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RE: Buying Gold on the Blockchain
This is a great post mate and you've knocked an item off my own TODO list - Thanks!
Sounds like there is an arbitrage opportunity here for the patient trader and if there is proper auditing in place for these counter-parties then this looks as safe a place for a gold bug like me to park wealth in crypto as anywhere else.
Thanks mate.
So let me see if I got this right..... If I register with the company and provide all relevant ID, I can buy DGX at current spot price from them 1:1 with a gram of gold and then go get my gold from them in Singapore??
So if I do all that then go to an exchange and buy them for under spot price I can still go exchange them for 1:1 gram of gold??
I can see a "big" investor sweeping up a lot of cheap gold at some point.
You only need to register if you want to claim the physical in Singapore the way I read it. I don't see why you couldn't just buy DGX on an exchange if it's under spot and then store it on your ETH address with no KYC needed.
If you don't hold it you don't own it!!
Makes an interesting coin if, like you said, a visible audit trail is provided. I like the idea of DGD also. Pays out quarterly from the 0.13% fees charged per every transaction to share holders.
Could this be a very inexpensive way to have a company store/vault your gold for you. Those 0.13% fees would clbe cheaper than any storage fees charged tlby other gold storage companies (GOLDMONEY)
There are storage fees charged to DGX holders. 0.6% pa that is charged daily. It happens automatically as part of the DGX contract. I don't know if this is considred cheap or expensive though.
Yes, but the price difference happens when the order books get very thin. You wouldnt be able to buy much at the lower price. At the moment the volume is decent so the market forces are doing a good job at keeping parity.