Investing in gold no longer requires the hassle of storing bars under your pillow or renting a bank safe deposit box. The advent of digital gold offers anyone the convenience of starting to save gold with only a small amount of capital through a mobile app.
However, behind its convenience, digital gold investment carries risks that should not be underestimated. To ensure your profit-making intentions do not backfire, make sure you thoroughly check the following five crucial points before depositing any money.
1. Legality and Regulatory Oversight
This is an absolute requirement. In Indonesia, digital gold trading is strictly regulated by Bappebti (Commodity Futures Trading Regulatory Agency) under the Ministry of Trade. Don't be easily tempted by the lure of high profits or influencers promoting certain apps. Check the list of officially registered digital gold trading companies on the official Bappebti website. Without this license, your funds are at risk of being lost without legal protection.
2. Certainty of Physical Assets as Underlying Assets
Even though it is called “digital,” the gold balance you purchase must be backed by real physical gold. This means that every gram you purchase on the app must have a physical counterpart in a secure storage facility. Make sure that the platform works with a credible gold storage facility (depository).
3. Price and Spread Transparency
One way digital gold platforms make a profit is through spreads (the difference between the buying and selling prices). A healthy platform will display prices in real time according to global gold price movements. Compare the selling and buying prices between apps.
4. Liquidity and Ease of Withdrawal
Gold is known as a hedge asset because of its liquid nature (easy to cash out). A good digital gold investment should provide flexibility for users to instantly sell their gold back for cash and convert digital gold into physical gold (Antam/UBS) if needed.
5. Reputation and Digital System Security
Since transactions are conducted entirely online, cybersecurity is non-negotiable. You certainly don't want your account to be hacked or the app to suddenly become inaccessible when prices are surging. Choose a platform with a proven reputation and dual security features such as Two-Factor Authentication (2FA), biometrics, and strong data encryption.
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