What is Digital Gold and how to invest in it


What is Digital Gold and how to invest in it

Making an investment in Gold is always an evergreen investment strategy. But when it comes about buying gold, everyone needs to check their budget. Also, making an investment in physical gold is not as soothing for everyone as it sounds. Physical Gold generally includes Coins, Bullions and Jewellery.

What is Digital Gold?

To make everyone’s gold investment easier and convenient, gold can be purchased online and this is known as Digital Gold. After buying, digital gold is stored safely on your behalf in secured vaults by the seller.
Companies which are offering digital gold in India:
1. MMTC – PAMP India Private Limited
2. Augmont Gold
3. Digital Gold India Private Limited

How to Invest or Trade in Digital Gold?

Various e-platforms including mobile wallets and brokers such as Paytm Money, Google Pay, Groww, HDFC Securities, Motilal Oswal, Phone Pe etc. provides an option to invest in Digital Gold. Whenever you buy digital gold, these platforms buy equal amount of physical gold and store it in secured vault on your name.

Follow the below steps to invest or trade in Digital Gold:

1. Enter the gold amount you wish to buy (Either enter INR or grams).
2. Select a payment option after completing KYC.
3. Store your gold in secured vault. Also, you can access it anytime 24*7.
4. You can sell your digital gold anytime.
5. If you don’t want to sell, you can convert your digital gold into physical gold and take delivery at your home on some nominal delivery charges.

Advantages of Investing in Digital Gold:

Open to everyone: Everyone can invest in Digital gold.
Lowest investment amount: You can invest in Digital Gold with small amount as low as ₹1, which may vary for different investment platforms.
Finest Quality: Opportunity to invest in high quality 24 carat gold.
Safe and Secure: Your purchase is totally safe.
Online loans: One can avail online loans on behalf of their digital gold as digital gold is an asset to their owners.
Liquidity: Digital gold owners can exchange their Digital Gold into Physical Gold anytime. Also, they can receive the cash by selling the Digital Gold anytime.
Transaction Records: Each and every transaction record of Digital Gold is available on your investment platform which you can check anytime.

Drawbacks of Investing in Digital Gold:

However, there are also some drawbacks which you may face while investing in Digital Gold. Below is a list of those Drawbacks:
• There is no government regulatory body for Digital Gold investments like RBI or SEBI. But there is a trustee who regulates the quality of gold.
• An investor can invest or trade for up to 2 lakhs only (Limit amount may vary for different platform).
• Some companies offer vault for limited period of time. After that, you either have to sell Digital Gold or to convert them into Physical Gold.
• There are making and delivery charges to receive Physical gold delivery. These charges may vary depending upon the company, design and quantity of the Gold.
• 3% GST is charged, whenever you convert your Digital Gold into Physical Gold. For example, if you buy digital gold of ₹2000, gold of ₹1940 will be given to you as ₹60 has been deducted as GST @3%.

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