Digital Gold: A Convenient Path To Investing and Trading Digitized Gold
The Special Place of Gold
Gold is regarded as one of the oldest and most venerable stores of value, with a history that predates bank notes or coin currency. The precious yellow metal holds premium position in various cultures across the world. Among precious metals, there is something special about gold: its value. Gold is a reliable global store of value, an effective portfolio diversifier and also serves as a hedge against inflation.
Even during times of geopolitical tensions and economic uncertainties, gold acts as a safe financial haven. For instance, as impacts of coronavirus pandemic begins to have its toll on the world, investors have switched from consumer-focused sectors to gold. The World Gold Council announced a 1% year-on-year rise in global gold demand. According to a 2018 statistics by Euro-Phoenix, the average annual global demand for gold by sector is as follows; jewelry (51%), investment (27%), central banks and others (15%), and technology (8%). This constant demand for gold helps fuel its price.
Investing in gold is not all bed of roses
Notwithstanding its benefits, investing in physical gold is not a smooth process, it is laced with several barriers. First, gold jewelry and bullion are usually sold at a premium, often above market rate. So it will require considerable time before it can appreciate in value. Second, there is the security burden attached to owning physical gold. You need to have a safe at home to safely store your gold or else you would have to rent a safety box with a broker or a bank at a fee.
Third, selling gold could pose another drawback. Gold is sold at a premium but often bought at a discount. This means that you may not get the right price as at the time you want to exchange it for cash. Additionally, there is the problem of limited liquidity for physical gold. In most cases, selling gold requires an intermediary which results in additional cost through transaction fee.
What if there was an alternative way to invest and sell gold without passing through these highlighted ordeals?
Digital Gold is the answer!
Digital Gold leverages blockchain technology to remove the barriers associated with investing in gold without physically owning it.
About Digital Gold Project
Digital Gold is a blockchain-based platform that opens access to crypto investors to purchase tokenized gold without facing the challenges of owning physical gold. The goal of the project is to bridge the gap between gold and the digital ecosystem. Tokenized gold is unique compared to other cryptocurrency such as Bitcoin as it is backed by equivalent quantity of gold reserves held in vaults.
Digital Gold offers a competent alternative to gold exchange traded funds (ETFs) and enables investors to enjoy the full benefits of purchasing gold as an investment vehicle by harnessing the powers of cryptotechnology. Blockchain is a decentralized, transparent, immutable and secure ledger that enables storage and transfer of value. Digital Gold taps into the Ethereum blockchain to digitize gold and store records of ownership of gold on the network.
In a bid to establish trust and transparency, the total amount of gold purchased and stored in the company's secure vault can be verified at any time. This is done in partnership with BullionStar - a Singapore-based gold dealership company, which also performs an audit of the gold secured in the vault.
GOLD Token
Digital Gold has issued an ERC-20 token, called GOLD token, that users can use to easily purchase, sell, trade, store, or transfer investment-grade gold while preserving user anonymity. One GOLD token is equivalent to 1 gram of 99.99% pure gold.
GOLD token superior to other cryptocurrencies because it is backed by real gold reserves secured in company's vault. As an asset-backed cryptocurrency, GOLD allows users to trade without daily limits and with their identities kept private, all thanks to blockchain technology.
Why Own GOLD Token?
There are several benefits deri/that can be derived from owning GOLD token.
Purchase and Accumulate Digital Gold in Fractions
The smallest sized gold bars an investor can purchase is one gram. This could pose barrier for small investors without big funds. Digital Gold addresses this problem by giving investors the opportunity to purchase and accumulate gold bullion in fractional amounts. This is the biggest advantage of purchasing GOLD token.
Adequate Liquidity available for sellers to Purchase and Sell GOLD Tokens
Unlike physical gold where investors buy gold at premium and sell at a discount, with the additional risk of inferior liquidity when it is time to sell, Digital Gold provides adequate liquidity to users enabling them to purchase and sell digitized gold at a price proximal to current market prices through the Digital Gold marketplace or exchanges where GOLD token is listed.
Unlimited and Anonymous Transactions
Due to various regulations and policies, investors may have their accounts restricted, blocked or trading embargoes placed on the user. This is different with GOLD token which allows users to remain anonymous while trading digitized gold without limits.
A low-cost token with zero transfer fee
Another key advantage of owning physical gold via the GOLD token option is that it eliminates the high cost attributable to holding physical gold, which may bump up the value of the gold by as much as 30%. With GOLD token, users can transfer unlimited digitized gold without incurring unnecessary charges except for the gas fee paid for network validators.
Customers enjoy the full benefits of acquiring gold while avoiding the hitches of the physical acquisition models.
Conclusion: What you should do
Due to the way investment in physical gold works, many investors have resigned to fate that gold is out of reach for them. With Digital Gold, users can use GOLD token to conveniently purchase the shiny yellow precious metal in fractions and inch your way into being a proud owner of an ounce.
So if you are thinking of a safe and convenient way of owning gold, GOLD token is the answer.
Click the following links for more information about the project: