The rapid rise in the value of the token issued by Tether was facilitated by the rise in world gold prices. Note that an ounce of gold exceeded $ 1900 for the first time in the last five years.
Tether Gold has broken its own record for value
Gold-backed XAUT token set a new price record at $ 1935 apiece. This became possible after the price of a troy ounce of gold rose to incredibly high price levels, exceeding the value of $ 1900. It should be noted that over the past five years, gold has remained virtually unchanged in price and traded at $ 1550 - $ 1600. However, since February of this year, immediately after the announcement of the coronavirus pandemic in the world, the cost of the yellow metal has gone up sharply. After the fall of the stock, commodity, foreign exchange and cryptocurrency markets, gold began to be called the only defensive asset. Note that gold not only did not lose in price during the crisis, but, on the contrary, significantly strengthened in the market.
Today the precious metal is trading at $ 1935 an ounce. Following the increase in the value of gold, the price of the XAUT token also rose. One Tether Gold token is equivalent to one troy ounce of gold.
Paolo Ardoino, CTO of Tether, noted that “in times of uncertainty, people love to have access to gold, and Tether Gold token finds a response in these times.”
As the expert predicts, XAUT will continue to increase in value against the background of the US government's announcement of the adoption of a second bill to stimulate the economy, which implies a second additional emission of the US dollar.
Schiff was right, although he was not believed
Gold is the only defensive asset. This idea was previously put forward by the famous bitcoin hater and supporter of traditional investments Peter Schiff. He said that the price of gold will exceed record levels amid massive purchases of the precious metal by governments of various countries.
Then, few believed in Schiff's predictions, and the crypto community even launched a meme that ridiculed the expert's predictions. However, just a few weeks after this incident, gold really began to increase in price, and retail investors began to declare that the precious metal was more suitable for investing than bitcoin.
In particular, the CEO of the digital bank Galaxy Digital Holdings, Mike Novogratz, in an interview with CNBC Fast Money, urged to stock up on gold rather than bitcoin due to the high volatility of the cryptocurrency asset.
Gold was also supported by renowned investor and author of the bestselling Rich Dad Poor Dad Robert Kiyosaki. He does not deny that he invests in gold, silver and partly in bitcoin. And although crypto coins have not yet become widespread in society, the bestselling author believes that the number of crypto investors will increase every year.