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A Sydney-based cryptocurrency investing platform is making it simple for investors to gain exposure to precious metals.
Dacxi may be best known for its crypto investing platform, but that’s not all it offers.
Chief executive Ian Lowe is emphasising the company’s precious metal bundles – an easy way to get exposure in the world’s “precious metal trifecta” in one simple purchase.
By simply buying one token, investors gain exposure to gold, silver and platinum in one purchase, through Dacxi’s partnership with bullion specialist ABC Bullion.
“The key being, just like the cryptocurrency, the ownership of the precious metal is recorded in a token,” Lowe says.
“And that token is redeemable through the platform at any time at market prices, but it’s also redeemable for the physical metal.”
“So when a customer buys a precious metals bundle from us — or they just just buy a constituent metal, say gold or silver – we actually go out and purchase the corresponding metal from our bullion partner.”
Dacxi then stores the precious metal within ABC Bullion’s vaults, Lowe says.
Everything is auditable and insured. Even in the extremely unlikely event something were to happen to Daxci, the bullion is held safely and separately.
“So it’s really interesting – a much simpler way for the everyday investor to get access to precious metals, and it’s all facilitated through blockchain technology,” Lowe says.
The portfolio is made up of 60 per cent gold, 15 per cent silver, five per cent platinum and 20 per cent Dacxi Coins, with a minimum purchase of just $200.
Lowe acknowledges that on a one-year basis, the value of precious metals bundle is down 15 per cent. But he notes that over the past three years, it’s up 31 per cent.
“Now, people might look at that and say, 31 per cent is a modest return compared to the crypto bundle,” Lowe says.
But gold and silver are a very different type of investment compared to crypto — less volatile, and far more well established.
“And so investors would typically invest in precious metals with 100 per cent confidence that over the medium to long term, they’ll do well,” Lowe says.
He also noted that precious metals serve as a hedge against inflation – a major topic for global markets this year as annualised CPI growth in developed economies climbed to 30-year highs.
For more information the its precious metals token, visit Dacxi’s website.