Due to the rise of global banking institutions and central banks, fiat currency has taken over the entire world as the primary form of currency. Unfortunately, fiat currencies don’t have any assets backing up their value, they are only backed by centralized authorities. Additionally, there is no limit to the number of notes a central bank can print, which has led to constant inflation of all global currencies.
To solve all these issues, some entrepreneurs have formed companies with an actual commodity (such as precious metals) backing up its value, Goldmoney is one such company. Services like this are free from the looming threat of inflation, and they offer us users a more superior alternative to the existing Fiat currency institutions.
The Fiat Problem of Financial instability
Ever since we have been on a fiat standard in the west, the financial market has constantly been fluctuating, with very little to prove its stability. There are so many times that we are unsure of when or how our hard-earned savings would be affected by the slightest change in the market. Moreover, there is not much consensus on why one currency has a different value from the other. This disparity in the value of the currency is a startling reminder as to how fragile the market truly is.
Additionally, there is no limit to the amount of fiat money the centralized authorities can print. With no physical asset to back the value of fiat currency, centralized authorities print these as and when they wish. Thus, exposing a major flaw in the current global financial system.
For the United States, what props up our dollar? The fact that it is the world reserve currency, that’s it! So, what happens where the national debt grows too high to sustain and the rest of the world drops it? We enter into a deep recession and depression, where many people will suffer greatly.
The Need for a Universal Standard of Value
Ever since the beginning of trade, there was always a notion of bartering a particular quantity of goods for an “equivalent” quantity of other goods. Since the value of most products are relative, there have always been some insecurities behind the value that was handled for a number of commodities.
The value for the various commodities was set based on its rarity and demand. Take gold, for example. This precious metal has stood throughout the ages as a universal symbol of wealth and prosperity. Being recognized as a prized possession with a high purchasing power, many sought to use this commodity as a standard of currency across the globe. The value of fiat currencies, on the other hand, is not backed by any commodity. Instead, their value is set by centralized authorities.
Although the early days of modern currency used gold as a means to back their purchasing power, at different points most countries went off of this “gold standard”, usually because of war. In the modern market it is becoming more of a problem than ever before, because of high government spending in nearly every nation.
With examples such as the Weimar Republic, and Zimbabwe being catastrophic failures due to fiat inflation, most people who understand basic economics are wary. In the west today, more people are worrying how the currency itself would be stable. Especially in the USA where unchecked government spending and the astronomical national debt would cause the dollar to inflate to unprecedented lengths.
The Answer is Gold
People who fear inflation should invest their fiat currency in tangible assets, ones that will only appreciate as the different fiat currencies depreciate. Gold, silver, platinum, and even copper are all metals that are used in many different industries and are financially stable in any market. With gold being the most popular and safest asset to own, it is the perfect hedge against inflation.
Gold has always been lauded for its unique properties, and most importantly its market stability. This high stability of gold is due, in part, to the fact that there is a finite amount of gold in existence. That rarity, combined with its crucial application in many important technologies, and it being the most non-reactive metal known to man, is what makes it so unique and sought after.
Not to mention, gold is one of the most beautiful metals, causing it to be represented as the universal symbol of value. These factors have kept gold as the most important and stable investment medium, and store of value in history. So, while highly volatile fiat prices can make or break a savings, the far less volatile and more stable precious metals can immunize a savings against out of control inflation.
The Goldmoney Solution
Traditionally, using gold as a currency has always been more difficult than fiat currency, because of its weight and mass, the trouble with securing large amounts of it, and the impractical nature of spending small amounts of it. However, with the technology of the modern era, we can utilize companies like Goldmoney INC, to store our gold and allow us to spend it with debit cards.
Utilizing the technology of online banking and ledger databases, transactions in gold can be handled easily and calculated against the current price at the time of spending. This technological solution is what gives Goldmoney the perfect platform to use gold as a unit of trade. Goldmoney provides the best response to the fluctuating fiat prices by allowing its customers to buy, sell and trade in gold directly.
