Sydney-based FinTech SendGold launches SMSF capability
Sydney-based fintech SendGold has brought one of history’s more reliable assets into the digital age. SendGold is a global mobile app which allows people in 13 countries, to buy, sell and send 100% title to physical gold, which is stored on their behalf in secure independent vaults in Australia.
Since January, at the start of the Covid-19 global pandemic, SendGold has seen gold transaction volumes increase by 819%, with a 311% increase in average transaction size. Not only are people seeking to protect their wealth by hedging against inflation and counterparty risk, COVID-19 has also meant that people want to control more of their assets digitally from their homes.
One of the most requested developments from its customers has been the capability to invest in gold using SendGold with an SMSF which is a capability that has been launched this week.
Jodi Stanton CEO of SendGold said, “We’re excited that we now have capability for our customers to invest in gold with their SMSF using the SendGold platform. It’s great to be able to help protect superannuation and retirement investments in the same way we’ve being helping individuals to de-risk their investment portfolios in these uncertain times.”
Traditionally there have been three reasons why people have invested in gold:
- It preserves wealth and is a hedge against declining currencies and inflation – an oz. of gold has always bought a suit on Savile Row.
- It is considered a safe haven during times of political and economic uncertainty which have historically seen collapsing empires, political coups, and the collapse of currencies.
- It’s seen as a diversifying investment as it is not correlated to stocks, bonds, and real estate. Gold prices often run counter to stock market performance.
Even before the COVID crisis:
- Gold has outperformed both shares and bonds for 10 and 20 years (PwC)
- Gold has kept pace with Australian housing market since 2000
This month shares have rebounded after a steep fall, but the companies underlying those shares have seen a 50% drop in earnings. As for bonds, Interest rates are heading to zero, and negative in some markets.
In the aftermath of the GFC, currencies worldwide lost their buying power and gold started a 12-year bull-run gaining 670% against the USD.
Has gold further to run? Last week Bank of America increased its 18-month gold target price from USD $2,000/oz to USD$3,000/oz from a current price of approximately USD $1,700/oz.
Stanton adds, “We feel Gold is a long term play. We strongly believe that gold will prove to be a profitable investment over the course of this decade providing security in any portfolio.”