Mark Pey

January 15, 2019

Why Gold in 2019 according to The World Gold Council

"As we look ahead, we expect that the interplay between market risk and economic growth in 2019 will drive gold demand. And we explore three key trends that we expect will influence its price performance: financial market instability, monetary policy and the US dollar, and structural economic reforms. Against this backdrop, we believe that gold has an increasingly relevant role to play in investors' portfolios."

Why Gold is Valuable

According to The World Gold Council there are four attributes that make gold a valuable strategic asset:

  • it provides a source of return
  • it has a low correlation to major asset classes in both expansionary and recessionary periods
  • it is a mainstream asset that is as liquid as other financial securities
  • it has a history of improved portfolio risk-adjusted returns.

In 2018 these factors all came into play in gold’s price performance relative to other assets. As the chart below shows, gold outperformed shares, commodities, and balanced funds for the year:

 

world-gold-council-why-gold-2019

 

(Note: the "Long USD Gold" line on the chart is an index of gold performance in currencies other than the U. S. Dollar, including the Euro, the Japanese Yen, and the British Pound).

Why Gold now in 2019

In 2019 the Council expects a carry-over of the three main factors that drove gold performance in 2018:

  • financial market instability
  • monetary policy and the U.S. Dollar
  • structural economic reforms

The first factor drives gold performance as investors seek safe havens from market volatility, which has continued so far this year.

The second factor affects gold’s headline USD price, but the U.S. Federal Reserve is expressing a more neutral stance from the policies that drove relative dollar strength last year.

And the third factor, economic reform that will continue to support demand for gold in jewellery, technology and as means of savings, looks to continue especially in the countries across Asia that are responsible for 70% of global gold demand.

So Happy New Year to all our customers, and we hope you will make it a golden one!

Read full report from the World Gold Council.

Read more about gold liquidity

Follow SendGold on Facebook

 


Mark Pey

January 15, 2019

Why Gold in 2019 according to The World Gold Council

"As we look ahead, we expect that the interplay between market risk and economic growth in 2019 will drive gold demand. And we explore three key trends that we expect will influence its price performance: financial market instability, monetary policy and the US dollar, and structural economic reforms. Against this backdrop, we believe that gold has an increasingly relevant role to play in investors' portfolios."

Why Gold is Valuable

According to The World Gold Council there are four attributes that make gold a valuable strategic asset:

  • it provides a source of return
  • it has a low correlation to major asset classes in both expansionary and recessionary periods
  • it is a mainstream asset that is as liquid as other financial securities
  • it has a history of improved portfolio risk-adjusted returns.

In 2018 these factors all came into play in gold’s price performance relative to other assets. As the chart below shows, gold outperformed shares, commodities, and balanced funds for the year:

 

world-gold-council-why-gold-2019

 

(Note: the "Long USD Gold" line on the chart is an index of gold performance in currencies other than the U. S. Dollar, including the Euro, the Japanese Yen, and the British Pound).

Why Gold now in 2019

In 2019 the Council expects a carry-over of the three main factors that drove gold performance in 2018:

  • financial market instability
  • monetary policy and the U.S. Dollar
  • structural economic reforms

The first factor drives gold performance as investors seek safe havens from market volatility, which has continued so far this year.

The second factor affects gold’s headline USD price, but the U.S. Federal Reserve is expressing a more neutral stance from the policies that drove relative dollar strength last year.

And the third factor, economic reform that will continue to support demand for gold in jewellery, technology and as means of savings, looks to continue especially in the countries across Asia that are responsible for 70% of global gold demand.

So Happy New Year to all our customers, and we hope you will make it a golden one!

Read full report from the World Gold Council.

Read more about gold liquidity

Follow SendGold on Facebook

 


Steve Wilson

December 17, 2018

Public blockchain consensus algorithms create order out of chaos.

They literally produce an agreed ordering of real-time entries on a shared ledger, in a special case where we choose to have no administrator, thus creating an official account of all transactions.

