Digital Gold is the trending way to invest in physical gold. However as these platforms are unregulated, it is a preying zone for fraud and scamsters.
It is advisable to do your due diligence on the following factors:
-
Service Provider
Know their partners, parent organization and their source of funds -
Vault Location
If the vault is based overseas, then you could have an issue with regards converting your digital gold units to physical gold as delivery may either not be possible or too expensive. -
Trustworthiness
Ideally an independent third party should provide assurance that your digital gold units are backed by physical gold. -
Storage Insurance
Normally theft is covered by all vault operators, however areas such as natural calamities may not be included. -
Minimum Quantity for Delivery
One unit of digital gold could represent 1 gram, in which case the service provider may only permit physical delivery when you accumulate 1,000 units i.e. 1 kg gold bar. -
Pricing Basis
Whilst pricing would include the service provider's margin of profit, the purity of the metal is the basis for pricing i.e. fine gold 995, 999 or 999.9. -
Platform Accessibility
Being able to redeem the gold on a 24/7 basis is a key advantage of Digital Gold.
We encourage you to invest wisely and efficiently.
