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Why It's The Right Time to Invest in Digital Gold

April 21, 2023

Table of Contents

    Table of Contents

      Do you believe gold is one of the best investment options? If you are planning to buy shiny metal, here is why it's the right time to invest in digital gold.

      Indians are obsessed with shiny yellow metal, and it's no surprise that India is one of the largest gold markets in the world.

      In addition to being a highly attractive investment option known for its stability even in highly unstable markets. It is also an important part of the Indian festive season & its presence is essential in auspicious events. 

      Typically, Indians have been buying gold in its physical form from local dealers nearby, where there is always a concern regarding the purity of the gold.

      However, an increase in financial literacy, and technological advancements, have introduced another way of gold investment: digital gold or e-gold. 

      What is Digital Gold?

      In simple words, Digital Gold holds the same value as regular gold with one major difference: it does not have a physical form.

      If you are planning to buy gold solely for investment purposes, then digital gold might prove to be a better choice over regular gold.

      Digital gold investment might help you boost your portfolio significantly, and there are several reasons why it's the right time for you to start investing in digital gold. 

      Digital gold investment might also help you boost your portfolio significantly, and there are several reasons why it's the right time for you to start investing in digital gold.

      Unlike physical gold, there are different ways of buying & investing in digital gold. So, digital gold is a great choice for almost all kinds of investors & their preferences. 

      Let's have a look at some of the benefits of digital gold investments. 

      Digital Gold: Why You Should Invest In Virtual Gold

      If traditional gold investments have been working out for Indians for centuries, is there a need for digital gold? We believe so, because every time you buy digital gold, several benefits might not be accompanied by physical gold. 

      1. Assured Purity

      One of the biggest concerns of anyone purchasing gold physically is the purity of the gold they are purchasing.

      There is no sure-shot method of knowing whether the gold you are purchasing is pure, and sometimes all you can do is trust the dealer and their words. 

      However, there are no purity concerns as far as digital gold is concerned because digital gold is 24-carat, and it's certified 99.5% pure. Platforms like Jar App sell 24-karat gold with only 99.5% purity, and they will certainly offer you peace of mind with your investment. 

      2. Secured Storage Facility

      One of the major advantages & reasons why you should invest in digital gold is because of the safe storage it offers.

      Unlike regular gold in its physical form, you do not have to worry about how or where to store the gold or how to transport the gold from one place to another. 

      Storing and securing your digital gold is the responsibility of the platform which you purchased the virtual gold from, and not yours.

      Additionally, you do not have to shell out extra money in the form of locker charges either. Sounds like a win-win scenario. 

      3. No Investment Limit

      A reason why digital gold is getting popular amongst the current generation is that it does not have an investment limit. There is no lower limit on digital gold purchases allowing everyone to invest & purchase digital gold with as little money as they wish. 

      Jar allows you to buy digital gold for as little as Rs.10, and there is no upper limit either. This is one of the major areas where digital gold triumphs over physical gold as regular gold is sold by weight, and several shops have a particular lower limit on purchase. 

      4. Highly Convenient

      Buying digital gold is highly convenient, and on Jar, all it needs is a few clicks, and you are done. You can buy digital gold from the convenience & comfort of your home. 

      You can buy either by entering the number of grams you wish to purchase or the amount you wish to invest. Once done, complete the payment process by paying online, and you will get a confirmation of the purchase. 

      It's usually easy to sell the digital gold you are holding, and again, it just requires a few clicks.

      Select the amount of money you want or the amount of gold you want to sell, and enter your bank details. Once the selling process is completed, you will get a confirmation, and the amount will be credited to your bank account or wallet. 

      5. Offers Multiple Investment Options

      Another reason why digital gold investment is better than physical gold is that digital gold offers you different ways of investing.

      When you are purchasing physical gold, you are investing in the amount, although the shape and forms might be different. You can purchase gold coins, gold jewelry, gold idols, and more. 

      However, with digital gold, there are different ways of investing all of it together. These include bonds, funds, and commodities. Here are different methods of investing in digital gold. 

      Gold Sovereign Bonds

      Sovereign Bonds are government commodities that are issued by the Reserve Bank of India, India's primary central bank. Sovereign gold bonds are denominated in gold, and you can purchase them for as low as 1 gram.  

      Gold Sovereign Bonds are popular because they offer you an interest rate of 2.5%, and you can either store these bonds in your Demat account or on paper. 

      Gold Exchange Traded Funds

      Exchange Traded Funds have always been popular with investors. With digital gold, you can take advantage of the Gold Exchange Traded Funds, where you get two benefits: simplicity of gold investments and flexibility of stock investments. 

      ETFs are generally traded on the National Stock Exchange, and you have the option of trading in ETFs at live market rates. 

      Final Thoughts

      Digital gold as an investment option is getting more and more popular with every passing day, and there are numerous reasons for the same.

      Digital gold offers you numerous benefits that are not accompanied by the purchase of regular gold in its physical form. 

      If you are looking to buy digital gold, you can start with Rs. 10 by using Jar App, a Daily Savings App. You can also automate your Daily Savings and invest in Digital Gold using the Jar App's " Auto Save" Feature.