But do you actually need Consensus

“Consensus” is a beguiling property of blockchain which is actually difficult to generalise beyond cryptocurrency. Consensus is not what many people think it is. Most of the broader blockchain applications don’t need to reach consensus about the state of a ledger in the same way as Bitcoin does. And they can do without Bitcoin’s infamous overhead and processing delays. The problem space of the Bitcoin blockchain is non-fiat digital money; that is, electronic cash transacted with no intermediaries or regulator, and no registration of account holders. There are digital money solutions such as Digicash which use a central “mint” to oversee transactions and prevent double spend, but cryptocurrency advocates remained unhappy with centralised architectures until Nakamoto arrived. Nakamoto’s pioneering blockchain crowdsources the monitoring of transactions, with the network periodically reaching agreement on blocks of accepted transactions, which it commits to the shared ledger.

Singular Purpose

The consensus reached by blockchain is about one thing only: the order in which transactions are deemed to have occurred, for this is sufficient to prevent double spend (in Hyperledger Fabric, this function is explicitly named the Ordering Service). Cryptocurrency architects are free to reject central administration, yet very few real-world business settings are like that. Programs with intrinsic administration – such as education, healthcare, elections and land titles – don’t need to crowdsource questions about the state of their data. Blockchain consensus creates order out of the deliberate chaos of cryptocurrency, where key holders go unregistered. Many extended blockchain use cases, such as IoT or supply chain, have no such disorder. These networks are orderly to begin with, and don’t need an elaborate consensus algorithm to work out what’s going on.

Manager or Crowdsource

When analysing potential blockchain use cases, always ask precisely what any consensus is about. Is it beneficial to crowdsource the monitoring of a network if it’s cheaper or more natural to have a manager?   Follow SendGold on Facebook  


Mark Pey

January 15, 2019

Why Gold in 2019 according to The World Gold Council

"As we look ahead, we expect that the interplay between market risk and economic growth in 2019 will drive gold demand. And we explore three key trends that we expect will influence its price performance: financial market instability, monetary policy and the US dollar, and structural economic reforms. Against this backdrop, we believe that gold has an increasingly relevant role to play in investors' portfolios."

Why Gold is Valuable

According to The World Gold Council there are four attributes that make gold a valuable strategic asset:

  • it provides a source of return
  • it has a low correlation to major asset classes in both expansionary and recessionary periods
  • it is a mainstream asset that is as liquid as other financial securities
  • it has a history of improved portfolio risk-adjusted returns.

In 2018 these factors all came into play in gold’s price performance relative to other assets. As the chart below shows, gold outperformed shares, commodities, and balanced funds for the year:

 

world-gold-council-why-gold-2019

 

(Note: the "Long USD Gold" line on the chart is an index of gold performance in currencies other than the U. S. Dollar, including the Euro, the Japanese Yen, and the British Pound).

Why Gold now in 2019

In 2019 the Council expects a carry-over of the three main factors that drove gold performance in 2018:

  • financial market instability
  • monetary policy and the U.S. Dollar
  • structural economic reforms

The first factor drives gold performance as investors seek safe havens from market volatility, which has continued so far this year.

The second factor affects gold’s headline USD price, but the U.S. Federal Reserve is expressing a more neutral stance from the policies that drove relative dollar strength last year.

And the third factor, economic reform that will continue to support demand for gold in jewellery, technology and as means of savings, looks to continue especially in the countries across Asia that are responsible for 70% of global gold demand.

So Happy New Year to all our customers, and we hope you will make it a golden one!

Read full report from the World Gold Council.

Read more about gold liquidity

Follow SendGold on Facebook

 


Steve Wilson

December 17, 2018

Public blockchain consensus algorithms create order out of chaos.

They literally produce an agreed ordering of real-time entries on a shared ledger, in a special case where we choose to have no administrator, thus creating an official account of all transactions.

But do you actually need Consensus

“Consensus” is a beguiling property of blockchain which is actually difficult to generalise beyond cryptocurrency. Consensus is not what many people think it is. Most of the broader blockchain applications don’t need to reach consensus about the state of a ledger in the same way as Bitcoin does. And they can do without Bitcoin’s infamous overhead and processing delays. The problem space of the Bitcoin blockchain is non-fiat digital money; that is, electronic cash transacted with no intermediaries or regulator, and no registration of account holders. There are digital money solutions such as Digicash which use a central “mint” to oversee transactions and prevent double spend, but cryptocurrency advocates remained unhappy with centralised architectures until Nakamoto arrived. Nakamoto’s pioneering blockchain crowdsources the monitoring of transactions, with the network periodically reaching agreement on blocks of accepted transactions, which it commits to the shared ledger.

