How FinTech is driving gold into the mainstream
With political and economic tensions steadily intensifying throughout the year, investments in safe haven assets are seeing a significant rise.
By all accounts, gold has had a fantastic 2019 after reaching a six-year high in September, passing the $1,500 per ounce mark to reach its highest price since March 2013.
That’s an increase of roughly 20 per cent this year alone, with growing concerns that the global economy is heading into a recession.
The only way to limit the damage of a stock market crash is to print more money or drop interest rates, both of which are good for gold.
With gold gaining momentum after a five-year consolidation, many analysts are predicting a strong bull market for the precious metal in 2020, driving the price meaningfully higher – forecasts are anywhere from $2,000 and above.
Anyone interested in investing in gold should watch out for further easing from the Federal Reserve, slower economic growth and central banks purchasing – the latter having increased their gold reserves by 530 tonnes in 2018 alone.
The ease of accessibility to the gold market via technology – from both mobile and web – has helped drive the demand for gold, which has grown 15 per cent per year since 2001.
FinTech companies allow retail investors to invest in physical gold quickly, easily and securely from their smartphones.
These tech companies may not own gold inventory – or profit from spreads – but simply connect users to a global marketplace and use smart trading technology to find the best gold prices.
Users may even be able to spend the value of their gold in the shops or online using cards which convert it into cash in real-time and to the penny.
So whether you’d like to buy gold as a long-term investment or purchase your morning coffee using a proportion of your holdings, the choice is yours and the transaction will be seamless.
With developments in the FinTech and banking space in a constant state of advancement, the next year will see continuing development in gold-backed monetary systems, be they tokens or cryptocurrencies, the release of gold debit cards or greater access to the global gold market than ever before.
One thing is certain: gold is back in the mainstream, and it’s here to stay. The only question is how high it will go.