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Is Digital Gold a Good Investment for 2025?

January 16, 2025

Table of Contents

    Considering digital gold for your 2025 portfolio? Uncover the insights you need to evaluate its value as an investment. Click here to read our comprehensive guide.

    Introduction

    The global political and economic landscape is due for a major shakeup as 2025 arrives. 

    With the re-election of U.S. President Donald Trump, there is potential for significant changes in global fiscal policies, international trade policies, and geo-economic shifts. 

    With so much economic uncertainty, people are going to move towards safer investment assets, such as gold. 

    The increasingly volatile economic landscape makes assets such as digital gold even more attractive for investors seeking a haven during inflation. 

    Trends Shaping Digital Gold Investment in 2025

    Let’s take a look at some of the trends that are likely to influence digital gold investment in 2025: 

    Geopolitical & Economic Influences

    Geopolitical and economic tensions are among the major reasons for the global growth of gold. 

    Global finance policies and economic unrest are strong driving forces behind the increase in gold prices. 

    For instance, the U.S. Elections have historically played a huge role in increasing gold prices. 

    During Trump’s 2017 presidency, the US-China trade war and the North Korean diplomatic disaster led to an increase in gold prices in 2020. 

    On the other hand, the COVID pandemic was also a major contributor that aggravated the rise in gold prices due to inflation. 

    Digital Gold Demand

    Despite being a new investment asset, the demand for digital gold is likely to increase in the next few years. This is due to its affordability and the emergence of young investors in a country like India. 

    Digital gold investments happen over digital platforms offering easy and secure investment tracking methods. Furthermore, investors can buy or sell digital gold from anywhere, anytime, through apps like Jar. 

    Investors can buy digital gold according to their financial capabilities, as there is no minimum capital requirement.

    Portfolio Diversification

    Investing in gold is the best practice for diversifying investments. According to financial experts, allocating at least 10–12% of your investment to gold mitigates risk.

    Young investors are increasingly moving towards gold assets such as ETFs, bonds, and digital gold. 

    Investing your money in various asset classes helps manage risks during inflation and financial market downfall. 

    Tokenization & Technological Changes

    With the rise of technological advancements in the financial sector, digital gold is becoming a hot commodity for young investors looking to add gold to their organisations. 

    The tokenisation of financial assets has given rise to fractional ownership of assets such as gold. This has broadened the investor market, making the precious metal accessible to all young and middle-class investors. 

    Several Indian fintech companies have launched online platforms that offer digital gold investment offers starting from just ₹10. 

    This makes digital gold an affordable and attractive investment option for people from all classes, further raising its demand. 

    Should You Invest in Digital Gold in 2025?

    As discussed above, the demand for digital gold is constantly rising, and now is the best time to venture into digital gold investment. 

    Not only is digital gold a safe investment but also a very popular asset in the financial sector. Gold has historically been used as a hedge against inflation by seasoned investors to protect their wealth during global economic crises. 

    Platforms like the Jar App offer safe and secure options to invest in digital gold with affordable investment options.

    You can choose to invest via a SIP system where a set amount from your bank account will be deducted and invested in digital gold on a daily, weekly, or monthly basis.

    The app offers multiple options to redeem your investment amount, such as: 

    • Converting the invested amount into physical gold
    • Purchase gold jewellery using the invested amount
    • Withdraw the invested amount into your bank account

    Potential Returns of Digital Gold in 2025

    As per historical stats and facts, gold has proven to be a solid investment asset, especially for long-term investments. 

    Credence Wealth founder Kirtan Shah predicts that falling interest rates and central banks' purchases of gold are the main factors supporting gold prices in 2025. 

    He has also predicted returns of up to 10-12% in 2025 for gold investments, as per CNBC TV18.

    Investors looking to earn maximum returns on digital gold need to have a long-term investment plan for at least 5 years.

    Benefits of Investing in Digital Gold in 2025

    Check out the advantages if you want to begin investing in digital gold investments. 

    High Liquidity

    Digital gold is highly liquid, as investors can easily buy and sell it via digital platforms offering these services. 

    These digital platforms offer convenience, as digital gold transactions can be done 24x7 in just a few clicks. This flexibility allows investors to take control of their digital gold investments.

    Low Investment Amount

    Digital gold is highly accessible, as it can be bought for as low as ₹1. Investors can start their investment journey through the Jar App, where they can track their investments and check live gold prices.

    Conversion To Physical Gold

    Your invested amount in digital gold can also be converted into physical gold. The Jar app allows users to convert their savings into physical gold in the form of gold coins and gold jewellery.  

    No Storage & Security Issues

    Once the investors have bought digital gold through their preferred digital platform, their digital gold is safely secured in bank-grade lockers. 

    As opposed to physical gold storage, digital gold storage does not attract any additional fees. It also ensures guaranteed purity since it eliminates the chances of wear and tear or theft.

    Hedge Against Economic Uncertainty

    During economic uncertainty, gold has always been a hedge against inflation. Every time there is a global economic crisis or geopolitical tension, gold prices have soared high.

    Conclusion

    In 2025, purchasing digital gold provides a combination of ease, safety, adaptability, and financial security that fits in nicely with modern investing techniques. 

    As more individuals seek efficient ways to manage their wealth, digital gold stands out as a compelling option for both new and seasoned investors alike.