What is Comtech Gold (CGO) and how does it work?

The take-off of digital gold has the potential to disrupt the industry to an unprecedented degree. Historically, gold has been used as a global currency as a hedge against inflation. It has also been serving as an investment venue (commodities), often preferred over other asset classes like equities or foreign exchange, particularly in conventional markets. 

However, there are certain disadvantages to owning physical gold, such as inconvenience in transport and storage, as well as the risk of theft. Gold exchange-traded funds (ETFs) might come across as an alternative option, but it cannot be forgotten that the traders don’t actually own the gold while paying the same taxes as gold bullion, or gold bars, and also investors have to pay an annual fee of around 0.4% to 1%. Gold contains all forms of metal, like coins and bars, whereas bullion includes all the exchangeable physical forms of other precious metals, like silver and platinum.

In contrast, digitized gold stored on blockchain comes across as a robust option. This is what Comtech Gold (CGO) comes in, combining the benefits of gold with the advantages of blockchain. CGO solves the prevailing problems in gold trading by rolling out a 100% gold-backed cryptocurrency.

CGO caters to the needs of individuals as well as corporate investors. It eliminates the need for retail investors to visit local markets to buy gold. Moreover, it makes things better for institutional investors by setting aside any need to store gold in physical form. 

Introduction to Comtech Gold

Comtech Gold has added another dimension to gold trading by issuing standardized digital gold backed by 100% physical gold. Built on XinFin XDC Network, an advanced blockchain, the project is also Shariah-compliant and certified by one of the renowned Shariah scholars group in the United Arab Emirates.

Digital gold can be transformed into physical gold anytime, resolving the storage and transfer-related issues associated with gold. The fractionalization of the precious metal makes investment in gold more common. 

Holders of CGO tokens own gold physically in the same proportion. Though each holder is entitled to a certain amount of gold, it might not be the specific bars they had submitted. The arrangement works quite like a bank where the bank hands over bills of a certain value as requested by the person withdrawing, but not necessarily the same bills that they had deposited in cash.

Underlying physical gold

Each token on Comtech Gold represents…