Is Digital Gold Safe? Where your gold actually sits
Would you hand a gold bar to a stranger and say, "Keep this for me"? Of course not. You'd want to know who they are, where they'll keep it, and how you'd get it…
Would you hand a gold bar to a stranger and say, "Keep this for me"?Of course not. You'd want to know who they are, where they'll keep it, and how you'd get it back.
A gold app deserves the same questions. So here they are, with our answers.
The short answer
Digital gold is as safe as three things: who holds the gold, who insures it, and what happens if the company has a problem.
The number on your screen is just the record. The gold is somewhere else. You should know where.
Where is the gold?
In a vault. At JustGold, it's at Amanat Vaults in Sharjah.
Amanat is the UAE's first Emirati-owned independent vault. Biometric entry, steel-lined walls, CCTV linked to Sharjah Police. They're not us. That matters, because your gold isn't sitting in our office.
Which country is your gold in?
Ask this one. Some gold apps in the UAE call themselves Shariah compliant, but keep your gold in another country.
You live here. Your gold should too. Ours is in Sharjah, a short drive from your home, not a flight away.
Is it insured?
Yes, through Lloyd's.
Insurance covers theft, loss and damage in the vault. It does not cover the gold price going down. Nothing does.
What happens if the app shuts down?
Most people never ask this. You should.
At JustGold, your gold is held by Amanat Vaults as custodian, separate from our company's assets. You own an exact amount of real gold, recorded in your account.
In plain words: it's your property, not ours.
What can actually go wrong?
Let's be honest about it.
- The price can fall. Sometimes for a long time. Digital gold doesn't change that.
- Your account can be hacked if you share your OTP. Never share it. Not even with someone who says they're from support.
- Some apps don't sell real gold. If you can't take it out as a real bar, ask what you actually own.
Six questions to ask any gold app
- Who stores the gold? Do they name them?
- Which country is it in?
- Who insures it?
- Is there real gold behind my balance?
- Can I take it out as a real bar? From how many grams?
- What happens to my gold if you close?
If an app answers all six on its website, without you chasing them, that's a good sign.
Our answers, in one place
Your gold is at Amanat Vaults in Sharjah, not in another country. It's insured through Lloyd's. You can take it out as a real bar from 1 gram.
You don't need to become a vault inspector. You just deserve clear answers.
FAQ
Is digital gold real gold?
It should be. On JustGold, every gram is real 24K gold in a vault.
What happens to my gold if JustGold shuts down?
Your gold is held by Amanat Vaults as custodian, separate from our company's assets. You own an exact amount of real gold, recorded in your account. It's your property, not ours.
Can I lose money even if my gold is insured?
Yes. Insurance protects the gold, not its price.
Is digital gold safer than keeping gold at home?
The risks are different. At home, the risk is theft or loss. With an app, it's who holds the gold and how well you protect your account.
Sources
About the author
Talha Mahmood is Head of Marketing and Partnerships at JustGold, the UAE's Shariah certified digital gold and silver savings app.
