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Why Should You Invest in Digital Gold and For How Long?

April 21, 2023

Table of Contents

    Table of Contents

      Digital gold is your new financial buddy. To know how it can turn the fin-tables for you, check out this article!

      Would you be surprised if we tell you that India is one of the largest consumers of gold? Or that, gold, in general, is India's favourite precious metal? 

      Well, we all know India’s gold rush has existed since ancient times.

      From assuming a family’s financial status through the weight of jewellery of the woman of the household to storing the excess money in physical gold for emergencies, India’s gold legacy has come a long way. 

      With new times emerges new ways of living and gold has definitely upgraded itself with time.

      The emergence of digital gold is in itself the epitome of the phrase-”Gold is here to stay”-and we have no reservations about that. 

      So, have you updated your savings and investment methods? Are you still swearing by physical gold or has digital gold taken over? 

      If you are stepping into the investment market and looking for the easiest kick, then, there is nothing better than digital gold. There are many financially profitable reasons why you should consider digital gold investment-ease and stability are just the starters for your finance palate

      Let’s dig in and see why digital gold is the right investment for you!

      What is “digital” gold? 

      Digital gold, as the term itself suggests, is the ‘digital’ form of your beloved physical gold.

      Instead of going to a goldsmith, you buy this gold from online platforms and an equivalent physical gold amount is stored in insured vaults.

      The process is completely safe and secure. 

      All you need to make sure of is to buy it from legit sellers and if you feel doubtful, you can even get your physical gold (24 carats) delivered to your home by the company.   

      Plus, since this investment is already in vogue, you won’t find it difficult to look for online platforms to buy it.  Apps like Jar lets you directly invest in digital gold. Everywhere, you can start with an amount as low as Rs. 10. 

      Why is it one of the best investment decisions you’ll make?

      1. Worried about the initial investment amount? There is no lower limit! 

      Well, the best part about starting a digital gold investment is that you don’t need a large amount of money.

      You can start investing with your spare change! An amount as low as Rs. 10 is eligible for digital gold investment.

      So, what’s stopping you from investing? 

      2. The best option for a collateral

      In case you are planning to take a loan and feel that you lack collateral, digital gold can come to the rescue.

      Since this asset is backed up by assured physical gold and insured security vaults, lenders do not generally hesitate to consider it as collateral.

      With gold’s stability and 24k purity, your loan request won’t get rejected! 

      3. Need cash immediately? Trade your digital gold easily. 

      Now there are many instances where nothing can beat the physical gold.

      Digital gold has this significant feature that it can be easily exchanged anytime and anywhere for physical gold. And not just jewellery but coins and bullion too!

      In short, if you feel at ease with physical assets rather than digital ones, then digital gold won’t disappoint you. 

      4. Excellent purity and guaranteed safety

      As you may already know, gold that you buy digitally is backed by the same amount of physical gold.

      This physical gold is pure-24 carat real gold with 99.99% purity! Amazing right? 

      Plus, in many instances, companies offer only a limited time period of safe-insured-vault facility. Once that is over, they deliver this gold to you.

      You can ask to do so earlier if you want to. Therefore, you don’t have to worry about the genuineness of the deal.  

      5. Simplest yet most stable investment

      Hasn't gold always been a safety zone for investors?

      It's no new phenomenon but has been relevant since the day humans discovered how valuable gold is.

      Till this day, investors like to back their savings with gold investments. Since its value has never been ‘0’ unlike other financial instruments, gold definitely makes up the most trusted investment metal. 

      Also, the returns are stable.

      There might be some ups and downs but the gold market is usually in its pink health.

      In India specifically, the festive season is the gold season and the best part about this is that it comes every year!

      Even when the lockdown came unwarranted, the gold market flourished.

      So, do you think anything can take away gold’s charm? Definitely nothing! 

      Risks that might persist with digital gold: 

      1. Absence of an official regulatory body

      Well, yes there is no official government regulatory body that looks into digital gold investments. This might be seen as a limitation.

      However, it actually isn’t. There are enough successful, reliable, credible and incredible platforms where you can buy digital gold.

      It is a great surprise that despite the absence of an official authority, digital gold investments are, in general, absolutely safe! 

      2. Timed storage facility

      This might be a concern for you if you do not have the facility to actually store gold.

      However, the time for which the company keeps your gold stored is long enough for you to figure out what to do once it gets delivered to you.

      Bank lockers are definitely a  great option to try out in case you don’t want to keep them at your home. 

      Also, in case you fail to accept the delivery on the due date, some companies might charge you an extra sum to keep it further. So choose the platform wisely. 

      3. Investment upper limit

      As we said, there is no lower limit for digital gold investment.

      However, there is an upper limit! Currently, on any platform, you can invest up to 2 lakhs in digital gold.

      So in case you were planning to make it a very huge investment, you might have to wait till this ceiling is raised. 

      How long can you hold your digital gold investment? 

      When you make a digital gold investment, remember that you cannot hold it forever.

      Eventually, you will have to either accept the delivery of physical gold or sell your digital gold further.

      Mostly, the time period ranges between 5 to 7 years- long enough for you to figure out market conditions and decide what you would like to do with your gold. 

      In all, keep these points in mind while taking the investment decision of investing in digital gold.

      Research your platform and plan out in what form you would like your gold to be.

      If conditions are favourable, sell it as soon as the due date approaches. 

      In case you need physical gold, accept the delivery timely.

      Digital gold is a new form of investment and has been a very successful collateral and financial backup so far.

      Do invest in it if you want to even out the risk in your portfolio! 

      Download the Jar app and start investing in digital gold. With a mere sum of Rs. 10, you can balance out the risk in your portfolio and stabilise your financial situation. Round off your spare change and let Jar automatically invest it for you! Download the Jar app today!