For centuries, gold has been considered a safe haven investment and one that provides a hedge against inflation. During this global pandemic we have witnessed markets fall in unison as investors turn to the relative safety of cash and cash equivalents. Although gold had an initial sell-off in the wake of investor fear, the age-old safe-haven asset is poised for significant growth given the immense increase in money supply by global reserve banks to buoy demand.
During the last recession, from 2007 to 2009, one of the best performing assets was this precious metal. A significant reason for the gold rally experienced during, and after, this period was due to the massive quantitative easing and increased money supply by the US government. Gold has long been an inflation hedge and an asset that has held its purchasing power for thousands of years. When legacy financial assets are compromised, investors have traditionally turned to gold as their store of value.
So far gold has been relatively immune to the financial crisis caused by the coronavirus. All assets, including gold, experienced an initial shock as markets sold whatever they could, instead of whatever they should. Gold has subsequently, however, seen a great rebound and has sufficiently maintained its value during this period.
Introducing the Invictus Gold Plus Fund
A popular traditional way to gain direct exposure to gold is to buy the largest gold ETF, SPDR Gold Shares (GLD). In this digital age, however, you are presented with the opportunity to invest in gold, while earning interest on your exposure through our Invictus Gold Plus Fund (IGP). Invictus is excited to present this open ended fund that tracks the underlying gold price and earns an additional yield on your investment. The objective of the fund is, therefore, to outperform gold as a benchmark over the longer term. Our fund’s redemptions and subscriptions would be in TUSD (with USDT being a possibility for larger investments) in order to avoid being exposed to the crypto market.
The Fund will be held predominantly in gold-backed tokens, namely Tether Gold (XAUT) and PAX Gold (PAXG), with a small portion invested in our Margin Lending Fund (IML) for liquidity purposes. The targeted outperformance will be accomplished by taking advantage of arbitrage opportunities and utilizing our proprietary software to margin lend the underlying tokens on platforms such as Bitfinex. These margin lending rates spike in line with trading activity and have surged dramatically (25% APR as of date of publishing) due to recent uptick in market demand.
To register interest, please follow this link to our Gold Plus Fund Landing Page where you can leave your name and email for a member of the business development team to contact you and provide more information.