Although buying physical gold has its own satisfaction, there are some risks that need to be considered. The first risk arises from the need to identify the legitimacy and purity of gold. Then there's also the storage issue. Along with the times, these risks have given birth to a new gold trading concept which we now call digital gold.
Digital gold allows investors to buy their gold online and does not depend on direct physical transactions, making it easier, safer and more practical. Physical gold, which is represented by digital gold, is stored in a vault that is insured by the seller on behalf of the customer. This is what helps investors overcome problems in conventional gold transactions.
Therefore, the Indonesian Commodity and Derivatives Exchange (BKDI) or ICDX as a futures exchange, as well as the Indonesia Clearing House (ICH) as a futures clearing institution, are here to support the development and need for more up-to-date gold trading activities – without compromising security and convenience. market participants. ICDX and ICH have been appointed as organizers of the Digital Gold Physical Market on September 9, 2021.
In general, digital gold trading facilitated by ICDX is divided into two, namely digital gold trading with a matching process that occurs on the exchange, and digital gold trading with a matching process that occurs at Digital Gold Physical Traders.
Figure 1. Illustration of Matching Digital Gold Trading on Futures Exchange
Based on the flow listed in the Digital Gold Trading Mechanism Working Paper (BAPPEBTI), there are several notes related to the flow on the futures exchange:
Figure 2. Illustration of Matching Digital Gold Trading in Digital Gold Physical Traders
Based on the flow listed in the Digital Gold Trading Mechanism Working Paper (BAPPEBTI), there are several notes related to the flow at the Digital Gold Trader:
By: Muhammad Dzaki Adani
Get more information about digital gold and the role of clearing houses at The Source 22: ICDX 1st Quarter Update