prices, but distinctively different.
Both trade on a secondary bullion market.
Both require individual possession without any custodians, to fully enforce property rights, including ownership, to the exclusion of all others, over both forms of tangible Gold.
Digital bullion as XAU represents dematerialised physical gold, it exists as tangible bullion within a digital world. It's tangible existence allows it to be physically possessed as dematerialised gold bullion or private property. Each individual can hold tangible gold bullion designated by the asset ID equivalent of ISO code XAU.
The XAU marketplace allows anyone, anywhere, anytime to trade XAU bullion within a sub-second exchange with ~ 139 Local Currency Units as a daily spot price.
There are several advantages of dematerialised gold over physical gold:
XAU is fungible and infinitely divisible.
XAU supports fractional ownership
XAU is individual held without any storage or insurance fees
XAU marketplace is continuous and instant with universal legal finality of all trades
XAU self custody is secure against all known attack vectors including nation state bad actors
XAU trades are guaranteed private and not subject to any coercion or censorship
XAU represents a store of value via Law of One Price
XAU provides a guaranteed minimum yield of 4%, to its exchange currencies.
XAU supply is limited to the 400 ounce gold bullion supply, as existed within the world central banks @ 1971.
XAU holdings are in Deci-ounces fine.
XAU as digital bearer gold are held outside of the worlds financial or monetary systems.
XAU is no one's liability, its value is not dependent upon any creditworthiness or an issuer guarantee.
XAU ownership is not subject to registration or censorship by any third party.
Market Standards
Refiners and suppliers to the market must adhere to the good delivery standards for bullion:
Purity: The minimum purity requirement is set, with gold bullion being at least .999 fine (99.9% pure).
Weight: A minimum weight requirement is established, with all serialised, central bank gold bars having a minimum weight of 400 ounces.
Documentation: Accompanying documentation, including a certificate of authenticity and an assay certificate, must be provided.
Holding Level: 0.01 ounces.
Private Bullion Brands
The growth of bullion dealers and private businesses refining their own bullion has increased in recent times. These companies maintain high standards of production and offer bullion products that are of high quality and purity. This gives investors the opportunity to purchase gold bullion bars which did not originate from 400 ounce serialised and audited bars. The minimum weight requirement above is adjusted to 1 kg fine. However, it's important to be aware that these bars may not be as widely recognized or accepted without the prior approval of the market operator.
All supplied bullion will be legally dematerialised which involves legal immobilisation and physical destruction of each bullion bar.