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Find out what makes Digital Gold lucrative for millennials and why one should add Gold to their portfolio.
India is, as we all know, a very young nation. Over 34% of the population in India—440 million individuals—are millennials. Millenial Investors started to work, have a reliable source of money, and a job they can count on.
What they seek now is how to manage their finances. This is what has led to the boom of digital investment platforms lately. Today’s millennials want to stay trouble-free, desire comfort and a flawless user experience.
A Financial Express article mentions that with this rise in fintech platforms, the digital investment market is set to be worth $14.3 billion by 2025, up from $6.4 billion in 2021 at a 5-year CAGR of 22.4%.
Another research by Benori Knowledge stated that 93% millennials invest on digital platforms and Gen Z are following their footsteps.
Millennials are well aware of the importance of diversification in their investment portfolio to keep it healthy and well-balanced. They have never shied away from using technology because it has played such a significant role in their upbringing.
Along with that, when it comes to a dependable investment option, buying Gold has always been their top choice. They have consistently placed their trust in Gold due to both cultural and economic factors.
Even the metal has proven to be resilient and long-lasting, strengthening as an investment option over time. In this year, 2022, Gold price gained 6.5%, outperforming stocks over the first six months.
Do millennials invest in Digital Gold?
Gold jewelry, bars, and coins all have storage, security, and maintenance needs that must be met. Given these demographic characteristics and India's fondness for Gold, millennials are now flocking towards the new investment choice - Digital Gold.
It is the ideal choice for technologically aware millennials looking for straightforward and lucrative investment opportunities. And they appear enthralled by the prospect of researching the brand-new, risk-free digital investment option.
In an interview with Outlook, Vikas Singh, MD and CEO of MMTC-PAMP, one of the 3 Gold banks in India, said that they saw a 50% jump in digital Gold sales in the lead up to the festive window (Sept’21 – Oct’21) and a similar quantum of spike in the number of engaged users.
Why do millennials love Digital Gold? Let’s find out.
1. You can easily invest in Digital Gold.
Although the majority of funds provide greater interest rates, they also require you to lock your money away for longer periods of time. For many millennials, being unable to access finances seems impractical. What are they going to do in case of an emergency?
This is the part where Digital Gold comes to their rescue. Investors can start with investing from just ₹10 and 45 seconds, with the option to buy and sell their digital Gold anytime.
India is also the largest Gold market in the world, where demand for the metal increased by 37% during the outbreak. Here are 16 Surprising Stats About Gold after the pandemic.
Millennials discovered making investments in Gold through the digital yellow metal. The ease of investment feature even attracted investors who had never purchased Gold. People can now invest in Gold without having to save up a large sum of money.
This is helpful for millennials who have just started working and want to be able to invest their money for future returns while still setting aside some money for personal necessities.
2. You can invest when the price is right.
On lucky days like Akshaya Tritiya or Dhanteras, the older generations are more likely to purchase physical Gold. However, millennials are more price sensitive than previous generations, They would rather purchase Gold while the price is declining. With Digital Gold, such impulsive investing is made simpler because an investor may buy as much or as little as they want, at precisely the correct time.
3. Digital Gold is safe.
Millennials like Digital Gold because it makes a great long-term investment. Indian culture has long placed a high value on Gold jewellery investment. This Gold also has a history of being passed down through the generations, so it typically stays in the family for a very long period. But physical Gold has its own cons.
In the case of Gold jewellery or coins, you'll have to get a vault to store your Gold and there's always a chance of it getting stolen. Digital Gold filled that loophole. There are no storage or security issues with Digital Gold. Every gram of Gold in your account is guaranteed by real Gold stored in a secure vault in your name by the seller. There's no risk anytime.
4. Investing in Digital Gold facilitates portfolio diversification.
Putting your entire investment portfolio in one basket is never a wise idea. If possible, the
money in a portfolio should be spread among many asset types. Therefore, wise investors would always spread their risk over a variety of assets, with Gold being one of them. A Mint article mentions “As per the India Gold Market report by World Gold Council, for every 1% rise in inflation, the demand for gold in India soars by 2.6. This makes it critical to diversify your investment portfolio and have gold in the mix to the tune of 10-20%.”
Given that Gold is a distinct kind of investment, it will assist in diversifying your current investment portfolio. You can think of it as insurance because Gold will maintain its worth over time and will safeguard your portfolio even in unforeseen circumstances.
Apps like Jar are trying to bridge the gap between millennials and digital Gold by making investing in this asset smooth and hassle-free.
5. Gold acts as a hedge against uncertainty.
Gold prices have a reputation for being the most stable during difficult times. In the previous ten years, Gold's prices have increased by roughly 300%. While the majority of assets struggle during inflationary times, Gold is a commodity whose value rises along with inflation, making it a particularly effective hedge against it. You can avoid market swings and dangerous investments by investing your hard-earned money in Gold.
Despite changes in how Gold is handled, Gold investing is unlikely to go out of style in the future, particularly for long-term investors. Due to its simple liquidity, stability, and long-term sustainability in these unpredictably changing times, Digital Gold has become more popular among millennials.
With features like start investing from ₹10, high liquidity, withdraw anytime, 99.99% pure digital Gold, no safety and storage issues, good returns. Why wouldn’t anyone invest in Digital Gold?
6. The experience is hassle free.
Millennials are accustomed to a digital-first and simple approach because they often use applications and online platforms that make information and knowledge transparent. Face-to-face contacts take a lot of time, so they tend to avoid them and opt for digital communication because it is quicker. The level of trust that digital natives have in technological solutions, such as having access to digital Gold at their fingertips, is higher.
With the help of cutting-edge technology, Digital Gold offers investors the ability to possess genuine Gold without having to worry about examining the physical metal for purity or finding a safe place to store it. Fintech companies like Jar that sell Digital Gold ensure its purity, store it in safe vaults, and even give full insurance to customers.
The preferred investment instruments of people will change along with technology. Millennials are increasingly using digital substitutes and preferring to handle their own investments. They are aware that Gold is a long-term investment that will pay off. It has the potential to become a potent investment tool. Hence, the demand for Digital Gold will continue to rise because it is the ideal union of tried-and-true traditional investment options and reliable technology. It is a wise move to give millennials access to technology that enables Digital Gold investing easy and convenient to accommodate their preference for holding assets digitally rather than physically.
Invest in Digital Gold through the Jar app. Download now.