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Spread Costs and Regulation Gaps Are Key Risks
Transaction spreads and limited regulation remain primary structural investment risks
Many investors underestimate the effective 6% entry gap created by the GST and transaction spreads. Gold prices must appreciate sufficiently before net gains appear. Additionally, digital gold is not regulated by RBI or SEBI and increasing reliance on private trustees and audit systems. Selecting established and audited providers becomes critical to mitigating counterparty and operational risks.