Gold has been valued for thousands of years as a store of wealth and a symbol of power and wealth. Today, gold is still widely regarded as a safe haven asset, providing investors with a hedge against economic uncertainty and market volatility. One of the reasons gold can be a useful addition to a diversified investment portfolio is because it is not tied to any single currency or government. This makes it a more stable investment option, as the value of gold tends to hold up even when other investments, such as stocks or bonds, experience downturns.
In addition, gold has been historically seen as a hedge against inflation. When the supply of money in an economy increases, it can lead to a decrease in the purchasing power of that currency. This is known as inflation. By owning gold, an investor has a store of value that is not tied to any particular currency and can potentially hold its value even as the purchasing power of that currency decreases. Gold is also a highly liquid asset, making it easy to buy and sell. This means that it can provide investors with quick access to cash in times of need.
Buying silver can be a good investment for several reasons. First, silver has a wide range of industrial uses, such as in electronics, solar panels, and medical equipment, which makes it a valuable commodity. Additionally, silver is a finite resource and its supply is limited, making it a valuable and rare metal. This, combined with its industrial demand, supports the value of silver over time. Another reason to buy silver is that it is often considered a store of value, similar to gold. Throughout history, silver has been used as a form of currency and as a hedge against inflation.
A gold-backed digital token is a type of cryptocurrency that is backed by a physical asset, in this case, gold. Each token represents one gram of gold stored in a secure and insured vault, and the value of the token is directly linked to the value of the underlying gold. These tokens can be traded on various digital platforms, and they provide a way for investors to invest in gold while taking advantage of the benefits of blockchain technology, such as transparency and immutability.
The gold standard is a monetary system in which the value of a country's currency is directly linked to the amount of gold it holds in reserve. Under the gold standard, countries agreed to convert paper money into a fixed amount of gold on demand. This meant that the value of the currency was directly linked to the amount of gold the country held, and that the country's money supply could not exceed the amount of gold it held in reserve. This system was widely used in the late 19th and early 20th centuries, but it was abandoned by most countries during the Great Depression as governments found it difficult to maintain the link between the money supply and the gold reserves during times of economic stress.
A crypto token is a digital asset that represents ownership or a proof of membership in a specific project, platform or application. It often operates on a blockchain network and has a specific set of rules or functions defined in its underlying smart contract code. A bullion-backed crypto token is a type of crypto token that is backed by physical bullion, such as gold or silver. This means that the value of the token is pegged to the value of the physical bullion it represents, providing a more stable store of value compared to other cryptocurrencies. The physical bullion is typically stored in a secure vault, and the token holders have the right to redeem their tokens for the equivalent value of bullion.
An NFT, or non-fungible token, is a unique digital asset that represents ownership of a specific item, such as a digital artwork, collectible, or even a tweet. Each NFT is unique and cannot be replaced by another, unlike fungible tokens like cryptocurrencies, which are interchangeable. NFTs are typically built on blockchain technology, which allows for the creation of a tamper-proof record of ownership and provenance. This means that when you buy an NFT, you are buying a one-of-a-kind digital asset that is recorded on the blockchain, providing a high level of security and transparency. NFTs are becoming increasingly popular in the art world and among collectors, as they provide a way to prove ownership and authenticity of digital artworks and other unique digital items.
Ainslie Bullion is one of Australia's leading gold & silver bullion dealers and we've been operating since 1974. Buy gold and silver in our Brisbane and Melbourne offices offer over the counter with great customer service, or simply buy online through our website.
Part of what makes us so unique is the ease with which you can redeem your tokens for real gold or silver bullion. Redemptions are managed through Ainslie Crypto in Brisbane and Melbourne, Australia.
Blockchain is a decentralized, digital ledger that records transactions across a network of computers. It is the underlying technology that powers cryptocurrencies such as Bitcoin and Ethereum, but it has potential uses in other industries as well. Each block in a blockchain contains a list of recent transactions and a reference to the previous block, creating a chain of blocks (hence the name blockchain). This chain is stored across the network of computers, making it difficult for any one user to alter the information. This makes it secure, transparent, and resistant to tampering and hacking. The decentralized nature of blockchain technology means that there is no central authority controlling the system, making it more resistant to censorship and fraud.
Yes, AUS (gold) token holders can exchange their tokens for other cryptocurrencies using exchanges that list the AUS token. The exchange process typically involves transferring the AUS tokens to a compatible cryptocurrency exchange and then trading them for the desired cryptocurrency.
The AUS (gold) tokens are built on the Ethereum blockchain and are compliant with the ERC20 token standard. This means that they operate on the Ethereum network and follow a specific set of rules defined by the ERC20 standard, allowing them to be easily traded, stored and managed using Ethereum-compatible wallets and decentralised exchanges.
Each quarter, and all securely within Reserve Vault: The assurance firm downloads the latest database records for each metal. Each bar on the database is checked by the assurance firm to ensure both the weight and serial numbers recorded on the database match what is stored in Reserve Vault. A report of factual findings is produced.
Bars are loaded into tamper-evident storage units sealed with a unique serial number noted by the assurance firm. This serves two purposes. For us, it means we don’t need to re-count tonnes of metal every quarter; only that added or changed during the preceding quarter. For you, it means the metal can’t be ‘used’ between audits. If it is disturbed it will be immediately evident to the assurance firm and noted on the report. Of course, given tokens can be redeemed for metal, there will be times when seals are broken to access metal for redemptions but this will be obvious and noted by the report and the database.
The assurance firm will randomly check 1 in 5 bars for purity and weight. In Australia, precious metals bullion must be at least 99.5% pure for gold (though in practice all gold bullion is 99.99%) and 99.9% pure for silver. These will be the standard for Gold and Silver Standard metal held. Any exceptions to that would be noted in the report. The assurance firm will use a Sigma Metalytics precious metal verifier which tests deeper and does not get fooled by ‘plating’.
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