In a recent newsletter from the Royal Mint entitled ‘DigiGold is More Popular Than Ever’ they reveal that over the past year the Royal Mint has experienced a 374% rise in new customers investing in and trading digital precious metals through their ‘DigiGold’ platform.
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DigiGold is marketed as a more convenient way to trade in gold, silver and platinum
The digital ‘holdings’ accumulated through the DigiGold platform are 100% backed by portions of real, physical gold bars, stored securely at The Royal Mint’s vault.
Andrew Dickey, Divisional Director, Precious Metals at the royal mint adds:
“The benefits of investing in gold, silver and platinum are well known, but so are the challenges: namely security and storage. DigiGold offers a convenient alternative to owning physical precious metals. Backed by the reputation of our bullion bars, a store of wealth trusted by banks and intermediaries all over the world, we’ve designed a secure digital platform that makes investing in gold easier than ever before.”
As many investors are now used to investing and trading online through various platforms, many feel it easier to buy and sell precious metals through an online account such as DigiGold online where customers can buy gold in whatever quantity they choose – 24 hours a day, 7 days a week, 365 days a year.
One of the reasons why these ‘digital gold’ platforms are becoming more popular is the fact that customers can invest in small fractions of gold, silver or platinum, starting from as little as £25. This potentially opens up the market to a new wave of younger investors who maybe new to the idea of investing in precious metals such and gold, silver and platinum.
What are the alternatives to DigiGold?
Some alternatives include gold-backed cryptocurrencies.
With gold-backed cryptocurrencies, they are usually a type of stablecoin, whereby each digital ‘token’ is essentially backed by physical gold bullion in a secure vault.
Each digital token would usually have a fixed weight of gold.
For example, one digital token would equal one gram of gold bullion.
However, there have been literally 100’s of gold-backed cryptocurrency projects over the years, so you have to be very careful when investing in these types of gold-backed cryptos.
PAX Gold (PAXG)
One of the more established and trusted gold-backed cryptos is PAX Gold.
Essentially PAX Gold (PAXG) is a stablecoin that uses blockchain technology and is backed by a real asset, gold.
One PAX Gold token represents one fine troy ounce of a LBMA approved Good Delivery gold bar.
The gold is then stored in a professional vault facility in Brink’s vaults in London.
PAX Gold’s value is tied directly to the real-time market value of that physical gold.
Owning a PAX Gold digital token means that you own the underlying physical gold in custody by Paxos Trust Company.
The token is run on the Etherium blockchain and all transactions are done via smart contracts, giving transparency and security.
There are also other options such as Vaultoro, which is an online exchange based in the UK that allows it’s users to trade crypto such as Bitcoin or DASH for physical gold/silver bullion and vice versa, without the need to use a fiat currency or a bank account.
With Vaultoro you can essentially deposit Bitcoin or DASH and buy physical gold and silver bullion quickly and easily using the web-based trading platform.
The gold and silver bullion is 100% allocated, meaning the precious metals you purchase are in your name as your legal property.
The gold bullion is investment grade, good delivery gold bullion bars which are stored in a private top-tier Brinks vaulting facility in Zurich Switzerland.
Vaultoro is a more user friendly and reliable online crypto/gold exchange which offers a simple interface, making it easy for customers to buy and trade gold with various cryptocurrencies.
Digital precious metals.
Whether it be ‘DigiGold’, gold-backed crypto, crypto to gold exchanges, there is now a wide variety of options when it comes to investing in digital precious metals.
These online platforms now make it easier than ever for new and potentially younger investors to access the precious metals market whereby you can buy, store and trade gold and silver whenever, wherever.
Main Image by StockSnap from Pixabay.
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