Gold is more than an investment for Indians, and carries a legacy no other precious metal has. Be it the festive season, weddings, or any other special occasion, purchasing gold is often associated with auspiciousness apart from being an excellent hedge.
However, the price of gold has maintained its upward-moving trajectory and today, they are quite steeply priced in the market. Moreover, while buying physical gold, you need to be mindful of many things like its purity, making and other extra charges associated with it that inflate the selling price.
Due to this reason coupled with its limited availability worldwide, gold is no more easily accessible commodity in the market. This intrinsic preciousness of the gold also becomes a cause of concern for gold buyers who need to make necessary arrangements to ensure its safety, by keeping them in bank lockers or vaults. Public-sector banks charge upwards of Rs 800 for providing these facilities. It is also important to note here that when you need to sell your gold during times of a financial emergency, things aren’t as easy as they may seem. Not all dealers in the market will buy your gold. Some dealers will only buy back the gold that they have sold themselves. If they agree to buy gold purchased from other places, they are likely to trade it at a lower price, making it an unprofitable proposition.
This is where digital gold comes into the picture, eliminating all the possible drawbacks of physical gold in the form of bars, coins or jewelry.
In an increasingly digitally oriented consumer market like India, the concept of digital gold is coming into vogue, bringing a transformational effect on how consumers access gold. Let’s understand in detail what is digital gold and how it works.
Digital gold is a convenient and cost-effective way to accumulate the yellow metal for those who prefer it in physical form. Digital gold enables you to buy, sell and accumulate pure gold in fractions anytime and anywhere. Thus, even with a minuscule monetary investment of Re. 1, one can buy a certain quantity of the precious metal. Due to the convenience it provides to the buyer, digital gold is rapidly gaining traction amongst the investor community. In India, the option of investing in digital gold is being offered in collaboration with Augmont, MMTC-PAMP or both bodies.
Each gram bought by an investor is backed by an actual 24K physical gold, which can be easily sold back online at market-linked gold rate. Understandably, you do not have to worry about the plethora of concerns discussed above, like paying for its storage.
The 24k physical gold bought by you online, will be insured and kept safely with a reputed custodian on a consolidated basis. If you are concerned about its quality, rest assured that the purchased gold goes through numerous tests based on various quality parameters before they are accepted in the vault. Consequently, if you decide to sell a certain amount of gold from your account, the exact quantity will be removed from your vault.
Say goodbye to hefty making charges: Whenever we buy physical gold in the form of jewellery, we fret about the making charges which vary from one dealer to another, falling anywhere between 6% to 14%. This is included in your bill over and above the price of gold. Digital gold solves this problem. When you pay for digital gold, you are just paying the price of gold and nothing more.
Pay only for gold: When shopping for gold, a lot of us choose to buy it in the form of a jewellery. This implies that the price you ultimately pay for that jewellery, you are also paying for other amalgamated precious metals or stones. However, when you buy digital gold, you are investing in 24K gold only.
Encash your gold anytime, anywhere: As discussed previously, selling physical gold instantly in times of a financial emergency is easier said than done. And this makes investing in digital gold a prudent choice. It enables you to sell the amount of gold instantly online. After you sell a certain quantity of gold, the equivalent amount will be transferred to your registered bank account within a few hours.
No more expensive bank vaults: If you start investing in digital gold, you do not have to worry anymore about storing them in vaults, which is a needless financial obligation as banks offer this service only at a cost that’s accompanied by a registration fee as well. Your digital gold will be safe in a secure vault without you having to pay anything for the service.
Trade your gold hassle-free: If you want to buy gold so you can easily trade with it, buying digital gold is the better option for you. Trading of physical gold is time-consuming and arduous, especially when buying gold jewellery as we are often spoilt for choices. However, digital gold offers you the opportunity to freely trade in terms of your purchased digital gold anytime, anywhere.
You can easily buy digital gold online on Finserv MARKETS. Just 2 steps and you’re done! Here’s what you need to do –
Apart from buying and selling gold, you can even choose to redeem it and have your purchase delivered to your doorstep. However, do keep in mind that you can only redeem gold in grams.