Digital Gold: How, where and benefits of buying digital gold
By Benson | Published: August 27, 2021 02:50 PM2021-08-27T14:50:00+5:302021-08-27T14:50:00+5:30
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ndians are very fond of gold. Gold ranks first among traditional means of investment. This is because in times of difficulty, gold can be minted and converted into money.
However, gold has to be taken care of. If you don't feel safe at home, you have to keep gold in the bank locker etc. For this the bank has to pay a certain fee. But now a new option is emerging that is of Digital Gold.
Buying physical gold certainly has its downsides. There are issues of identifying its legitimacy and purity, then there are problems of safekeeping and storage. One more issue is that we are in the midst of a pandemic. It is not quite ideal to go out to gold dealers or jewellery stores.
Digital gold, on the other hand, can be bought online and is stored in insured vaults by the seller on behalf of the customer.
It also helps us overcome all the aforementioned issues of physical gold purchases.
All you require is Internet/mobile banking and you can invest in gold digitally anytime, anywhere. You can take physical delivery of the gold at your doorstep.You can invest an amount as low as Re.1. Digital Gold can be used as collateral for online loans.Digital Gold is genuine and the purity is 24K 99.5% for SafeGold and 999.9 in case of MMTC PAMP purchases.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 invest in digital gold from several mobile e-wallets such as Paytm, Google Pay and PhonePe. Brokers such as HDFC Securities and Motilal Oswal also have an option for digital gold investing.
Currently, there are three companies that offer digital gold in India. Apps and websites like Paytm, G-Pay etc only provide a platform for metal trading companies SafeGold and MMTC PAMP. Once you invest in digital gold, these trading companies purchase an equivalent amount of physical gold and store it under your name in secured vaults.
