Revix has just announced the launch of an Inflation Shield product combining two safe-haven assets – gold and Bitcoin (BTC) – into a single product.
The Inflation Shield combines PaxGold (PAXG), a tokenised version of gold that is fully backed by real gold, and BTC.
In this bundle, you get exposure to PAXG, a tokenised 1:1 backed version of physical gold held in London Brink’s vaults, and BTC.
“This bundle’s objective is to protect your wealth against inflation while minimising downside risk. Gold has the longest and most successful track record in beating inflation, but many are starting to view Bitcoin as a ‘digital gold of the millennial age’. The Inflation Shield bundle is a way to take the inflation hedges of yesterday and blend them with the inflation hedges of tomorrow,” says Brett Hope Robertson, investment analyst at Revix.
The bundle comprises 25% BTC and 75% PAXG. That ratio is algorithmically determined and is automatically rebalanced each month.
The product was designed and tested by Revix to optimise returns while minimising downside risk, adds Hope Robertson.
“This is a unique approach to protecting oneself against risk – whether that is the risk of inflation, depreciating currencies, war or stock market uncertainty. The objective is not to deliver the kind of crazy returns we have seen from cryptos over the last few years, but to protect and preserve capital, while delivering the ability to partake in the crypto uptick.
“It’s like holding gold with a call option on crypto attached.”
Algorithmic and rule-based
The ratio of gold to BTC is based on a historic risk versus return optimisation algorithm. By evaluating past returns over the last seven years, the Inflation Shield’s rule-set was created outlining the optimal proportion of gold and BTC that resulted in the highest overall return while minimising negative price movements.
Automatic monthly rebalancing
This bundle automatically rebalances on the first of every month. This process realigns the weights of gold and BTC by buying or selling each asset to ensure the ratio remains constant. This ensures investors get exposure to two assets in their optimal proportions to best protect their wealth against the ravages of inflation and uncertainty.
Hope Robertson says the bundle is designed to protect wealth during times of uncertainty and market volatility while allowing investors to participate in any upside performance should the markets return to normal.
Gold’s role as a safe-haven asset in times of crisis
Gold has historically been a safe-haven asset in times of uncertainty. An analysis of gold’s response to financial crises between 2008 and 2020 by Sprott Asset Management reinforces gold’s status as a hedge against threats to the financial system, outperforming the S&P 500 and US Treasuries in all six crises examined.
This was most noticeable during the Covid-19 pandemic of 2020, when gold shot up 25%, against 18% for the S&P 500 and 8% for US Treasuries.
How gold performed in times of crisis 2008-2020
As impressive as that is, it pales alongside Bitcoin’s (BTC) proven ability to protect investors against financial risk.
A recent analysis by CaseBitcoin shows a compound annual average growth rate of just short of 200% over the last decade. The unprecedented growth was by no means a smooth ride, with massive pullbacks along the way – 84% in 2018 and 50% in 2021.
Though BTC has tended to follow the financial markets down in recent months, causing some to question its safe-haven capabilities, there is no question that, measured over the longer term, it has provided the best protection in the last decade – and possibly in history – against financial risk.
Hope Robertson says the correlation of BTC with indices such as the tech-heavy Nasdaq is likely to turn out to be temporary, as BTC has continued to prove itself against all attempts to ban, censor and diminish it.
“In previous times, gold was the default safe-haven asset, and it has proved itself capable of protecting wealth through the ages,” he says. “But never before have we had the opportunity to combine the old-world safe-haven functionality of gold with the new-world functionality of BTC. We’re excited by this product, and we believe that as brilliant as gold is against risk and uncertainty, we went one better by combining it with Bitcoin in this bundle.”
Who should acquire the Inflation Shield?
Hope Robertson says the product is for anyone concerned about current market instability or fearful of what will happen to their wealth in the months and years ahead.
“In essence, it is designed to protect investors’ wealth against the corrosive powers of inflation and preserve their purchasing power over time, while allowing them to take part in the sudden crypto market upticks that seem to take place when market uncertainty diminishes.”
Revix Inflation Shield promotion
Revix is launching the Inflation Shield on Friday, March 11. With this launch, Revix is offering a dual promotion.
- Revix is offering 0% buy-in fees on the Inflation Shield bundle purchases using ZAR for one week, starting on March 11 and ending on March 17, 2022.
- Revix will cover any losses made on the bundle up to the end of March. All the customer needs to do to partake in the cover promotion is make a deposit and invest R20 000 into the bundle during the fee-free week (March 11-17).
Revix brings simplicity, trust and great customer service to investing. Its easy-to-use online platform allows anyone to securely own the world’s top investments in just a few clicks.
Revix guides new clients through the sign-up process to their first deposit and first investment. Once set up, most customers manage their own portfolio but can access support from the Revix team at any time.
For more information, please visit www.revix.com.
Brought to you by Revix.
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