What digital gold should mean
Every gram you buy should be backed by physical gold in a vault. You should be able to sell it at any time, and ideally take delivery of real bars. Some products only track the gold price without holding metal; those are not the same thing.
The checklist
- Is every gram backed by real metal? Look for daily checks that the metal held covers everything customers own.
- Who holds the gold? An independent custodian, separate from the app company, is safer than the app holding it itself.
- Is it insured? It should be insured for its full value against theft, loss and damage.
- Is the metal kept apart from the company's own money? If the company failed, customer metal should not be used to pay its debts.
- Can you take delivery? Being able to turn grams into bars is a good test that the gold is real.
- Licences. Check which UAE authority licenses the company, and that the licence covers what it does.
- Fees and spread. Clear, published fees, and no surprise charges when you sell.
The risks that remain
Even when everything above is in place, the gold price can fall, and you may get back less than you paid. Gold pays no interest. Read our Risk Disclosure for the full list.
How Lumos answers the checklist
Every gram is real 24K gold or 999 silver, held by an independent custodian in the UAE and insured for its full value. We check every day that the metal covers everything customers own, and you can sell any time or have bars delivered. Our licensing, Shariah certification and ISO 27001 are in progress, and we publish each one on our Licences page as it completes.
Questions
Is digital gold real gold?
It should be. A proper digital gold service backs every gram with physical gold in a vault. Ask the provider directly, and check whether you can take delivery of bars.
What happens to my gold if the app shuts down?
If the gold is held by an independent custodian and kept separate from the company's own assets, it remains yours and should be returned or sold for you. Check the provider's terms for exactly how this works.
Is digital gold halal?
Many scholars accept it when the gold is real, fully owned by the buyer and not lent out. Look for a Shariah review from a recognised adviser.
General information, not financial advice. Prices change all the time; Lumos prices shown are live.