Digital Gold Investment, Safe or Not?

Jakarta, Pintu News – In the digital era, the way we invest has also changed. Now, you can invest in gold without the need to store its physical form through digital gold. This asset is purchased through an application or online investment platform that has physical gold reserves in an authorized custodian.

Digital gold is increasing in popularity due to its convenience and accessibility. You can start small, monitor real-time prices, and sell at any time without the hassle of going to a gold shop. But before you start, it’s important to understand the benefits and risks so you don’t make the wrong move.

Advantages of Digital Gold Investment

Here are some of the main advantages of digital gold investment that make it increasingly attractive to modern investors:

1. Easy to Access and Flexible
   You can buy digital gold starting from a small amount only through the application on your smartphone. Transactions can be done at any time, without time and place limits.
2. Prices Follow the Global Market
   The value of digital gold moves according to the world gold price, so the potential for price increases and decreases is transparent and easy to monitor.
3. No Physical Storage Required
   Your gold is safely stored in a trusted custodian institution, so you don’t have to worry about storage or the risk of loss.
4. Legal and Supervised by OJK
   Many digital gold platforms in Indonesia are officially licensed and directly supervised by the Financial Services Authority (OJK), such as Indogold, Lakuemas, and Pegadaian Digital.
5. Suitable for Asset Diversification
   Due to its relatively low volatility, digital gold is suitable for maintaining long-term wealth value amid economic uncertainty.

Read also: Top 10 Nickel Stocks in Indonesia

Risks of Digital Gold Investment

While digital gold may seem safe, it also comes with some risks that you need to consider before investing:

1. Risk of Unauthorized Platforms
   Not all digital gold providers are licensed or have verified physical gold reserves. Avoid platforms that are not registered with OJK or do not have official cooperation with certified gold depositories.
2. Can’t Hold It in Your Hand
   Digital gold is virtual, so you can’t touch or store it yourself unless you redeem it for physical gold-which usually comes with an additional fee.
3. Difference between Buy and Sell Price (Spread)
   Each platform has a different buy and sell price spread. The bigger the spread, the smaller the net profit you can make when selling.
4. Technical Risks and Data Security
   Since it is digital-based, potential risks such as system disruption, hacking, or theft of user data remain. Choose a platform with a layered security system and data encryption.
5. Liquidity and Withdrawal Policy
   Some platforms may have longer disbursement processing times or additional fees when selling gold. Make sure you understand these policies before making a transaction.

Digital Gold: When Physical Assets Meet Crypto Technology

As blockchain technology develops, gold can now be owned not only in physical form such as jewelry or bars, but also in digital form through gold-based crypto assets.

One of the most popular is Pax Gold (PAXG), a token that represents direct ownership of physical gold. Each PAXG token is equivalent to one troy ounce (approximately 31.1 grams) of London Good Delivery gold bullion, which is securely stored in Brink’s vaults.

PAXG tokens are available and traded on various crypto exchanges. PAXG is also an attractive alternative for those looking to hedge against inflation or global economic uncertainty, while remaining within the digital asset ecosystem.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Trading crypto carries high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

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