⚖️In Gold we Trust
From Chaos comes Order
When the world is in chaos:
Countries with high governmental debt need to get rescue financing by central banks
TPI is out of control (Transmission Protection Instrument) and acts like "whatever it takes"
Economy is in crisis
All you need is a reliable financial assets.
You can see FIAT currencies fail in real-time:
Japan Yen: down 20+% in 2 yeas
European Euro: down 25% in 3 years (compared to US dollar)
British Pound: down 8% within 2 days in September
But what about the health of states:
USA: 125 dept / GDP
GB: 101% debt / GDP
EU: 96% debt / GDP
Japan: 247% debt / GDP
All this puts FIAT currencies massively at risk.
E-TABBY has chosen physical Gold as central backing of it's payment & investment token "TABBY" because Gold has shown to grow in price according to inflation. And setting up a real stable coin is all about managing inflation risks.
Gold (out-)performs
Looking at the year open and year closing rates one can see quickly that overall Gold is performing at a massive pace. This is tied to the decrease of value of FIAT currencies.
So question: is a stable coin just a coin that is pegged to FIAT? The answer is: NO. A stable coin needs to balance out FIAT moves, what in fact is, what Gold does.
Year
Average Closing Price
Year Open
Year High
Year Low
Year Close
Annual % Change
2022
$1,824.64
$1,800.10
$2,043.30
$1,628.07
$1,660.88
-9.17%
2021
$1,798.89
$1,946.60
$1,954.40
$1,678.00
$1,828.60
-3.51%
2020
$1,773.73
$1,520.55
$2,058.40
$1,472.35
$1,895.10
24.43%
2019
$1,393.34
$1,287.20
$1,542.60
$1,270.05
$1,523.00
18.83%
2018
$1,268.93
$1,312.80
$1,360.25
$1,176.70
$1,281.65
-1.15%
2017
$1,260.39
$1,162.00
$1,351.20
$1,162.00
$1,296.50
12.57%
2016
$1,251.92
$1,075.20
$1,372.60
$1,073.60
$1,151.70
8.63%
2015
$1,158.86
$1,184.25
$1,298.00
$1,049.60
$1,060.20
-11.59%
2014
$1,266.06
$1,219.75
$1,379.00
$1,144.50
$1,199.25
-0.19%
2013
$1,409.51
$1,681.50
$1,692.50
$1,192.75
$1,201.50
-27.79%
2012
$1,668.86
$1,590.00
$1,790.00
$1,537.50
$1,664.00
5.68%
2011
$1,573.16
$1,405.50
$1,896.50
$1,316.00
$1,574.50
11.65%
2010
$1,226.66
$1,113.00
$1,426.00
$1,052.25
$1,410.25
27.74%
2009
$973.66
$869.75
$1,218.25
$813.00
$1,104.00
27.63%
2008
$872.37
$840.75
$1,023.50
$692.50
$865.00
3.41%
2007
$696.43
$640.75
$841.75
$608.30
$836.50
31.59%
2006
$604.34
$520.75
$725.75
$520.75
$635.70
23.92%
*table source: https://www.macrotrends.net/1333/historical-gold-prices-100-year-chart
Gold, a Hedge against FIAT risk
On 10 June 2019 the People’s Bank reported that China’s national gold reserves grew by 15.6 tonnes in May to 1,916 tonnes. (And it’s highly likely that China is not revealing their true gold holdings – they’re likely much higher than the official figure).
ln the Far East, if you want to come together, we should start with a common trading currency, not to be used locally but for the purpose of settling of trade. The currency that we propose should be based on gold because gold is much more stable. - prime minister of Malaysia, Mahathir Mohamad.
There is no way back to a solid Gold-backing of any FIAT currency. No tapering in the world could lead us back to a reasonable amount of FIAT supply that actually be backed-up by the actual Gold supply.
In Gold we Trust.
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