Since times immemorial, nothing has fascinated Indians more than gold. Indians love to wear gold jewelry to enhance their looks. But that’s not the only reason why Indians buy gold. Today gold is no longer used as a currency but it can still be used as money. In fact, gold has been a store of value for over 3000 years. This is longer than any currency anywhere. Therefore, it is no surprise that many people buy gold for investment purposes. Gold is believed to be a ‘safe’ investment and acts as a ‘hedge’ against inflation. This belief is not without a solid reason.
The Historical Movement of the Gold Prices
If one were to see the gold prices historically, one would see that barring odd cases, the prices of gold have always moved northwards. In the year 1971, the price of 10 grams of 24Karat gold was Rs. 193, which in the last 50 years has gone up to about Rs. 49,000. That’s an increase of a whopping 25,000%.
Why Should You Invest in Gold?
If one investigates the gold prices more closely, one would find that between 1971 and 1981, the gold prices shot up by 833%. The same rise is 514% between 2001 and 2011. There are not too many assets that have given that kind of return. Hence, when it comes to investing in an asset that is safe and gives good returns, gold is a preferred choice of many investors. So, if you are looking at a portfolio that’s safe and gives you good returns, simultaneously, gold is definitely an asset worth looking into. According to financial experts, as a general rule of thumb, investment in gold should account for about 10-15% of one’s total investment.
Listed below are some reasons why one should invest in gold:
1. Buying gold is very easy and in case, you need to sell gold, it’s easy to sell it. Thus, it offers liquidity.
2. Over a long period of time, the price of gold has always gone up and given good returns to investors.
3. The gold price is largely unaffected by not just political uncertainties but geopolitical uncertainties. In such times, while the prices of paper investments go down, the value of gold in the long term has always gone up.
Ways of Investing in Gold
Traditionally people have been buying gold in the form of jewelry or in the form of coins, biscuits, bars, or bullions. However, buying gold jewelry is not considered an investment. Hence, traditionally, the main ways of investing in gold were coins, biscuits, bars, or bullions. With the passage of time, people started investing in Sovereign gold bonds, Gold mutual funds, and Gold ETFs. However, with the advent of technology, another form of investing in gold has gained popularity, and that is investing in digital gold.
How Pandemic Has Impacted the Popularity of Digital Gold?
Apart from the technological advances, the ongoing pandemic has also helped the growth of digital gold. Since people are hesitant to visit jewelry stores and gold dealers, being able to procure gold online has come as a perfect solution for many investors. In such a scenario, digital gold has emerged as not only a profitable but a ‘safe’ way of investing in gold.
What is Digital Gold?
Just like physical gold, in digital gold also, you invest in gold. The only difference being, you don’t get actual delivery of gold. Here, once a person makes a payment to invest in gold, the trading company buys gold of that amount in the name of the investor. Before buying the company verifies the purity of the gold and then stores it safely in their digital vaults. This way a person is able to invest in gold without having to bear the risk of keeping it safe. This digital gold is traded on commodity exchanges, and investors can track its movement. When there is a good opportunity or requirement of cash, the investor can sell the gold to the trading company and get cash.
If required, the investor may ask the company for physical gold. For a small fee, the physical gold is delivered to the doorstep. This makes the entire process of buying and digital gold very safe, secure, and convenient.
How Does Digital Gold Work?
First, you need to decide how much investment you want to make. You may decide the amount in INR or the amount of gold you want to buy. Then you need to visit a company trading in gold, verify your KYC, choose made of payment, and you are ready to invest in gold.
As soon as the investment is made, the digital gold account is created. The company buys gold in your name and stores it safely in a digital vault. There are no storage charges. The person can track the performance of the holdings online and buy or sell, as per wish. Or, if required, instead of selling the gold, he may convert digital gold into physical gold. The investor can pay a nominal delivery charge and get doorstep delivery of the gold in the form of coins or bullion. As soon as the investor withdraws the investment, the gold is removed from the vault.
This way, digital gold offers the customers an easy way to invest in gold which gives assurance of purity and security of returns.
Buying Digital Gold with OroPocket
Among the various apps and platforms that deal in buying and selling digital gold, OroPocket stands out like a ‘face-in-the-crowd’. Buying digital gold with OroPocket is both convenient and profitable.
Benefits of Buying Gold with OroPocket
So, if you are looking to invest your hard-earned money in digital gold, we suggest you go through the following before you make the final decision.
Easy to start: To begin with, one just needs to download the OroPocket app, create a free account, and upload KYC documents. Once the KYC gets approved, you are all good to go.
Low investment: With OroPocket, you can start really small. The minimum investment possible is Rs. 1. That really suits the small investors.
Reasonable fee structure: OroPocket does not charge any amount in the name of storage or insurance. The only fee that’s payable is the transaction fee, which is flat 0.25% of the transaction value.
Safe & Secure: At OroPocket, the integrity of your holdings is of the topmost priority. To ensure this, the company keeps the gold safe in digital vaults located in UK, Switzerland, Singapore, and India. Anyways, the investments are made in the name of the investor. So, even if the company goes under, your investment is safe.
Assuring the integrity of your investment: OroPocket undertakes several initiatives to ensure investors of the integrity of their holdings. The company makes use of the Blockchain platform to allow investors to verify the integrity of their investment. In addition, a team of independent auditors checks their vaults on a daily basis to ensure the 1:1 physical backing of the assets.
For Indians, gold is much more than an investment option. So, when it comes to choosing among various investment choices, gold outshines. Data also suggests that gold has always lived up to the expectation of the investors. If an investor is ready to wait for some time, gold has always given a return, as no other investment option has.
In the last few years, digital gold has emerged as the preferred way of investing in gold. And when it comes to investing in digital god, OroPocket has made the entire process very easy to understand and operate. With several investor-friendly initiatives, OroPocket is fast emerging as the preferred choice of young-age investors.