Gold has always been the preferred investment option for Indians. The yellow metal has a strong emotional bond with people in India. That’s why people buy gold to celebrate any festival and even offer it to deities in the temple. For this reason, gold is sometimes referred to as ‘god’s currency’.
Different Forms of Gold
Traditionally gold was bought in physical form as jewelry, coins, biscuits, or rods. In the form of jewelry, gold is mainly purchased for self-use or gifting purposes. But when bought in other forms, it is primarily an investment to secure the future.
Of late, people have started moving to buy gold in digital form. This form of gold, called digital gold, is similar to physical gold, except that you don’t get the satisfaction of holding the yellow metal in your hand. Instead, you can buy digital gold from a company, which keeps it safely in a digital vault. This takes away the risk of getting your physical gold lost or stolen. Due to all these reasons, compared to last year, the purchase of digital gold in India has gone up by almost 70%.
Benefits of Investing in Digital Gold
Investing in digital gold has several advantages over investing in physical gold. Some of the major reasons for increased interest in buying digital gold are:
Assurance of Price and Purity
The price of digital gold is uniform across the country, which is not the case with physical gold. So, the investor is assured he is getting the best price available on that day. Also, the digital gold comes with a guarantee of 24K 99.9% pure gold, which can never be compromised.
Small Investments Possible
If you don’t have enough money at your disposal and still want to invest in gold, then digital gold is the best option. You can buy gold worth a small amount. One can invest even Rs. 100 and become a proud investor in digital gold.
When you want to sell the physical gold, the jeweller tells you the live price for that day and then makes the payment after deducting some amount in the name of ‘wastage’. This way selling of physical gold is never profitable. But in the case of digital gold, one can easily sell the digital gold to the trading company and get the payment after deduction of the transaction fee, which is a nominal amount.
Ease of Liquidating the Investment
You have two options when you want to liquidate your investment in digital gold. You may either sell the digital gold and get paid or ask for converting it into physical gold. By paying a small amount as a delivery fee, you may even get the physical gold in the form of coins, cars or rods delivered to your doorstep.
It’s Completely Legal
These days, the government has put restrictions on individuals holding physical gold beyond a specific limit. However, in the case of digital gold, a person can buy digital gold up to Rs. 2 lakhs in a day. There is no upper cap or limit on the total amount of investment.
Digital Gold â The Future of Investment
Looking at the above reasons, it can safely be said that digital gold is the future of investment. Looking at the benefits of digital gold, the younger generation prefers to invest in digital gold.
Digital gold has revolutionized the way gold is bought, sold, and used in India. No wonder digital gold is emerging as the future of gold investment in India. This change has been brought about by the following factors:
Seamless and transparent dealing: Buying gold physically involves visiting a ‘trustworthy’ jeweller. The first concern is the purity of gold that you are buying. Then comes negotiating with the jeweller over the price of gold and other charges. In case you are buying jewellery, you have to haggle over the making charges. The making charges are often a substantial part of the total investment and make the customer pay more, receiving a lesser amount of gold. And when you go to sell that jewellery, the making charges paid by you is not taken into account.
On the other hand, buying digital gold assures that you are getting 24K 99.9% pure gold. There is no difference in price, and you do not have to pay anything extra, over and above the cost of gold.
One can make smaller investments: The older generation still prefers to save money to buy physical gold for their children’s marriages or celebrate special occasions like Diwali, Akshaya Tritiya, or Pushya Nakshatra. However, the younger generation likes the idea of a small ticket size and makes smaller but regular investments in digital gold. One can buy digital gold for as little as Rs. 100, which was unheard of till a few years ago. But investing in digital gold allows you to build a substantial investment over a period of time.
Easy to liquidate: One of the reasons for the popularity of gold as an investment option is its ease of liquidity. While it’s easy to liquidate physical gold also, it involves visiting a jeweler, who deducts a significant amount as ‘wastage’. But in the case of digital gold, one can sell your gold reserves with a few clicks on your mobile or computer. And there is complete transparency over the price as well.
Safe and cost-effective: When you buy physical gold, one of the major hassles is storing it safely. There is always a risk of the gold getting lost or stolen. To avoid this, most people rent a locker and end up paying locker maintenance charges every year. But in the case of digital gold, you get access to a digital vault for a period of 5 years, at no extra cost. Hence it’s safe and less expensive.
Digital Gold and OroPocket
Planning to buy digital gold, then you must consider OroPocket offerings once. OroPocket offers unlimited convenience from the word âgoâ. One can easily create a free account on the OroPocket mobile app, complete the KYC formalities, and start investing in digital god, with an amount as low as Rs 1.
OroPocket believes in the complete transparency of all its dealings. The use of Blockchain technology allows investors to verify the integrity of their holdings. Not only that independent auditors daily verify the gold in the safety vaults located in Switzerland, UK, Singapore, and India.
With no storage fee and insurance charges, there is no cost of holding your investment. The only cost you pay is when you buy or sell digital gold through OroPocket. The company charges a flat fee of 0.25% on all transactions. This ensures a better return on your investments.
Buying digital gold is not just safe, but one gets the assurance of purity and paying a fair price. Also, when it comes to tracking the price movement, the entire process is very transparent. Selling digital gold is also very convenient. The investors get a choice between getting cash or exchange it for physical gold. Due to all these conveniences, the younger generation prefers to invest more in digital gold. That’s the reason why people are calling digital gold the future of investments.