Should You Consider Buying Digital Gold

Last Updated : Nov. 2, 2022, 5:26 p.m.

India and gold! These two are related to ancient times. You must have heard India was known as ‘the bird of gold’ in the past. It is the world’s second-largest consumer. It is one of the most favourable modes of investment for many because of its highest return plans.

What about digital gold ? Is it beneficial? What are the cons and pros of buying it? If you have the same questions and are looking for the answers, you stop at the right place!

Dive into this article to know more!

What Is Digital Gold?

Online gold with the equivalent amount and rate of buying physical gold is digital gold . In other words, it is a virtual way to buy or invest in gold. However, you do not need to hold it physically. The minimum amount of gold you can buy or sell digitally is as low as one rupee.

You can select the amount of digital gold you want to sell, i.e., whether entirely or in fractions, at any time at the market price. This form of gold is government-certified and pure with a 24K value or 99.5% pure. So, you can buy or sell them without worrying about any fraud.

Why Should You Invest in Digital Gold?

It is not false to say that investing in digital is a smart way of investing in gold. It is a safe, hassle-free, and convenient way to accumulate gold. You can purchase digital gold via various wealth management channels, e-commerce portals, and payment and banking apps.

When you buy gold physically, you face issues with its purity and legitimacy. However, with a government-approved licence, you do not have to worry about these issues while investing in digital gold .

The second biggest issue you will face while buying physical gold is storage and safeguarding. With digital gold , you do not need to worry about these things. This gold is stored in insured vaults and bought online, making it safe and secure.

What Are the Benefits of Investing in Digital Gold?

Investing in this gold form offers you many advantages. Some of them are given below:

• The process of buying or selling digital gold is hassle-free.
• Because of government securities, it is safe and secure to buy digital gold more than physical gold.
• On purchasing it, you are offered secure vaults by the company. It increases the trust of buyers.
• You do not have to worry about locker charges or theft for safeguarding it.
• You can invest in this gold as low as one rupee or as high as you desire.
• This gold form can also be used as security for the loan.
• You can easily exchange digital gold with coins, physical gold, or bullion anywhere and anytime.
• With a purity of 99.5% or 24K, you do not have to worry about the genuineness and purity of digital gold.

Is There Any Risk Related to Investing in Digital Gold?

Although it is much easier to invest in this gold form, you need to take care of some risks that also come with this investment.

• Its biggest disadvantage is the lack of managing agencies that follow trading rules and regulations associated with virtual gold.
• Many platforms offer storage facilities for the digital gold you purchase with a time limit. You can withdraw your gold or sell it after its expiry duration.
• Investing in this gold has an upper limit. Currently, you can invest upto two lakhs.
• It will be best if you bore on the delivery and make charges associated with it.

Where Can You Buy Digital Gold?

Digital gold is offered by mainly three companies in India.

• Augmont Gold Ltd.
• Digital Gold India Pvt. Ltd.
• MMTC-PAMP India Pvt. Ltd.

These all are government-licenced agencies. Apart from these, there are many online platforms where you can buy them.

At the End

Investing in gold can make your portfolio for the long term. With the digitalisation in various fields, investing in digital gold is a profitable option. It is safe, secure, and flexible. Moreover, you can invest from the lowest amount of ₹1.

This form of gold is easily reachable to everyone. It offers a real-time approach to market prices and quality assurance. The process is very convenient and struggle-free. So, enjoy the benefits of investing in digital gold today!