Digital Gold Investment – Check out the Process, Perks, Cons & moreLast Updated Date: Nov 16, 2022
Know everything about Digital Gold & its Investment here.
When everything is available on the internet and everything is going digital, from payments to investments, from debit to credit, how can be gold behind in the race?
Gold is one of the best options for investment. However, purchasing physical gold has some demerits. It may have purity issues, extra making charges, storage, and security concerns, buying and selling problems, etc.
To overcome all these problems an individual can opt for digital gold instead. Also, in the time of lockdown where all the shops are close, one needs some alternative for buying or investing in gold.
This is where digital gold can be useful for customers. Here is all about gold investment and reasons for its increasing popularity.
What is Digital Gold?
Digital Gold is a smart and modern way of investing in gold through online platforms. It is a safe and convenient source of investment in 24-carat gold which is stored in a secure wallet or vault.
Also, it eases the transaction and can be done anywhere and anytime. Transactions can be performed through mobile as well.
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Why Digital Gold Investment is beneficial?
Investing in digital gold is a good option. As mentioned earlier, it overcomes the difficulties of physical gold, besides that, there are other benefits too, which are as follows:
Flexible investment rates
The online platforms do not have a restriction regarding the minimum or maximum amount to be invested. An individual can invest according to his requirement and capability.
The online platforms for digital gold investment guarantee 24-carat gold starting with 99.5 percent purity and authentication.
Pay only for gold
In the case of physical gold, one needs to pay for other mixed metals as well, but digital gold investment ensures payment only and only for 24-carat gold.
Bear zero extra charges
Physical gold jewelry includes making charges and sometimes, hidden charges too.
The digital gold investment gives the purchaser this advantage of zero making charges and is a transparent system where no charges are hidden. Also, this is exclusive of GST charges.
Gold prices are linked to the market’s current situations and the online platforms display real-time prices of gold. The prices are displayed per gram of 24-carat gold.
Firstly, all the parties that are involved in the transaction are verified and registered. They are closely regulated by the authorities.
Secondly, for physical gold, you need a bank account and a locker to keep your precious things safe which involves registration cost, opening charges, annual charges, etc.
However, digital gold is a hassle-free process where there are no such hefty costs. It is safe and secure despite the low costs.
Physical gold requires you to visit a jeweler for purchasing and selling of gold and requires a lot of time as well but with digital gold these transactions and trading become easy.
This facility remains available 24/7 and hence, can be availed from anywhere and anytime as per your comfort.
Easy to track
Every purchase, sell or transaction is recorded and is available in your transaction history so that you can check the activities and have a track of all transactions.
Once you sell the digital gold, the cash you earn in exchange is credited to your bank account in a few hours.
Also, instead of selling digital gold, you can exchange or redeem it for gold bars, biscuits, or coins. It can also be turned into jewelry as per your need by the service provider.
All these gold products are generally securely delivered to your doorstep.
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How to Buy Digital Gold?
One can buy digital gold through various online platforms like Paytm, PhonePe, Google Pay, Amazon Pay, MobiKwik, etc.
MMTC-PAMP, SafeGold, and Augmont Gold make these options available for customers. Here, MMTC-PAMP is a joint venture between a state and Switzerland based company.
SafeGold is a platform that has tied up with various mobile platforms. The collaborations are to ensure better usage and convenience of customers.
When a customer wants to purchase digital gold, he first needs to choose a platform. It is through which he will be doing further transactions.
Then the customer needs to register himself on that platform. Usually, KYC or Know Your Customer registration is a must to fill. This form includes information like identity proof, bank details, address proof, etc.
Once a customer undergoes the registration process, he is ready to start the transactions. Buying gold on these apps or websites is easy.
Typically, the vendor’s list is present and current rates are through. Here, the customer can opt from which vendor to purchase the digital gold.
Some sites and apps require customer’s PAN card details too if the transaction amount goes beyond Rs. 2 lacs.
We advise to check and read all the rules and conditions of the platform before proceeding with any activity.
Find more details about Gold Investment here
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Cons of Investing in Digital Gold
Till now, the article focused on the benefits of investing in digital gold, you must be wondering are there any disadvantages of investing?
The first con being, if one-day digital market crashes or everyone shifts to offline or traditional markets then the users will not be able to access their virtual gold.
The value of gold may become null. However, this situation is just imaginary and it has almost no chances of happening so.
Also, another thing to mention, that in the case of digital gold there is no regulator for the product. As such there are trustees to perform the work but there is a need for a regulator too who can work in the interest of customers.
Next, digital gold investing platforms provide a particular time, varies from a month to five years, during which the investor has to either take delivery of the gold or sell it. If not done so, then extra charges apply to the investor.
Also, in the case of asking for the delivery of gold, the investor needs to pay the delivery charges separately. Some platforms may even ask for making changes.
Other online options related to gold ask for GST too but, in those options, the tax is credited back to the user’s account in some or the other form but in this case, GST is charged.
Thus, reading the conditions and rules of any app or website becomes mandatory. Compare all the platforms and then go for the one, which best suits your needs.
Conclusion: Digital Gold Investment
Digital gold is a simple, modern, and secure option to invest in, especially in this lockdown period.
However, the app or website for investment should be chosen wisely and all its rules, regulations, and conditions should be well-read and understood by the user.
Also, ensure that the platform matches your financial needs and goals. It is estimated that the rush for digital gold may ease after the pandemic is over but many experts think that people may permanently shift to this kind of gold investment as well.
It is so because nowadays, people prefer digital ways and that too from the comfort of their homes. Overall, digital gold is an advantageous option to go for which is efficient, inexpensive, and a time saver.
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