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Digital Gold is the new way of investing in Gold. Hence, there are many myths around it. Let's find out the truth.
We all know Gold has captured imagination and obsessed throughout the ages. It never goes out of style, and now with the emergence of digital gold there are many misconceptions about digital gold that are circulating in the market.
Actual 24k 99.9% pure Gold is kept safe in a vault in your name by one of India's three gold banks - Augmont, MMTC - PAMP and SafeGold - for every gram of Gold you buy.
With a single click of a button on the app, you may buy, sell, or request physical gold to be delivered to your home.
On top of that, there is no minimum purchase need for Digital Gold. You can begin with as little as Re 1. Now every one can buy Gold.
But as people are new to this asset, they are many misconceptions and doubts floating around about Digital Gold.
Let's bust each of them together to help you make better decisions:
1. Gold is an expensive commodity. You have to be wealthy to save in Gold.
Truth: Not in the least! Digital Gold can be bought for as low as Re 1 using the Jar app. Yes, you read that right.
Many people consider Gold to be a status symbol, however contrary to popular assumption, you can invest any amount of money you want.
Gold may be obtained for a low cost and is a cost-effective investment. The once-unattainable precious metal is now widely available to everybody and everyone.
2. Online Gold isn't pure Gold.
Truth: On Jar, Digital gold is backed by 99.5% 24 karat purity. When you buy Digital Gold, you’re actually buying from mediators helping you access that gold from reputed companies like Augmont Gold Ltd, SafeGold, and MMTC-PAMP India Pvt. Ltd. So it's real, safe and pure.
3. Gold investing is too risky.
Truth: Every investment carries some risk and has its own set of advantages and disadvantages. The same goes for Gold. Gold, in reality, has a lower risk component than other highly volatile investments such as stocks and equities.
Gold is a desirable investment since it is a valuable natural resource that is always in demand. It's a good way to protect yourself from inflation and dangerous investments.
4. Gold is a paper certification of Gold ownership.
Truth: That's not true. You really own Gold, even if you can't see it. Every Gold purchase is kept in a secure and insured vault, regardless of the amount. Customers can access their Gold purchases at any moment and take delivery of it.
5. Gold is a bad investment. It doesn't bear any interest.
Truth: The truth is just the opposite. Well-planned Gold investments can pay out handsomely. For real.
Purchasing Gold is similar to holding a form of currency, which increases its security when compared to risky stock purchases. Gold can help you balance your portfolio, function as an inflation hedge, and provide excellent long-term capital returns.
Long-term capital gains (even if they are only three years old) after the sale of goods are taxed at 20% with additional perks.
For the past 92 years, Gold prices have been steadily rising. Gold has intrinsic value and has been a terrific asset in India, with even stronger returns YoY.
Gold is traditionally seen as a solid investment alternative when compared to diamonds or platinum, which do not have the same resale value as Gold.
6. Purchasing Gold is complicated and takes a lot of paperwork.
Truth: Digital Gold is very simple and convenient. A phone, internet access, and a bank account or UPI are all that is required to get started. Ta-da!
In no time, the Gold will be on its way to you. You can buy up to 30 grams of Digital Gold without KYC on the Jar App.
It's just like buying anything else online. PAN card information is required only in circumstances when the transaction exceeds Rs. 2 lakh.
7. Digital Gold isn't the same as physical Gold.
Truth: Yes, it is! You can convert your Gold balance to physical Gold (coins or jewellery) if it reaches 0.5gm.
Using the Jar app, you may withdraw or convert your money into physical Gold and have it delivered to your door at any time.
Infact, it's better than Physical Gold has you can save in fractions according to your spending power.
You don't break the bank with expensive Jewellery or coins in one go. Your Gold is stored in vaults with the Gold banks which are fully insured, hence there's no risk of theft either.
8. Long-term returns are best in equities.
Truth: This isn't always the case. Gold frequently outperforms other assets. If you check the data over the last five and ten years, you'll discover that the returns have regularly outperformed those of equities.
In reality, saving in Gold protects you from the wild swings in the stock market.
9. There are additional hidden charges and high storage prices.
Truth: Jar is a firm believer in transparency. When you invest using the Jar app, you only trade pure Gold, which is 24 carats.
All the amount you spend is invested in Gold. You will only be charged 3% GST at the time of purchase.
There are no additional fees or storage charges. All Digital Gold is stored for free in high-security vaults and is fully insured.
Now that we've cleared the air and established the facts, don't you agree Digital Gold is worth a try? Don't let this opportunity pass you by. All it takes is 45 seconds and Re 1.
Jar is more than just a digital investment app. It's also an automatic investment tool that allows you to save money without breaking the bank. Grow your savings.
Start investing in Digital Gold right away with the Jar app!