Feb 12
Comdex — Gold
The synthetics DEX of Comdex is approaching fast. In a couple of weeks we will be able to get our hands on digital version of real world commodities and be able to speculate on what their price will do. The opportunities to expose yourself to a wide variety of assets besides only crypto is a major gamechanger.
Initially the DEX will “only” offer gold, silver and oil, but more assets will be available in the future. If you want to learn more about Comdex in general read this article. If you want to learn more about commidities in general read this article.
In this article we will dive into one of the assets which will be available; gold.
Gold in ancient times
Gold has been valued as a precious metal for a very very long time. In Eqyptian times it was already seen as a payment method. Hieroglyphs have been found dating back to the 26th century B.C. stating that fact.
Using gold to create coins is continued to mid 20th century, so it has a very long history.
Gold has also a history of being hunted (pirates anyone?) and triggering frenzies (who can’t remember the good old gold rush?).
But is also has powered powerful myths. In ancient times people thought gold had magical powers and alchemists spend ages to find the Philosophers Stone. But to no avail…
Gold as an store of value
Nowadays we know gold more as a store of value or a investment opportunity. Gold has long had the role to serve as collateral for the national treasuries of countries until early 1970’s. From that moment on the gold price was determined by supply and demand, resulting in the scenario we are right now. It has to be noted that during times of economic unrest due to crises and wars gold is seen as a safe heaven, pushing the prices upwards.
If we assess the price development of gold over the last 20 years, it can be seen that it has been a very good investment opportunity overall. As explained in this article commodities tend to move slower with respect to bull and beartrends and gold is no exception. Gold started a bullrun in 2001 which ended in 2011, only to retrace less than 50% before continiuing its trend. Since 2016 the price is on the rise again and who knows where it will bring us?
Comdex will offer you the possibility to expose yourself to the price movements of gold without the hassle of regular commodities exchanges. With your $XPRT, $ATOM, $UST and $CMDX you can mint your own synthetic gold and enjoy the ride!
