The last few months have increased the price of precious metal gold as governments have generated massive amounts of debt and inflation around the world. In the first week of August, for example, the value of gold per ounce soared over $2k. In the meantime, two blockchain tokens, identical to the physical equivalents, claiming to be backed by gold, have seen strong demand and low premiums. Though this year a handful of other ‘digital gold’ crypto coins saw market valuations shake.
Meanwhile, there have been high demand and low prices for two blockchain tokens, similar to the physical counterparts, claiming to be backed by gold. Although a handful of other ‘digital gold‘ crypto coins have seen market valuations shake this year.
Experts say the value of gold could rise to $3k an ounce by the end of the year if governments and central banks continue to cause economic catastrophes. Though gold has risen considerably this year, actual bullion, gold coins, and bars have become much harder to acquire unless you buy in bulk.
The notorious gold bug and analyst Egon von Greyerz has cautioned investors on several occasions that there’s a “huge physical gold shortage” in recent months, particularly when it comes to conventional gold futures markets and the London bullion market (LBMA).
The LBMA is among the world’s largest over-the-counter wholesale markets for gold and silver.
“There is a major physical gold shortage in the futures markets and the LBMA scheme. As gold goes up and the gold holders ask for physical delivery, there will be no gold left to resolve the paper claims, “stressed the analyst.
Another field that has been increasing steadily is the market for gold-backed cryptocurrencies, and two of these tokens get a premium. The gold-backed tokens PAXG and XAUT have seen strong premiums over the spot price of gold ranging from 0.5 to 3 percent over the last two weeks.
There are more than 77 crypto ventures this year, for example, which exploit the shiny yellow precious metal. Tether Limited has issued a coin called XAUT that sells for $1,938 per ounce, as opposed to the spot price of $1,926 for gold.
A single XAUT is measured on a London Good Delivery gold bar by “one troy fine ounce of gold.” XAUT carries a premium of 0.62 percent at the time of printing.
Pax Global’s pax gold (PAXG) token still bears a small premium right now at $1,934 per PAXG over the spot price of gold today. One fine troy ounce London Safe Delivery gold bar also supports the PAXG token.
A number of smaller gold-backed tokens pale in comparison to PAXG and XAUT tokens as far as market value and trade volumes are concerned. In 2020 the gold crypto products of Tether Limited and Pax Global stand out above the competition.
For example, Karatgold coin (KBC) has a market capitalization of roughly $65 million during the first month of 2020. KBC’s market cap today is down to $16 million, and the token has shed -26.38 percent in the last 24 hours. KBC’s founders have participated in numerous inquiries involving financial regulators from a range of countries.
Digixglobal’s digix gold token (DGX) has seen a small market cap boost since the start of the year, as it has raised $968,892 so far. DGX only has about $200,000 a day worth of global trade value. A single DGX ‘s token price has lost -6.54 percent in value over the past 24 hours.
The Coinshares Digital Gold (DGLD) launched project is listed on Coinmarketcap.com as an “Untracked Listing,” but the website does not show market details. DGLD trades on the Blockchain.com exchange, and the token is combined with bitcoin ( BTC). At the time of printing, one single DGLD is swapping for 0.016882 BTC ($190).
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