Singular Purpose

The consensus reached by blockchain is about one thing only: the order in which transactions are deemed to have occurred, for this is sufficient to prevent double spend (in Hyperledger Fabric, this function is explicitly named the Ordering Service). Cryptocurrency architects are free to reject central administration, yet very few real-world business settings are like that. Programs with intrinsic administration – such as education, healthcare, elections and land titles – don’t need to crowdsource questions about the state of their data. Blockchain consensus creates order out of the deliberate chaos of cryptocurrency, where key holders go unregistered. Many extended blockchain use cases, such as IoT or supply chain, have no such disorder. These networks are orderly to begin with, and don’t need an elaborate consensus algorithm to work out what’s going on.

Manager or Crowdsource

When analysing potential blockchain use cases, always ask precisely what any consensus is about. Is it beneficial to crowdsource the monitoring of a network if it’s cheaper or more natural to have a manager?   Follow SendGold on Facebook  


Mark Pey

November 29, 2018

At SendGold we have always believed that one of the big advantages for owning SendGold gold is liquidity.

Liquidity. Simply put, an asset is liquid if you can buy or sell as much as you need, anytime you need, at a reasonable price. Gold is one of the most liquid assets in the workd. The daily trading volume in the gold markets even exceeds the daily share trading volumes in the entire S&P 500 index: By contrast, the headlines about liquidity in the cryptocurrency markets are not very positive at the moment: Token Liquid-ity Plummets Leaving Bag Holders High and Dry We’re big believers in the promise of blockchain record keeping and distribution channels when coupled with a top-quality asset like gold bullion. Gold has proven, deep, highly-liquid markets and broad usage and ownership across a variety of different industries. There’s gold in the smartphone in your hand, in the NASA Rover that landed on the surface of Mars this week, and in the vaults of the biggest investors and governments in the world. We think these are advantages that will be difficult for any new software algorithms to match. SendGold is focused on becoming a strong stablecoin contender with SendGold Coin (SGC)   Follow SendGold on Facebook  


Mark Pey

January 15, 2019

Why Gold in 2019 according to The World Gold Council

"As we look ahead, we expect that the interplay between market risk and economic growth in 2019 will drive gold demand. And we explore three key trends that we expect will influence its price performance: financial market instability, monetary policy and the US dollar, and structural economic reforms. Against this backdrop, we believe that gold has an increasingly relevant role to play in investors' portfolios."

Why Gold is Valuable

According to The World Gold Council there are four attributes that make gold a valuable strategic asset:

  • it provides a source of return
  • it has a low correlation to major asset classes in both expansionary and recessionary periods
  • it is a mainstream asset that is as liquid as other financial securities
  • it has a history of improved portfolio risk-adjusted returns.

In 2018 these factors all came into play in gold’s price performance relative to other assets. As the chart below shows, gold outperformed shares, commodities, and balanced funds for the year:

 

world-gold-council-why-gold-2019

 

(Note: the "Long USD Gold" line on the chart is an index of gold performance in currencies other than the U. S. Dollar, including the Euro, the Japanese Yen, and the British Pound).

Why Gold now in 2019

In 2019 the Council expects a carry-over of the three main factors that drove gold performance in 2018:

  • financial market instability
  • monetary policy and the U.S. Dollar
  • structural economic reforms

The first factor drives gold performance as investors seek safe havens from market volatility, which has continued so far this year.

The second factor affects gold’s headline USD price, but the U.S. Federal Reserve is expressing a more neutral stance from the policies that drove relative dollar strength last year.

And the third factor, economic reform that will continue to support demand for gold in jewellery, technology and as means of savings, looks to continue especially in the countries across Asia that are responsible for 70% of global gold demand.

So Happy New Year to all our customers, and we hope you will make it a golden one!

Read full report from the World Gold Council.

