- What is digital gold?
- How digital gold works?
- How can you trade in digital gold currency?
- What are the significant benefits you get when you buy digital gold?
- What are the drawbacks of digital gold?
- Who should make investments in digital gold?
- Is digital gold a good investment?
- Is digital gold safe?
- Where to buy digital gold?
- How digital gold works?
- Is digital gold profitable?
Nowadays, Gold is not used as a currency, but still, it can be utilized as money. In fact, it has been maintaining a store of value of more than 3000 years which is relatively longer than any other currency. In India, Gold is considered God’s money and is often offered to temples during some auspicious occasions. These are the reasons India is the biggest importer of Gold across the world today.
Even though India is in the midst of a pandemic, Indians have now found a novel way to make investments in this yellow metal. Yes, we are talking about digital gold. In the last few months, digital gold investment has been continuously increasing.
People are now hesitating to visit a physical gold store and dealers, so when they get an option to obtain gold online, it has become a perfect solution for many investors.
Before we know in detail what digital gold is, let’s see how we were investing in Gold over the last few years.
One of the most common ways of investing in Gold is to purchase Gold in the forms of the coin, bullion, and jewelry. In addition, there are Sovereign gold bonds, gold ETFs, and Gold mutual funds.
But because of this ongoing pandemic, another way of investing in Gold has risen and is gaining popularity. It is a digital gold purchase on which people nowadays are more interested.
What is digital gold?
Purchasing physical Gold has many downsides. There are problems like recognizing how legit it is and its purity, then there are other problems of safekeeping and storage. One of the other problems is not being able to visit the physical store to purchase Gold.
Digital Gold can be purchased online, and it is then deposited in insured vaults by the seller for the consumer. It also assists in overcoming all issues of purchasing Gold from stores. All you need is the internet and access to online banking. You can do digital gold buy and sell anytime and anywhere.
The Federal Reserve and other central banks could print more money only if they managed to get their hands on more gold.” ― Nathaniel Popper
How digital gold works?
You can make digital gold investments from any mobile e-wallets like PayTm, PhonePe, or Google Pay. Some brokers like HDFC Securities and Motilal Oswal also give you an option for doing digital gold buy and sell.
At present, three major companies offer digital gold in India:
- Augmont Gold Ltd
- MMTC PAMP India Pvt Ltd is a joint venture between the state-run MMTC Ltd and Swiss firm MKS PAMP.
- Digital Gold India PVT/Ltd with SafeGold Brand.
Applications and websites like Paytm or phone pe offer you a platform for doing this yellow metal trading. When you purchase digital gold from these trading companies, they buy an equal amount of the physical gold and then store them under your name in safe vaults.
How can you trade in digital gold currency?
At first, you have to make a visit to any of the digital gold platforms that provides you an opportunity to create digital gold investments like Groww, HDFC Securities, Gray, etc.
Enter an amount either in INR or in grams. Here you can make digital gold buy of a fixed worth, or you can purchase by weight with a live market rate.
Now select your method of payment. When you complete the KYC process, you will get several payment options to choose from, like account, card, and wallet.
Now store your digital gold in a safe locker. Your account is updated at once, and you can access it 24/7.
Does digital gold buy and sell anytime you want? You can select to sell your Gold by digital mode to the platform whenever you wish to. You have an option to take physical delivery of your Gold: In case you do not want to sell your Gold, then you can request for delivery of your Gold at your doorstep in the form of a digital gold coin or bullion.
What are the significant benefits you get when you buy digital gold?
- You can invest an amount which is as low as Re.1
- You can opt for getting physical delivery of your Gold right at your doorstep.
- You can get an option to have a digital gold loan.
- Digital Gold is always genuine and pure.
- Your every buy is stored securely and is 100% insured.
- You can exchange digital golds with coins and bullion.
What are the drawbacks of digital gold?
The drawbacks can better explain it we get by comparing digital gold vs. physical gold.
In simple words, digital gold overcomes the three main drawbacks in association with the buy and sell of Gold in the old method.
- Expenses: Old method of gold purchase mainly includes getting hold of a trusted jeweler after several months of saving. You also have to pay that jeweler making charges along with some other associated costs of gold purchase. Digital Gold is available for you to purchase in as low as RS.100 on Finsery markets. So, it is one of the affordable options for investment for anyone.
- Negligible security cost: Storage of physical gold that is bought traditionally includes huge charges because people often prefer to store it in bank lockers. Keeping Gold at home is risky because of theft. But when you purchase digital gold on Finsery markets, you will get access to the security vault for about five years. Moreover, you will not have to pay any hefty charges.
- Liquidity: Indeed, Gold is long one of the most preferred modes of investment due to the easy options available for liquidity that it provides to the investors. But there are constraints also. For example, if you are buying Gold from a jeweler, you can sell them at a much low price. But with digital gold, you can see them at the market digital gold price, making sure all of your losses are alleviated.
Who should make investments in digital gold?
Well! Any investor who has a strong affinity towards gold investment but cannot stand the high cost or even the storage cost can consider buying digital gold. They can make small investments, and there are no restrictions or any minimum buying value. In addition, investors will not have to worry about storing gold as they can keep it safely at the seller’s vaults.
Thus, we can say that digital gold is one of the most convenient ways for investing in gold. Based on the platform you are selecting, you can also receive your Gold at your doorstep in the form of gold coins or billions. If you are a gold lover, consider buying Digital Gold.
FAQs (Frequently Asked Questions)
Is digital gold a good investment?
Yes, it is one of the best modes of making investments. With so many platforms and accessible buying modes, why take the hassle of visiting a physical store to buy Gold. Moreover, you don’t have to worry about storing it safely by paying a hefty amount.
Is digital gold safe?
Since the whole market is easily predictable and is volatile at the present moment, therefore digital gold is one of the safe investments and best way to protect yourself from this unstable market. The digital gold that you purchase online is under allocation as physical gold under your ownership.
Where to buy digital gold?
You can invest in digital gold from various mobile e-wallets like Paytm, google pay, and phone pe. Some brokers like HDFC securities and Motilal Oswal also give you an option for making a digital gold investment.
How digital gold works?
Once you invest in digital gold, the companies will purchase an equal amount of physical gold and then store it under your name in safe vaults. This way, your investment in digital coin works.
Is digital gold profitable?
Yes, digital old is highly profitable because of the liquidity it offers. You can buy and store it and sell it whenever you want to the platform. Moreover, there are reduction in prices while selling like traditional gold. You can sell it in existing market price.