Digital Gold: A Game Changer

Anissa Boulahya, Corporate Director at DD Metals DMCC, explains ‘How Digital Gold is a Game Changer for Investors?’.

Hello and welcome. I’m Anissa Boulahya from AgaBullion, Director, Business Development. Today, I will provide you insights on ‘How Digital Gold is a Game Changer for Investors?’ 

But before, let’s explore the basics. What is physical gold investment?

The yellow metal has only seen increasing demand over the years. It is purchased in the form of jewelry, gold coins, and biscuits (mini-bars) It can be bought directly from a jeweler, authorized institutions selling gold, and a bank with no involvement of an intermediary. Hence there is no counterparty risk. It can be liquidated anywhere in the world. 

Benefits of investing in physical gold investment

  • Gold has been the most desired and prized precious metal. The appetite to possess this metal has only been increasing in the past.
  • Gold is considered to be an inflation-proof investment. For example, one can purchase gold today with the money they have. In the future, they can sell it and recoup the changes.
  • Gold never loses its intrinsic value. History proves that metal has always been in demand. Even during a crisis, one can easily sell the asset.
  • Investors can pledge their physical gold and avail loans against them.
  • One can pass on their physical gold to the next generations.
  • Gold doesn’t depreciate over time like many other assets.

Central Banks of China and Turkey have clamped down on the use of cryptocurrencies as a form of settling payments against the procurement of goods and services.
It comes as no surprise. In fact, it was about time for this bubble to burst. And it should be noted that these central banks and jurisdictions are just the beginning. In short, cryptocurrency exchanges and platforms are not regulated. Tokens traded have skewed pricing basis investor perception and does not follow any sound fundamentals. It is an easy boom or bust scenario in a relatively short time. Its volatility that leads to gains and losses are not for the faint hearted.
It is definitely not a medium for wealth preservation. By this we mean, the common individuals life-time savings over the longer term. Physical Gold is a long standing store of value for centuries. It is proven that it is the only alternative asset class that provides immediate liquidity and has no country borders. It is globally accepted as a reserve asset to the currency.

Investing in physical gold has its drawbacks. The cost of carrying and storing gold is higher. Additionally, physical gold will have higher making charges than digital gold. Moreover, there is always a risk of theft. An alternative to investing in physical gold is digital gold. Investing in digital gold is considered to be a cost-effective and efficient way of investing in gold.

Enter the Game Changer - A crypto that is physically backed by gold and derives it price basis globally traded transparent benchmarks. A token holder is a secured creditor as ownership of the physical is allocated to each individual using the very latest blockchain technology. Account status, currency and physical balances are updated on a real-time basis on the digital wallet for the holder to access anywhere at anytime.

Benefits of investing in digital gold

  • Invest small amounts: Investors may invest small amounts of money in digital gold. There are no restrictions or minimum purchase limits. Hence one can consider digital gold for small investments. 
  • Redemption: These can be quickly and easily redeemed. The redemptions can be in physical gold coins or bars. Also, one can cash out their investment without any hassle. One can easily buy and sell the units. 
  • Safety: The digital gold assets are insured and securely deposited in a vault. As a result, the risk of robbery is eliminated. The responsibility of the gold lies with the seller.
  • Portfolio diversification: It is a good investment option for portfolio diversification and is also a good asset for hedging.
  • Real-time rates: The digital platforms offer real-time gold rates. Therefore, the investor can take advantage of the price movements and make purchases.

The future of physically backed Crypto is now and it will continue to evolve. We expect its popularity with the masses to soar exponentially in a relatively short span of time.

Thank you for watching me. Please stay tuned for more such insightful videos on various topics in the global gold industry. Stay Safe and See you soon.