Tether Gold (XAUT) and gold itself was valued above $1,900 today for the first time since Septmber 2011.
Tether Gold stablecoin got to $1,902 on July 24. This made the value of gold rise high to around its September ATH figure.
The price of gold increased from $1,550 to $1,902. The jump in value can be attributed to the emergence of Tether Gold (XAUT) on January 23 this year, which is Tether’s stable coin backed by gold and stored in a Swiss vault. Tether gold became very popular because it allowed people to own as little as one troy ounce of gold (about 31.1grams). The Wall Street Journal reported that its price reached $1,897.50 on July 24, just a little below its intraday high of $1,921 recorded in 2011.
The price increase happened three days after the second stimulus check for U.S. residents was announced. The check is aimed at reducing the challenges caused by COVID-19.
The CTO of Tether, Paulo Ardoino, thinks the value rose because people were uncertain of what the stimulus check could do to the value of their currency
Choosing between bitcoin and gold
Finally, the price of Bitcoin surpassed $10,000 again after a long while of trading between $9,000 and $9,500.
Peter Schiff and other investors in gold believe that gold is a better option that Bitcoin when it comes to stability. He added that gold investors are aware that the commodity may not make them rich like investing in Bitcoin does but it gives more peace of mind because it is a less volatile asset.
Schiff has not relented in saying that there must be “a big drop” in the price of BTC someday.
It has also been reported that the USDT reached a market capitalization of over $10 billion last week.