BTC… Trump… Biden… Covid… 🎢 What about Gold?
For most people during 2020, it was easy to forget about gold… but for those who were paying attention, gold is up +28% vs the US dollar YTD. Those new to precious metals may also be surprised to find out that gold investors from the early 2000s were able to enjoy 632% gains vs the US dollar.
Throughout history, gold has been used as a hedge against rising inflation rates and as a “crisis commodity,” which means the price is expected to rise in times of global instability. Bitcoin supporters often echo the same sentiments about their chosen asset. Even though gold and Bitcoin share similar properties for investors, the majority of the crypto world only feel comfortable using fiat-backed cryptocurrencies as opposed to gold-backed cryptocurrencies.
Despite the fact that over the past 100 years gold has gained an average of 4.2% per year against the US dollar while at the same time the US dollar has lost an average -3.2% in purchasing power per year, the use of Tether ($USDT) by the crypto community has the project standing at close to a $17 billion dollar market cap.
Right now, there is no clear leader in precious metal-backed cryptocurrencies.
Ultimately, we feel this boils down to trust. A US dollar bank account should be far easier to audit than a precious-metals vault but as of today, nobody has been able to successfully audit Tether. In a CoinDesk article from last year, Tether’s own lawyers are only able to claim 74% backing.
Here at CACHE, we have set out to create a best-in-class, gold-backed token called CACHE Gold ($CGT).
While there are other significant projects such as PAX Gold (PAXG) and Tether Gold (XAUT) with similar ambitions, we believe that CACHE Gold is the safest, most transparent, and easiest to redeem among all gold-backed tokens.
3 ways CACHE Gold is designed to lead the digital-gold movement:
1
: Each $CGT token is 100% backed by 1 gram of pure, investment-grade, physical gold (and we can really prove it).
Research by the CACHE Gold team has discovered discrepancies in the transparency data provided by both PAX Gold and Tether Gold.
CACHE Gold tokens avoid transparency issues as the CACHE Explorer is powered by the GramChain asset tracking system, which features notable improvements over existing asset tracking solutions.
Through the CACHE Explorer, anyone can audit the supply of physical gold backing CACHE Gold. The CACHE Explorer provides details on each and every bar, including vault, vault location, refiner, purity, weight, serial number, photograph, and deposit documents.
We believe all gold is not created equal when it comes to liquidity, taxation, and compliance. GramChain strictly enforces that all gold tracked with GramChain meets strict quality and provenance standards.
To ensure $CGT is always 100% backed by real investment-grade gold, tracking data is provided by vault personnel, not the CACHE team. Tamper evident parcels with RFID tags are used and immutable event logs are written to the Ethereum blockchain in real-time that provides anyone the ability to become an auditor and to gain peace of mind knowing their gold is safe. New $CGT tokens cannot be minted until the underlying gold has already been deposited and verified at the vault and scanned-in using GramChain scanners.
2
: CACHE charges a 0.25% storage fee vs 0% for USDT. This is a good thing, let us explain why.
As mentioned earlier, The US dollar is a depreciating asset, losing on average 3.2% of its purchasing power every year. So while many stablecoins do not charge anything, users are left with an average annual loss of 3.2% in purchasing power while gold gains an average of 4.2% (3.95% net of storage fees) against the US dollar every year.
$CGT tokens charge approximately half the fees of a typical gold ETF.
Many gold-backed tokens do not charge storage fees and primarily rely on transaction fees. At CACHE, we believe this to be an unsustainable business model in the long-run due to operating costs and insurance.
CACHE assets are stored exclusively in well-known, reputable, insured vaults. The storage providers CACHE currently partners with are listed below:
- Brink’s (NYSE:BCO) — Global
- Dillon Gage IDS — Texas
- Loomis (OMX:LOOMB:SS)- Global
- The Safe House — Singapore
3
: $CGT provides the best advantages of digital assets and physical gold.
CACHE Gold trades very close to the price of gold, which makes $CGT more competitively priced than virtually all other options for purchasing physical gold. CACHE Gold is also redeemable for USD in over 170 countries.
$CGT is ERC-20 compatible and supported by major hardware and software wallets such as Ledger, Trezor, MetaMask, TrustWallet, Argent, and many others.
Users are able to purchase and trade $CGT at the following centralized and decentralized exchanges.
- Bithumb Global — An international cryptocurrency exchange founded in May 2019. Bithumb Global has grown quickly, with up to $100M in trading activity on a daily basis.
- Bittrex Global — Built on Bittrex’s cutting-edge technology, Bittrex Global provides an institutional grade experience for professional and novice customers alike. The Company is headquartered near the financial center of Zurich, in the Principality of Liechtenstein.
- Uniswap — An extremely liquid, decentralized exchange. $CGT currently boasts more liquidity than any other gold-backed token on Uniswap, and at over $1.3 million USD (at the time of writing) is nearly 3x the next closest gold-token competitor. This places CGT in the top 100 most liquid tokens on Uniswap (#62 at the time of writing).
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