The Addition of iGold/iSilver as Assets

I would like to see the addition of iGold and iSilver as assets. As much as everyone is interested in dollar backed stable coins, it is important to remember that fiat currencies are inflationary, far more so than most are wiling to admit.

Despite the official inflation rate of ~8%, which is already high, real dollar inflation is estimated to be as high as ~17% and counting. As governments are certain to continue to print, there is no credible reason to believe this trend will abate. That the dollar has lost 99% of its purchasing power over the last century is par for the course. It is a historical fact that all fiat currencies ultimately go to zero.

Gold and silver, on the other hand, have an extensive history and have withstood the most unstable economic conditions for millennia. With their proven track record against monetary debasement, monetary metals provide shelter in uncertain times.

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But isn’t the point to hold gold and silver in a physical form?

I’m not sure I understand this question.

All assets are best kept in possession in terms of security. The general rule is that if you don’t hold it, it doesn’t exist. This sentiment is often encapsulated in crypto circles by the adage, “Not your keys, not your coins”. The same is true for dollars, gold, silver, etc.

But in the same way that we understand the usefulness of having a digital asset pegged to the price of dollars, euros, yen, yuan, etc., having a digital asset pegged to the price of gold and silver is useful for the same reason. Stable coins are often used to mitigate the impact of volatility. Since crypto fluctuates wildly against fiat, stables allow people to exit their positions without exiting the market entirely. In an inflationary environment (like the one we’re in now), gold and silver are more stable and resilient than any fiat currency could ever dream to be. Thus, the advantage of having a token pegged to gold and silver is self-evident.

The idea of tokenized precious metals isn’t novel. In fact, most silver and gold is traded on the “paper market”, a pernicious instrument exploited to artificially suppress the value of metals against the dollar. (A discussion for another time).

But to put it simply, in an environment where fiat money is losing purchasing power, stable coins pegged to them will lose purchasing power to a degree that assets pegged to gold and silver will not.

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He is correct. The change in purchasing power with the dollar or any currency is horrible. Creating an I asset for precious metals can show value. Especially like copper that has increased value over time due to use. Also a good stable escape away from USD. Over time those holding igold may create more value then those holding iusd. Meaning if USD ever crashes hard you can escape to igold that will help people through a change in currency. I like this idea. Also Platinum will be a good one due to industrial usage. For example in the past they used silver for quarters. As silver went up in price they had to stop putting it into quarters and replaced it with other cheaper metals.

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What he is saying it is a good holding position compared to holding iUSD to volatility in current Fiat currencies.