Gold has been a store of wealth for over 3000 years. Longer than any other currency in the world. Gold is presented to sacred temples on practically all significant occasions in India since it is considered to be a “sacred metal”. India is one of the world’s top gold importers.
With the advent of the concept of digital gold, Indians are changing the way they save. Now, they save money in digital gold.
It is a great way to save money in digital gold. When you buy digital gold, the corporations will buy a comparable amount of physical gold and keep it in safe vaults under your name. It makes digital gold investments completely safe.
Let’s know more about it!
What is digital gold?
digital gold is the gold you buy online. It is a form of secured investment.
But why should you invest in digital gold? The reasons are the drawbacks to purchasing actual gold. Its authenticity and purity are difficult to determine, and there exists storage and safekeeping challenges. There’s also the unpredictable situations like the pandemic that might occur and hamper your financial health- making investment important.
There are better courses of action than visiting gold dealers or jewelry stores- buy affordable digital gold.
Digital gold is available for online purchase, and the seller will store it for the purchaser in vaults covered by insurance. It also aids us in getting beyond all of the problems with buying actual gold that has been described thus far. You can invest in gold online anytime, anywhere, with Internet or mobile banking.
Benefits of investing in digital gold:
1. No Storage Fees –
The expense of holding digital gold is nonexistent. If you invest in digital gold, you have your gold virtually. Because your gold is stored securely in safety vaults, you don’t need to personally worry about its safety or security.
However, most individuals keep actual gold in bank lockers when storing it. Bank locker fees are involved here and will directly affect your returns.
2. No Filing of Charges
If you purchase gold jewelry, jewelers will charge specific production fees for the item. Between 3% and 25% is the possible range. Especially if you’re buying gold as an investment, you wouldn’t want to pay 25% more than the gold’s value. As a result, investing in digital gold without incurring fees is a fantastic way to save money in digital gold.
3. Purity
When investing in actual gold, purity is a constant issue. Most individuals worry about whether they receive the desired purity, as the jeweler claims. Investing in digital gold, constructed of 24-carat, 99.95% pure gold, may end your fears. Therefore, you needn’t be concerned about the purity of our gold here.
4. Actual Returns
Digital gold is physical gold kept in safe deposit boxes. You will therefore receive the same profits as you would have if you had invested in physical gold because it is a real investment in gold.
5. Lack of Theft Risk
There is always a concern that your physical gold may get robbed. Due to these reasons, people store their gold ornaments in bank lockers and pay steep bank locker fees because of the risk of theft. Digital gold, however, is not at risk of being stolen.
6. Convenient
Compared to purchasing physical gold, investing in digital gold is quite convenient. If you want physical gold, you must go to a jeweler and choose a coin, bullion, or piece of jewelry. Additionally, you must return to the jeweler if you wish to sell your gold at, generally, a much lower price.
On the other hand, you can invest in digital gold using a smartphone. To start investing, you must create an account with a digital gold platform. plus, since the forces of demand and supply control its price, you are always on the profit side!
7. Collateral
An investment in digital gold is comparable to one in actual gold. You can use digital gold as collateral security if you need money immediately and wish to apply for a loan from a bank. The interest rate on these gold loans is lower than that of other unsecured loans because they are secured.
8. No minimum investment required
You have to spend a minimum amount if you choose to buy physical gold. Even one gram of gold can set you back Rs. 5000. As opposed to this, investments in digital gold can be made with as little as Rs. 10. As a result, you can give any quantity of gold you like without worrying about the required minimum.
Conclusion
A small portion of your portfolios should consist of gold as an investment class. However, investing in gold through gold ETFs and sovereign gold bonds is much more complex than digital gold.
The main argument favors including gold in a long-term investment strategy. Gold bonds are preferable because they pay an additional 2.5% interest. For short-term hedging, however, since bonds are less liquid, investing in gold ETFs is preferable because SEBI governs them.
For individuals who prefer to invest in actual gold, digital gold would be an attractive investment once the Rs. 2 lakh investment cap and a regulating body are established.
Photo by Merlin Lightpainting:
