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Confused about whether digital gold is a perfect option for you? Read this article to know the benefits of investing in digital gold in today’s time.
Ever since the pandemic hit, digital adoption of physical products has proliferated. From banking to payments and even gold, everything has become accessible online, with digital adoption among Indians growing rapidly.
Digital gold has to be one of the most unique and out there ideas, and today we want to talk to you about the benefits of investing in it.
First and foremost, you should know that buying digital gold is just as legitimate as buying physical gold. As you may well know, gold plays a significant role in Indian society and culture.
Whether it's a wedding, a family celebration, or a festival like Diwali, gold is always a popular choice for a present. Investing in gold through internet channels is novel, incredibly hassle-free, and risk-free.
Digital gold investments may be made for as little as INR 10, with complete assurance of the gold's purity, in contrast to the standard online purchase of gold, which requires a certain amount of money.
The meaning of "Digital Gold"
Traditionally the most popular approach to investing in gold has been to purchase actual gold in the form of:
- Silver bullion
Other options include sovereign gold bonds, gold mutual funds, and exchange-traded funds (ETFs) that invest in gold. However, Digital Gold has grown in stature and popularity over the last few years.
There are unquestionably a few drawbacks to investing in actual gold. There are concerns with determining its authenticity and purity, as well as with storing and protecting it.
The fact that a pandemic is already unfolding is another serious problem. Going to a gold dealer or a jewelry store is not ideal.
You may invest in gold online whenever and wherever you choose; all you need is access to the Internet or a mobile banking app.
The best part of purchasing digital gold is its security, as it's stored in insured vaults by the vendor on the buyer's behalf.
Also, it enables us to avoid the difficulties associated with buying gold in its physical form.
With that being said, here are some of the significant advantages of investing in digital gold:
Benefits of investing in digital gold
No cost for storage
Most bank vaults generally charge a specific amount for storing physical gold. However, this doesn't apply in the scenario of purchasing digital gold.
You can invest in digital gold, which is automatically allocated to a storage facility. Since it is entirely digital, you can choose to redeem it at any point and use the amount.
Don't wanna sell your digital gold? You can choose a better option of converting it to physical gold whenever you want.
If you are an investor who would like to convert your e-gold to physical gold, you must submit an SRF to the National Spot Exchange (NSEL) requesting the conversion of your Demat units into physical gold.
The investor in SRF must also specify the exact monetary value of the gold bars they will receive.
Get real-time market prices of the gold
Another added benefit of working with digital gold is that you can trade it at real-time value whenever you want to buy or sell.
The value of the gold doesn't depend on other external factors, and there are no third-party fees that apply to the overall handling and exchange of the gold on any platform.
By working with the real-time prices of the gold, you can smartly make a neat profit when timed properly and continue investing in gold bonds and ETFs that work in your favor.
Buy and sell from home
This one's a no-brainer! You can transact entirely online, which means that you can buy and sell your gold with just a good internet connection and a browser.
Some multiple sites and apps allow you to buy digital gold online in a matter of minutes, so you can always access it whenever you want.
The safety factor
Of course, safety is among the most underrated aspects of working with digital gold. The gold you purchase is safely stored in vaults and units, and they can be redeemed whenever you want in an instant.
This makes digital gold the safest way to invest in the commodity without worrying about its storage and security.
You can also safely use digital gold as collateral for any loans, as it is widely accepted. Most lenders accept this because it is considered to be 24K purity.
It also allows you to avoid any of the hassles related to any form of paperwork and has a lower chance of being rejected.
No limit on purchase
There is no limit on the amount of gold you want to purchase. You can even buy gold worth just one rupee, and it's still counted as an investment.
If you want to invest in gold, this is the best way to do so without worrying about a minimum amount.
Gold is also an excellent gift to give to your loved ones. Of course, we've seen this over decades as our close family and friends often received gold as gifts from loved ones.
That's because it's an excellent investment that will only increase in value over time. Add the fact that it is super easy to transact with digital gold, and you have a product that can serve you and those you gift well for years.
Protection against market volatility
Gold investments have been considered a safe bet for decades, and their inclusion in long-term portfolios is not surprising.
Despite shifts in how gold is stored in investment accounts, gold as a whole remains a solid bet for anyone looking to build lasting wealth.
When people invest, their preferred approach changes as the average age of investors grows. Investing in digital gold to produce long-term wealth is a much more rational and secure choice for digital natives who pick a reliable tool in the safety of their digital domain.
Gold is delivered home
You may convert your digital gold into actual gold at any time and location. You can order gold in the form of coins or bars and get it delivered directly to your home.
Transferable to future generations
Gold investments are readily transferable from generation to generation, as is our nation's custom.
You may have noticed that gold jewelry is a traditional gift exchanged during weddings and other major life events in an Indian household.
So, if you have access to gold or invest in this yellow metal, this asset can be passed to your kids as part of your estate plan, knowing they'll have something practical to utilize in the years to come.
It retains its luster even after prolonged exposure to the elements, and its worth in the marketplace is unaffected by its age.
It doesn't require much maintenance
Gold is an excellent investment since it can be stored safely for hundreds of years without any attention from the investor.
You must keep your properties in good shape, which may be much work if you're already juggling a demanding career and a family.
On the other hand, gold is an investment that can be bought and stored away for decades without any special care on the investor's part.
Some of the myths around digital gold
As with any new investment opportunity, especially digital, there are bound to be many myths that need to be unraveled. Here are some pertaining to digital gold:
No physical proof
A prevalent misconception is that a buyer of digital gold does not get physical possession of the asset. That is not the case.
All digital gold you purchase is safely secured in vaults in secure locations. The gold that customers have purchased is readily available for pickup anytime.
Extensive paperwork is needed
If you intend to buy digital gold, all you require is a smartphone, access to the Internet, and a bank account or UPI! It is as simple as shopping online for any other product. If your transaction exceeds ₹2 lakh, you must provide your PAN card information.
The gold is not pure
You might have heard vague news on how online gold is not as pure as the 24 Karat gold that SafeGold offers. However, that's not true because SafeGold's coins and bars are guaranteed to be 99.99% pure since they are all assay-certified.
Digital gold is excellent news for the gold market since it makes gold more accessible to the general public. The low price points open substantial new opportunities for the industry's stakeholders.
With as minimum as Re.1, you get to start your investment in digital gold; this is a blessing for beginners who have difficulty parting with a chunk of their income on other investment assets.
So, start investing in digital gold on the Jar app in less than 45 seconds that lets you grow your digital gold portfolio according to your convenience. You can start investing with just ₹10.