The main aim of Goldmoney is to provide access to gold and other precious metals to everyone without compromising on security. It does so by holding on to a physical unit of gold which has been bought by the owner and stored remotely in vaults across five countries. The owner can then use this gold to trade or as a security investment.
Many people have already seen the benefits of using gold as a store of value. The banks offer a minuscule interest rate to the money that people store as savings. However, this interest rate of typically 1% and below, does not combat the average inflation rate of 3%. Gold, on the other hand, has increased its value every year due to the high demand and limited supply. Thus, it acts as the right alternative to combat inflation.
Using gold and other precious metals to store value as a hedge against fiat inflation is just good practice in general. The ability to spend such savings as easily as any other banking option, through the use of a debit card, makes Goldmoney a unique and convenient service that nobody should live without. You create financial stability and freedom by keeping your money in a less volatile and inflation resistant asset, while using it as a currency if need be.
Goldmoney has achieved a balance between traditional banking, savings, and investing. By reducing market volatility and at the same time, protecting against inflation, they have won the trust of savvy savers. Giving people direct access to easily spend their money also raises confidence in the owners that their money is in the right hands.
Goldmoney has the ability to trade not just in gold but also in silver, platinum, and palladium. Owners can then reserve or exchange their precious metal in up to nine currencies (USD, EUR, CAD, CHF, JPY, NZD, HKD and GBP). This gives you a variety of stable commodities to properly invest in.
Security is the top priority for Goldmoney, because it is the major part of their business model. They have insured custody and storing of the metals in vaults around the world. The gold bought can be either stored remotely or shipped for personal storage. They make it a point to emphasize on fully reserved accounts with an audited metal ownership.
Spending your stored metals as currency is the main draw of the business, allowing convenient and easy access to your stored value. As a merchant, you can even be paid in gold, if you so choose. You can also use Goldmoney to buy things from a merchant who has partnered with Goldmoney. In this case, you transfer the Gold from your vault to the merchant’s vault and buy the product. This is more convenient than buying using physical fiat money.
All these services are provided at a very convenient price. For example, buying and selling gold, silver, platinum or palladium has a fee of only 0.5% of the quoted price. Likewise, converting from one metal to another is a lot smoother with Goldmoney offering a 0.75% fee while avoiding the need to make two transactions and paying double the fees.
These fees are a lot lower than what the general market quotes and at the same time, gives you the highest priority to what you want to do with your metal.
Although it has a highly sophisticated storage, Goldmoney allows you to redeem your coins or bars with the help of Schiff Gold, a subsidiary of Goldmoney. This provides a means to physically deliver your coins or bars with no fee involved. This is a perfect method of personally securing your precious metals.
What are the possibilities with Goldmoney?
- Users: Goldmoney gives the users a sense of security for their gold. The gold is stored in highly secure vaults across five different countries. Alternatively, users can also request for the delivery of gold and store it in their own safes. Goldmoney also allows users to buy products from merchants who accept Goldmoney as a mode of payment. Thus, eliminating the need for fiat currency as a whole.
- Merchants: For the merchants, it is extremely easy for them to hop onto the platform and start accepting Goldmoney. The price stability offered by gold also ensures that the amount they get paid does not change. Thus, overcoming the problems of fiat currency.
- Cryptocurrency: Users can also buy cryptocurrency on the Goldmoney platform. With the interest in cryptocurrencies on the rise and at the same time, many countries stopping the support of banks to buy cryptocurrency on exchanges, being able to buy on Goldmoney platform is a great perk to have.
- Dedicated relationship manager: The platform also has a dedicated relationship manager who helps everyone who needs a walkthrough of the entire platform.
Goldmoney is not a new organization trying to solve the financial crisis. It is an institute with over a decade of `experience in the field of financial security. We have all had to go through a large number of financial problems due to the flaws in the existing financial system. However, Goldmoney aims at breaking the shackles that are holding us back from complete financial freedom. Thus, providing an amazing service for a better and more sustainable financial future.