Page 26 - Bullion World Volume 4 Issue 7 January 2024

Bullion World | Volume 4 | Issue 7 | July 2024

Gold as a Product

for Tokenization: Part-1

Mr Arjun Khazanchi, CEO and Co-Founder, Rooba Finance

The Attributes of a Good Store of Value
When considering gold as a product for tokenization, it
is essential to understand the attributes that make it a
superior store of value. Historically, many goods have
been used as stores of value, but certain attributes have
allowed gold to outcompete others:
1. Durable: Gold is not perishable and does not
degrade over time, making it an ideal store of value.
2. Portable: Gold is easy to transport and store,
facilitating long-distance trade and security against
loss or theft.
3. Fungible: One piece of gold is interchangeable
with another of equal weight and purity, solving the
coincidence of wants problem.
4. Verifiable: Gold can be quickly and easily
authenticated, increasing confidence in trade.
5. Divisible: Gold can be subdivided into smaller
units without losing value, important for precise
transactions.
6. Scarce: Gold is difficult to obtain and produce in
large quantities, tapping into the human desire for
rarity.
Mr Arjun Khazanchi
7. Established History: Gold has been perceived as
valuable for millennia, making it hard to displace.
8. Censorship-Resistant: Modern digital gold
solutions can be designed to resist external
interference, appealing to those under restrictive
Historical Context and regimes.
Attributes of Gold
These attributes make gold not only a traditional store
of value but also a promising candidate for digital
Introduction: The Historical Significance of Gold tokenization.
Gold has been a symbol of wealth and a medium of

exchange for centuries. From ancient Egypt, where
it was mined and crafted into jewelry and currency, Challenges in Traditional Gold
to its current status as a globally traded commodity, Investments and the Need for
gold's history is rich and varied. The modern gold Change
market operates on a global scale, with major hubs like
the London Bullion Market Association (LBMA), the Challenges in Traditional Gold Investments
Shanghai Gold Exchange, and the New York Mercantile While gold has long been a reliable store of wealth,
Exchange facilitating its trade.
traditional gold investments come with several

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