The opportunity to invest in digital gold has brought convenience and flexibility. You can buy digital gold on EMI from the comfort of your home, which means that you do not have to visit any physical location. It is an instrument that enables you to invest in pure gold. After buying your digital gold on EMI, your seller stores an equivalent quantity of physical gold in secured vaults. When you make the payment, you will get an invoice, and the said quantity will reflect under the vault balance in your account.
It allows you to sell your gold anytime at the current market price, in either rupees or grams. You can also take possession of your gold in physical forms like coins or jewellery. The maximum limit to buy digital gold is Rs. 200,000/- in a day.
- Getting digital gold is better than physical gold
The benefit of digital gold is that you can buy and own gold without worrying about its safety. It eliminates the hassle of finding storage and the stress of security.
Compared to digital gold, physical gold faces issues of impurities and usually entails high making charges. Also, a digital gold account comes at no cost except a 3% GST. Regardless of where you live in India, the gold price remains the same. You can sell your gold items in the future without facing any deductions. Digital gold can be purchased in certified 24 karat, which is 999.9 pure gold.
Most digital gold sellers offer the benefit of doorstep delivery of the physical gold at a nominal fee. It is when you wish to redeem your digital form. Besides, you can buy digital gold in small denominations than actual physical gold.
- Difference between digital gold and paper gold
Digital gold differs from other available options in the cost. While buying digital gold, you do not have to incur any cost apart from a one-time GST of 3%. However, if you invest in instruments like gold EFTs and gold funds, you will have to incur recurring annual charges. You do not need to hold a Demat account to buy digital gold.
Keep in mind that you can buy digital gold in very minute quantities at a time. Most digital gold sellers allow you to purchase digital gold for as little as Rs. 100. Some online platforms allow the transfer of gold balance to accounts on the same platform, making way for a convenient gifting option.
- Safety and security
It is worth pointing out that the company that sells digital serves as the custodian of your gold, whether you are buying directly or through a partner platform. After buying digital gold, a trustee is appointed to ensure the quality of vaults.
Your digital gold is stored in secured vaults that are fully insured for any unforeseen events, such as theft or damage by natural disasters.
- The risk involved with digital gold
Currently, it is not under the purview of any regulatory body. So, there is a risk here as rules are not yet in place to ensure the complete safety of gold. Also, digital gold has been gaining tremendous popularity among the young generation, resulting in the increased amount of gold stored in vaults. So, sellers are coming up with new norms for digital gold.
So, invest in digital gold instead of physical gold to save on making charges and get higher returns.