How Good is it to Invest in Digital Gold?

is it good to invest in digital gold

Indians adore Gold. We view it not just as a sign of riches and success, but also as an investment that protects against inflationary pressures. When Gold is incorporated in an investment portfolio, it helps to offset the impact of other high-risk investment instruments such as investment funds and equities. Despite being a popular investment option, precious metals have a few drawbacks. Buying actual Gold (in the form of bars or coins) has limits in terms of storage, safety, and upkeep. Buyers of Gold jewelry must pay manufacturing and disposal expenses in addition to storage costs. Then there are Gold Sovereign Bonds that are also offered at banking windows at regular intervals but to get started with Gold ETFs, but you’ll need a preexisting knowledge of the market as well as a trading and Demat account. However, there is a Gold investing alternative that bypasses all of these obstacles and enables investors to purchase and sell Gold immediately, wherever and whenever they choose. Digital Gold is that choice. You might have a question that goes “is it good to invest in digital gold?”, well let’s check it out.

Methods of Investing in Gold Throughout History

Gold is one of the most widely traded commodities. It has been a component of human culture’s development from antiquity to the present day. There has never been an age or society in which Gold has not been regarded as a precious asset. Gold was the basis of the modern global economy, functioning as both a form of money and a store of wealth. Historically, the most common method to invest in Gold has been to purchase actual Gold. Physical Gold may be purchased in the following forms:

What Exactly is Digital Gold?

Purchasing real Gold has a number of disadvantages. There are difficulties with determining its authenticity and purity, as well as issues with safeguarding and storage. Another problem is that we are in the middle of a pandemic. It is not advisable to visit Gold merchants or jewelry shops.

Digital Gold, on the other hand, may be purchased online and kept in insured vaults on behalf of the client by the seller. It also assists us in overcoming all of the aforementioned difficulties associated with actual Gold purchasing. All you need is Internet/mobile banking to invest in Gold online whenever and wherever you choose.

How Does Digital Gold Work?

In India, there are now many businesses that provide digital Gold. Several mobile e-wallets allow you to invest in digital Gold. Digital Gold investment is also available via brokers.

Apps and websites such as Paytm, G-Pay, and others simply serve as a platform for metal trading businesses such as SafeGold and MMTC PAMP. When you invest in digital Gold, these trading companies buy an equal quantity of real Gold and keep it in safe vaults in your name.

Digital gold investment platforms: tapping into Indian investors' potential  | Post by Louise Street | Gold Focus blog | World Gold Council

What Are the Benefits of Investing in Digital Gold?

You cannot invest in digital Gold directly since an authorized third party is required. When you make a digital Gold order, the entity you purchase it with buys the said quantity of Gold and stores it in a vault on your behalf. Similarly, if you choose to sell your digital Gold holdings, the entity will sell the Gold at the current market price and deposit the proceeds into your account. The whole procedure is digital and secure. At no time are the investors given actual Gold.

Your Investment is Completely Safe

The Gold you purchase online is allocated as physical Gold in your direct possession and kept in fully insured, accredited vaults on the extremely secure facilities of MMTC PAMP. This vault is further secured by the IDBI Trusteeship, which is intended to defend the interests of digital Gold investors.

You May Sell Digital Gold at Any Moment

In the past ten years, Gold prices have increased by almost 300 percent. By investing in digital Gold, investors may easily resell Gold holdings at current market value without paying any additional costs. Through Instant Bank Transfer, funds are simply sent to the registered bank account.

Due to the metal’s rarity, Gold has evolved into an effective hedge against volatile markets throughout time. In recent months, Gold prices have gradually increased. Following the March collapse triggered by the COVID-19 shutdown, they managed to break over the Rs 50,000/10 gm threshold in July 2020, and are currently on the rise once again.

Because the markets are now uncertain and turbulent, digital Gold is a safe investment and a smart method to protect yourself from an unstable market.

You May Begin Investing With as Little as Rs 1

You may invest small sums of money in a high-return asset like Gold over time, enabling you to build a solid investment portfolio and secure your financial future. The wholesale market rate determines the price of digital Gold, not local variables such as location or even a worldwide epidemic, making it cheaper for purchasers.

If you wish to invest online, you may do so via OroPocket.

Read to know more: How to invest in digital Gold?

Protect Yourself Against Volatile Markets

Gold investments have long been regarded as a robust and reliable choice, with a favorable position in portfolios spanning generations. While the manner in which invested Gold is kept is changing, Gold investment as a whole is unlikely to go out of vogue, particularly for those seeking to incorporate it in their long-term wealth-building portfolio.

With the stock market volatility and digitalization making the transaction easy, secure, and safe, the epidemic has shifted the emphasis back to Gold investing.

As the average age of investors changes, so will their preferred method of investing. Consider investing in digital Gold to create long-term wealth for digital natives looking for a trustworthy instrument in the comfort of their familiar digital environment.

Get 24K Pure Gold Delivered to Your Home

At any moment, you may exchange your digital Gold for real pieces. In this time of epidemic, when it is impossible to leave the house, all one has to do is choose from their wide selection of finest purity Gold bars and coins in a variety of weights, which will be securely delivered to your home.

Final Word

When you hear the term “digital Gold,” you may think of Gold mutual funds and Gold ETFs (exchange-traded funds). Gold mutual funds and gold exchange-traded funds (ETFs) are both good alternatives to actual Gold. They are, however, not as effective as digital Gold. This is due to the fact that you must pay costs such as the expense ratio and other applicable charges to the fund house. However, there are no such fees in the case of digital Gold. As a result, digital Gold is the most effective method to invest in Gold. What distinguishes digital Gold is the ability to swap your holdings for real Gold, which is delivered to your door. This is not an option with Gold ETFs or mutual funds.

Investing in real Gold is never a smart idea. This is why you should invest in digital Gold, where you may receive the true worth of Gold for money.


Additional Read:

Share your vote!


Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid

Leave a Reply