At this point in time, level of inflation remains very low in developed industrial countries. By contrast, in developing countries in Africa, South America and south Asia, the rate of inflation is high, thus making gold the best hedging asset to protect one's savings from devaluation.
Gold is by far the best protection from hidden losses of value – that is, inflation, which gradually and imperceptibly eats away the purchasing power of paper money (fiat). In other words, when the amount of money in circulation increases while the supply of goods and services doesn't increase in proportion, the buying power of money decreases, resulting in inflation.
When inflation exceeds the interest rate of banks' deposits, the real assets of people slowly dwindle away. However; similarly, the real value of debt also decreases. And since governments across the globe are the main debtors, they can look favourably at higher rates of inflation.
Inflation in developed countries such as the G20 nations has been low for many years. For instance, in the US, the degree of inflation is estimated at only 2.3% a year. The cash flow of money into the America's financial market led to a sharp growth in stock and real estate prices, while consumer prices remained almost unchanged. Even if the authorities adjust the inflation data slightly to make it look better, the rate is still low – for several reasons.
First, in order for the prices of things to start growing, there should be a deficit in consumer goods. Nowadays you can easily procure any good of your choice: markets are very well supplied. Easy online price discovery and high competition in retail keep pushing the prices down. Globalization plays a role as well.
On the contrary, situation is very different in developing countries, where inflation rates keep growing due to product deficits. Third World countries often depend on foreign imports, especially in the case of food and drugs. Financial authorities in these nations keep on printing money as a short-term solution. This leads to a constant decline in their national currencies' buying power and an increase in local gold prices.
Here is a list of countries with particularly high inflation rates:
Venezuela - 3.9113,80%
Zimbabwe - 521,20%
South Sudan - 170,50%
Sudan - 57,70%
Argentina - 51,40%
Liberia - 30,90%
Iran - 27,80%
In these nations, people who own gold can protect their wealth from inflation-based consumption. By contrast, those who hoard cash money are doomed to bankruptcy
✒Read about How to preserve the wealth of the world through gold
ANG coin can provide the shield.
Aureus Nummus is designed to offer a cushion again the damages of inflation and paper money devaluation. ANG coin is a digital gold that backed by the value of a real life gold. The ownership of the gold goes beyond the physical state. The tokenized gold is exclusively in the hands of the owner as only he/she will have the keys to access the currency that exists on the blockchain. The emitted tokens exist on the blockchain and key-based permissions grant access to the tokenized gold. From the moment ANG is minted, the blockchain tracks ownership. However, Aureus Nummus is more than just a means to own digital gold; it’s a means to transact and thus the foundational support goes beyond vaults and liquidity provision.
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Gold is epic!!!
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