News Karnataka
Saturday, December 09 2023
Markets

Understanding digital gold for a sound investment

zoltan tasi uNXmhzcQjxg unsplash
Photo Credit :

Gold is well-known as an investment option. This precious metal is known to be one of the best options among the other investments. If you find yourself constantly going online to find gold price today Agra or whichever city you are from then investing in gold is certainly what you desire to do. According to experts, gold has given positive returns in the past. It is less risky as compared to any other investment. Thus, many people prefer to hold physical gold rather than a saving cash. However, physical possession of gold has its own disadvantages. Possessing physical gold can also be risky. There are chances of losing it through theft or carelessness. People who do not wish to possess physical gold have an alternative option of investing in gold through digital gold

Digital gold is a new concept that is being introduced in India by MMTC (Metals and Minerals Trading Corporation of India), a Government of India enterprise. MMTC is partnered with PAMP, Switzerland. PAMP or otherwise known as Produits Artistiques Métaux Précieux is one world leaders in branding bullion.

With an investment as low as Rs 100, you can purchase 24K 99.9% pure gold digitally. Digital gold makes buying and selling gold easier, more trustworthy and transparent. Digital gold and physical gold are almost similar and the only difference is that you will not be able to hold the digital gold in your hands. Digital gold offers distinct advantages over physical gold in that its purity and liquidity are ensured, it can be stored virtually, and there are no storage or waste-related concerns.

How does investing in digital gold work?

To invest in digital gold, you would need to do it through an authorized third party broker or an agent. This is because as the investor you will not get direct access to the physical gold. When you place an order your agent buys an equivalent amount of gold and places it on your behalf. Similarly, while selling, based on the amount of digital gold holding you want to sell, your agent will sell the gold kept in the vault at the market price and the money from the sale gets deposited in your account.

Why is investing in digital gold better than other gold investment options?

Investing in digital gold is better than physical gold because it is much cheaper. Suppose you buy gold jewellery be prepared to pay for any manufacturing charges. Moreover, in the manufacturing process, some gold may get wasted.

Also, there is a risk of getting impure gold.

Many physical gold buyers are duping innocent minds with fake purity certificates. Scams related to gold have been reported in India in the past as well. So, if you invest in physical gold, then there are chances that you’ll fall prey to a scam.

Similarly, gold bars and coins need investment for safe storage like bank storage and these too can be uncertain beyond a point.

Additionally with buying physical gold you need to constantly go to the markets to learn about the gold prices. Instead of going to the store to find out today’s gold rate in Mumbai or Bangalore you can just keep track of digital gold online from the comfort of your home. Click here for more info.

Hence clearly, if you are to invest in gold, then the best option you have is digital gold.

Photo by Zoltan Tasi on Unsplash

Share this:
MANY DROPS MAKE AN OCEAN
Support NewsKarnataka's quality independent journalism with a small contribution.

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Editor's Pick

Find the best odds at 10Cric and IPL Betting 2023! Signup today and get up to a 100% deposit bonus.

To get the latest news on WhatsApp