21 October, 2022 | 10:33 AM

How does Comtech Gold (CGO) work and what is it?

How does Comtech Gold (CGO) work and what is it?

Is it better to own digital gold than physical gold?The metal is tokenized by Comtech Gold, making it more liquid and secure.

Digital gold's rise to prominence has the potential to cause unprecedented disruption in the industry.Gold has historically served as a global currency to protect against inflation.In addition, it has been serving as a commodity investment venue, which is frequently favored over other asset classes like equities or foreign exchange, particularly in conventional markets.
However, owning physical gold comes with a few drawbacks, including the possibility of theft and the inconvenience of transport and storage.Although gold exchange-traded funds (ETFs) may appear to be an alternative option, investors must keep in mind that traders do not actually own the gold and pay the same taxes as gold bullion or bars, as well as an annual fee of approximately 0.4 percent to 1%.Bullion includes all exchangeable physical forms of other precious metals, like silver and platinum, whereas gold contains all metal forms, like coins and bars.
On the other hand, storing digital gold on a blockchain appears to be a viable option.This is where Comtech Gold (CGO) comes in, a cryptocurrency that combines the advantages of blockchain technology with those of gold.By introducing a cryptocurrency that is 100 percent backed by gold, CGO addresses the prevalent issues with gold trading.
CGO meets the requirements of both individuals and corporate investors.Retail investors no longer need to go to local markets to buy gold.Furthermore, it eliminates the need to physically store gold, which benefits institutional investors.

Introduction to Comtech Gold By issuing standardized digital gold that is 100% backed by physical gold, Comtech Gold has added another dimension to gold trading.The project, which is based on the cutting-edge blockchain XinFin XDC Network, is also Shariah-compliant and has been approved by a renowned group of Shariah scholars in the United Arab Emirates.
Gold's storage and transfer issues can now be resolved by converting digital gold into physical gold at any time.The precious metal's fractionalization makes gold investments more common.
Gold is physically owned by holders of CGO tokens in the same proportion.Despite the fact that each holder is entitled to a certain quantity of gold, it might not be the specific bars they submitted.Similar to a bank, this arrangement allows the person withdrawing money to request bills of a certain value, but not necessarily the same bills that they had deposited in cash.
Underlying physical gold The prices of each token on Comtech Gold are based on the current international gold rate.The gold bars, which can be identified by their bar numbers, serve as full security for the tokens.These are standard 1 kg bars with a purity of 999.9 percent.
Gold-backed token holders can exchange their tokens for actual 1 kg gold bars.An investor can request that their gold tokens be exchanged for physical 1 kg gold bars when they have gold tokens worth one kilogram (1000 CGO tokens).


One will be able to purchase tokens in smaller denominations at shops owned by well-known retailers at any time they choose as the Comtech Gold network expands.
Sharia compliance Comtech Gold establishes an ecosystem based on the identification and separation of the physical gold associated with each gold-backed token.Each transaction will conclude with the actual transfer of tokens from the seller to the buyer, as required by Shariah compliance.From creation to redemption, the token can be audited in its entirety.
Amanie Advisory Group, a company that specializes in shariah-compliant investments and Islamic finance solutions, issued the Shariah certification (Fatwa).After confirming that the Comtech Gold token's structure, mechanism, and relevant key legal documents met all required Shariah requirements, the ComTech Gold Shariah certification was issued with guidance from the advisory team.
The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) has set standards and rules that are in line with Islamic law.
Vault and storage Transguard, a globally recognized vault, houses the physical bars that support the gold tokens.The audit trail for the user's wallet account is complete.To view their balance and transfer tokens, users can use their wallets.Since each wallet is encrypted, only the owner can access it.
Due to safety and convenience concerns, gold storage has always been a pain, whether at home or in a bank.But with Comtech Gold, users can store gold in a tokenized form, move their investments around, and even sell them at any time.
Tokenization of actual gold Gold is a valuable metal, so investing it is unaffordable for many people.The digitization of gold results in fractional investments, allowing individuals to purchase as little as one gram, significantly broadening the investment horizon for investors.Comtech Gold makes it easy to buy at least 0.01 grams.