Historically the most common way to invest in Gold has been to buy physical gold in the form of: Coins; Bullion and Jewellery. But during a pandemic, another method of investing in Gold that has been gaining immense popularity is in the form of Digital Gold
Benefits of investing in Digi gold:
- Gold can be bought or withdrawn online 24 hours a day, 7 days a week, and 365 days a year.
- You can take physical delivery of the gold at your doorstep.
- You can invest an amount as low as Re.1.
- Digital Gold is genuine and the purity is 24K 99.5%
- Your purchase is stored safely and is also 100% insured.
- You can exchange digital gold for physical jewellery or gold coins and bullion.
- You can easily track their investments through online platforms (apps or websites).
- It is a good investment option for portfolio diversification and is also a good asset for hedging
- The digital platforms offer real-time gold rates. Therefore, the investor can take advantage of the price movements and make purchases and sell.
Impurities, hallmarking, and certification are all common problems with buying physical gold. When jewellery shops are open for 10-12 hours, physical gold can be bought and sold, that too paying making charge. There are also concerns about storage and security.
Investments in digital gold are made in certified 24 carats, 999.9 pure gold held in the custodian’s vaults. No making charges have to be paid while buying Digi Gold, apart from the 3% GST. Because the price of digital gold is the same all throughout India, you may buy and sell gold online at fully transparent, real-time market rates. Furthermore, unlike physical gold, digital gold may be purchased in much lower denominations.
Various kinds of Paper gold, such as gold ETFs and gold funds, have many of the same advantages as digital gold. The expense of digital gold sets it apart from other possibilities. Apart from a one-time cost of 3% GST, there are almost no costs associated with digital gold. Annual fees of roughly 0.5-1 per cent apply to both gold ETFs and gold funds. Unlike gold ETFs, you don’t need a Demat account to purchase digital gold.
That was all about buying various forms of Gold. While selling paper Gold, it is sold on exchange and physical gold only on jewellery shops. While we have four options of redeeming Digi Gold
- Digi Gold can be redeemed by selling it at the platform brought from and getting the cash.
- Digi gold can also be redeemed in form of physical gold. You can request delivery of the Gold in the form of coins, bars (as low as 0.1 gm) and they shall be delivered to your doorstep.
- The customer can also request the delivery by selecting from a wide range of jewellery articles from the Digi gold seller website by paying a nominal making and delivery fee.
- The customer can also buy jewellery with the partnered jewellers of the Digi gold seller in their city in lieu of Digi Gold sales.