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Digital gold is revolutionising investments for young Indians. Here are 5 reasons why it’s smart, secure, and future-ready
Digital gold has become one of the most popular investment assets over the last few years. Digital literacy and internet access have paved the way for young Indians to familiarise themselves with the latest trends in the financial sector.
Gold has always been one of the safest investment options for Indians. With the emergence of digital gold, millennials and Gen Zs prefer digital gold over traditional gold.
But why has digital gold become a preferred investment option over physical gold? Let’s take a look at the benefits of investing in digital gold:
Why Are Young Investors Choosing Digital Gold?
1. Flexible investment
One of the most appealing aspects of investing in digital gold is flexibility. Unlike most investment assets, digital gold does not have a cap on the investment amount.
Investors can start saving their money in gold with just ₹1. This allows users to invest as much as they want at any particular time.
A lot of young investors can start investing as little as ₹10 from their pocket money or part-time job salaries to build their wealth early.
2. Convenience
Gone are the days when people would need to visit banks to enquire about their gold investments and get trapped in lengthy paperwork.
With multiple online platforms like the Jar App, users can easily link their bank accounts and invest their money via major UPI apps such as Google Pay, Paytm, and Phonepe.
Investors can choose to manually invest any amount of money in digital gold or set up an autopay system where a set amount would be deducted at regular intervals, i.e., daily, weekly, or monthly.
3. Zero Storage Fee
Purchasing physical gold meant investing in a bank locker to keep it safe. Even if investors chose to store their physical gold at their homes, theft was always possible.
Digital gold eliminates the risk of theft and any impurities as it is stored in bank-grade lockers with zero storage fee.
Users have the freedom to convert their digital gold into physical gold at any time.
4. Easy Withdrawals
Digital gold is highly liquid as it allows investors to easily convert their savings into cash as and when required.
Platforms like the Jar App allow investors to easily encash their savings straight into their bank accounts in just a few clicks.
Young investors can rely on their digital gold investments for emergencies, save money for their favourite gadgets, or plan their dream vacation.
5. Lower Tax Rate
In India, most investment assets attract high tax rates on capital gains. The rate of long-term capital gains tax on gold held for more than 3 years in India is 20% plus a 4% cess charge.
On the other hand, for short-term capital gains, the charge is similar to the income tax rate. However, with digital gold, users only have to bear a 3% GST charge at the time of withdrawal.
Conclusion
According to a survey conducted by Moneyview among 3,000 people, 65% of millennials expressed their preference for digital gold over physical gold.
75% of respondents under the age of 35 cited liquidity and convenience as major factors to favour digital gold.
Digital gold is increasingly becoming a very attractive investment option among young and seasoned investors.
With the current political and global economic scenario, digital gold is becoming a favourite among young investors as the safest investment option during financial uncertainty.