Read more about gold liquidity

Follow SendGold on Facebook

 


Steve Wilson

December 17, 2018

Public blockchain consensus algorithms create order out of chaos.

They literally produce an agreed ordering of real-time entries on a shared ledger, in a special case where we choose to have no administrator, thus creating an official account of all transactions.

But do you actually need Consensus

“Consensus” is a beguiling property of blockchain which is actually difficult to generalise beyond cryptocurrency. Consensus is not what many people think it is. Most of the broader blockchain applications don’t need to reach consensus about the state of a ledger in the same way as Bitcoin does. And they can do without Bitcoin’s infamous overhead and processing delays. The problem space of the Bitcoin blockchain is non-fiat digital money; that is, electronic cash transacted with no intermediaries or regulator, and no registration of account holders. There are digital money solutions such as Digicash which use a central “mint” to oversee transactions and prevent double spend, but cryptocurrency advocates remained unhappy with centralised architectures until Nakamoto arrived. Nakamoto’s pioneering blockchain crowdsources the monitoring of transactions, with the network periodically reaching agreement on blocks of accepted transactions, which it commits to the shared ledger.

Singular Purpose

The consensus reached by blockchain is about one thing only: the order in which transactions are deemed to have occurred, for this is sufficient to prevent double spend (in Hyperledger Fabric, this function is explicitly named the Ordering Service). Cryptocurrency architects are free to reject central administration, yet very few real-world business settings are like that. Programs with intrinsic administration – such as education, healthcare, elections and land titles – don’t need to crowdsource questions about the state of their data. Blockchain consensus creates order out of the deliberate chaos of cryptocurrency, where key holders go unregistered. Many extended blockchain use cases, such as IoT or supply chain, have no such disorder. These networks are orderly to begin with, and don’t need an elaborate consensus algorithm to work out what’s going on.

Manager or Crowdsource

When analysing potential blockchain use cases, always ask precisely what any consensus is about. Is it beneficial to crowdsource the monitoring of a network if it’s cheaper or more natural to have a manager?   Follow SendGold on Facebook  


Mark Pey

November 29, 2018

At SendGold we have always believed that one of the big advantages for owning SendGold gold is liquidity.

Liquidity. Simply put, an asset is liquid if you can buy or sell as much as you need, anytime you need, at a reasonable price. Gold is one of the most liquid assets in the workd. The daily trading volume in the gold markets even exceeds the daily share trading volumes in the entire S&P 500 index: By contrast, the headlines about liquidity in the cryptocurrency markets are not very positive at the moment: Token Liquid-ity Plummets Leaving Bag Holders High and Dry We’re big believers in the promise of blockchain record keeping and distribution channels when coupled with a top-quality asset like gold bullion. Gold has proven, deep, highly-liquid markets and broad usage and ownership across a variety of different industries. There’s gold in the smartphone in your hand, in the NASA Rover that landed on the surface of Mars this week, and in the vaults of the biggest investors and governments in the world. We think these are advantages that will be difficult for any new software algorithms to match. SendGold is focused on becoming a strong stablecoin contender with SendGold Coin (SGC)   Follow SendGold on Facebook  


Mark Pey

November 22, 2018

The recent drop in cryptocurrency prices was triggered in part by the strong actions announced by the U.S. SEC clarifying that market functions like custody and asset exchange are subject to strict enforcement of securities laws regardless of which software mechanisms are being used.

We think these actions by the SEC are an overdue and positive step in the right direction that will help the industry mature and weed out the high risk business models.

https://www.clearyenforcementwatch.com/2018/11/sec-brings-first-enforcement-action-digital-assets-trading-platform-failure-register-securities-exchange/ In particular the SEC ruled that developers of “smart contracts” were responsible for the operations of those contracts even if those operations were automated once they were put into production. At SendGold it has always been non-negotiable that we offer one of the world’s top-quality assets in a clear and unambiguous legal structure that protects our customers, and our blockchain distribution channel is no exception to this. We think these actions by the SEC are an overdue and positive step in the right direction that will help the industry mature and weed out the high risk business models. https://www.sendgold.com/where-is-your-gold-and-what-about-security/ Follow SendGold on Facebook