Gold has been known for a long time, both as jewelry and as an investment asset and a hedge against economic and political conditions. The use of gold as jewelry among the public has increased the popularity of gold, outperforming other metals such as silver and platinum.

In other side, the movement of gold prices is also a factor driving its popularity. For people who have been storing gold for many years, at least since the 1990s until now, the increase in the price of gold is very pronounced.

Based on data, the movement of world gold prices in the last 10 years (2010-2020) recorded an increase of 32%. For owners of gold jewelry or other forms of gold such as LM (Precious Metal) gold, of course, they have already benefited from the significant price increases during this period.

Gold Asset Market Sentiment

The movement of gold prices in recent years has become quite interesting, it cannot be separated from world issues, such as:

1. Economic stimulus launched by a number of major countries in the world
2. The ongoing COVID-19 pandemic at the time of writing
3. Tensions in the Middle East and aggressions in Europe
4. The issue of nuclear weapons in a number of countries.

These things seem to be the main catalyst for the movement of gold prices, as these issues are shaking globally and cause concern. It is this concern that has finally made the ordinary people, as well as accomplished investors, switch to gold assets because their value is not reduced and is not consumed by inflation.

Meanwhile, in 2022, a number of issues will become quite interesting to observe and can affect the timing of buying gold. Some of these issues include the gradual increase in US interest rates throughout 2022. Until March 2022, the United States central bank The Fed has raised interest rates by 25 basis points, with the conflict between Russia and Ukraine expected to be resolved soon.

While these issues and catalysts look very interesting, sometimes the process of buying gold can be a bit tricky, especially because the price can be expensive. The smaller the gold fraction, the more expensive gold printing costs will be. Purchases can only be made in accordance with the available fractions. However, with the existence of digital gold now, these difficulties have been more or less accommodated.

Digital Gold Era

The existence of digital gold seems to be a new pulse point in the use of digital platforms for investment in assets that previously tended to be difficult to do. The use of this digital platform allows investors to own a share in an asset, independent of the available physical fractions. The share of assets owned will adjust to the capital owned. The amount can be accumulated which in the end, when it reaches a certain amount, can be taken physically (printed). Physical gold storage is also more reliable and safe as long as you have gold ownership in digital form.

Through the digital gold trading platform, customers will have the convenience of owning gold, especially with small capital. Some traders even set a minimum of IDR 10,000. In addition, the digital gold platform also makes it easier to save gold. Customers can get more competitive gold prices without having to be burdened with gold printing costs at the time of purchase, and are facilitated by the convenience of buying and selling gold directly.

In terms of security, digital gold transactions in Indonesia are now no longer in doubt, because digital gold trading has been regulated to be included in the exchange ecosystem and clearing institutions. Every transaction that occurs will be listed on the stock exchange and cleared through an institution appointed by the regulator, which in this case is the Commodity Futures Trading Supervisory Agency (BAPPEBTI).

So....!?? What are you waiting for!? You can start invest in gold with small funds! Digital gold can be the best solution for investing in precious metals.

By: Nikolas Prasetia

Get more information about gold and other commodities at The Source 22: ICDX 1st Quarter Update