Apart from enabling transparency and trust in the gold industry, another important objective that Novem Gold had in mind while creating its gold-backed NNN token is secure storage. There are many challenges to buying gold. When you finally have your gold in hand, the next problem that you have to deal with is storage.
Liechtenstein is one of the countries that offer the best regulatory framework. Novem Gold NNN gold tokens will be regulated as commodity-backed tokens under Liechtenstein law, bringing a higher scrutiny and therefore more safety for everyone involved.
In this article, we will look at the reasons why we settled for Liechtenstein for our gold storage plus some tips on how to tackle the challenges that come with storing physical gold.
Gold storage
Unlike investors who own stocks, physical gold investors need to think about storage since gold is a tangible asset that takes up space. If you are considering home storage, here are a couple of things you have to keep in mind.
Types of storage
Apart from understanding local laws that govern gold storage, you also need to learn about the different types of storage. When placing gold in secure storage, there are two types of storage spaces. The first one is segregated storage where the storage firm keeps your gold in a separated storage box from other client’s gold. In this case, there is an exact physical allotment for every precious metal you buy.
The next type of storage is allocated storage. Here, your gold is combined with the gold holdings of other clients and there is no physical partition for your gold holding. This is a decent storage alternative if you are not looking for immediate physical delivery of your precious metals.
Storage insurance
If you decide to store your gold at home in a vault, you need to provide insurance to your physical gold in case of a natural disaster. Fire, floods, earthquakes, and tornados present a real risk to your home-stored gold and a smart move is to get insurance. Keep in mind that your homeowner’s insurance may not cover precious metals at full value. Most insurance policies come with value limit caps that can be quite low. Plus, even if you store your gold is a safety deposit box, the bank will not cover you since the contents of safety deposit boxes are not insured.
Novem Gold’s gold storage
At Novem Gold, we give you peace of mind, with Trisuna, a gold-storage and handling leader. This gold storage handler boasts of secure storage with attractive options for the long term, short term, and in-transit storage. Trisuna stores the gold in Liechtenstein where it cannot be seized even in wartime.
Growing financial hub
Apart from its high level of security, Liechtenstein is also growing as one of the most important regions for FinTech ventures. According to a survey conducted by CV VC (a crypto investment company based in Switzerland and one of Novem Gold’s advisors), the number of blockchain-related firms in Switzerland and Liechtenstein has continued to increase even in the middle of a prolonged bear market.
As per the report, the number of cryptocurrencies and blockchain-related firms has been on the rise with a 20 percent increase over the past year. The report mentioned that the region’s blockchain industry is defying the recent fall in cryptocurrency prices with the number of crypto-related companies going from 629 to 750 as of December 2018.
Friendly regulatory environment
Apart from an increase in the number of crypto-related companies in the region, Liechtenstein’s government is also known for being an active supporter of nascent industries like blockchain technology.
On March 29th last year, Liechtenstein’s government introduces a blockchain specific regulation. The law was passed with the aim of allowing blockchain-based businesses to be integrated in a manner that advances legal and regulatory clarity for customers as well as businesses.
According to the country’s prime minister, “The planned regulations will make [Liechtenstein] one of the first nations worldwide to regulate [blockchain] this broadly, laying the groundwork for extensive economic applications.”
Final remarks
As you can see, Liechtenstein is by far one of the best locations for gold storage since it has the security and a regulatory framework to support Novem’s gold storage needs. Although safety deposit boxes have been a go-to solution for gold storage in the past, the fact that they don’t provide any insurance plus they offer limited access to your gold is a deal-breaker for most investors. At Novem Gold, we go beyond secure storage to give you easy access to your gold with our NNN token.
Novem Gold’s entire approach is based on safety and transparency. Through the use of the NEO’s Blockchain, Novem Gold is providing institutional, as well as retail investors, a transparent crypto project that can handle secure storage and transfer of physical gold.Click here to learn more about Novem Gold and how you can invest in gold in a safe and secure way.
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