Gold has been the preferred way of accumulating and securing wealth for centuries — and with good reason. Unlike other investment instruments, it is a relatively low-risk option, as it tends to appreciate over time versus fiat currencies like the US dollar, euro or South African rand. Many investors consider gold an effective hedge against currency debasement, poor government actions and inflation - causing investors to flock to the precious metal in times of heightened unpredictability. Gold is scarce due to the effort needed to unearth and its desirability as an investment has proven the test of time.
In times of economic turmoil and uncertainty, gold tends to outperform other asset classes because of its safe-haven nature.
So, has gold held to its word and delivered returns during these times?
The graph above shows gold’s performance relative to US equities over multiple crises and financial uncertainties. What becomes evident is the fact that, despite every uncertainty over the last 22 years, gold has continued to outperform US equities by more than 333%.
Not only has gold outperformed the entire 22-year period, but it has also outperformed each major economic event (shaded areas) displayed above. In times of uncertainty, gold has shown its true power by producing positive returns or holding its value better than US equities. This is why it is still known as the greatest safe-haven asset in history.
Based on the current uncertainties in the world today, many investors are looking to gold as a safe way to protect and grow their wealth.
There are dozens of platforms that offer gold-based investment products, but there is a catch…
Investment products like derivatives, ETFs and futures contracts give investors exposure to the price of gold but not ownership of the underlying asset — however, Revix has done it better through the power of PAX Gold (PAXG).
PAX Gold (PAXG) offers a modern and effortless way to own physical gold. It uses blockchain technology to allow anyone to invest directly in gold without the burden and expense of storage and insurance. One PAX Gold token is backed by one fine troy ounce of the highest quality gold stored in high-security, fully insured vaults. PAX Gold is extremely mobile and divisible while still giving holders ownership of the highest quality Gold in the world. PAX Gold operates within the New York Department of Financial Services jurisdiction.
1 PAX Gold token represents one fine troy ounce of an individual Gold bar. Matching serial numbers found on both the digital token and Gold bar make each token’s asset-backed nature verifiable.
Built as an ERC-20 token on the Ethereum blockchain, PAX Gold can easily be moved or traded anywhere in the world at any time. With low investment minimums, anyone can own a fraction of an LBMA-accredited London Good Delivery gold bar.
The tokenisation of gold makes it possible to allow for fractional ownership of gold. PAX Gold makes it possible to buy smaller amounts of gold (0.01 troy ounce) instead of buying an entire gold bar. This allows individuals to gain exposure to gold who previously couldn’t due to high minimum investment requirements.
Paxos Trust Company issues PAX Gold tokens and is regulated by the New York State Department of Financial Services. PAX Gold is also approved and regulated by the DFS and fully backed by allocated gold held in the world's most secure, leading vaults.
Since a state-chartered trust company issues PAX Gold, customer assets are kept separately from the company’s assets.
Consistent with our dedication to maintaining open and transparent discussions about the evolving situation with Haru Invest ("Haru"), we have prepared a detailed update on the measures we've taken and expect to take in the future.