Why Invest in Gold?

In India, gold has been a part of family traditions since time immemorial. No Indian wedding is complete without gold ornaments and heirlooms. As a result, Indians are also huge buyers and sellers of gold. During festivals such as Akshay Tritiya or Diwali and for any auspicious ceremony, gold is extensively bought and used. There are several reasons why gold has emerged as such an important instrument for tool, over the decades. Here’s what you need to know before you invest in the yellow metal.

  • Long-term Value: Unlike paper currencies issued by most countries, gold has maintained its value steadfastly despite economic forces. Gold is a reliable instrument to invest in, since historical trends show that gold’s value is unlikely to fall. Also since gold’s price is dictated by demand and supply in the market, its value is bound to rise once supply runs out.

  • Hedge against Inflation: The movement of gold prices have traditionally been in reverse to those of the stock market. As a result, when the equity market experiences a drop, gold prices generally rise which make them an effective tool for investors. People choose to invest in gold for diversifying their portfolio since when the rest of the market is not performing, gold can be counted upon to show gains.

  • Protection against Geopolitical Instability: Gold is often called the “crisis commodity” because not only does it retain its value during times of economic instability, but also during geopolitical instability. When governments fall or crises occur in political institutions, gold prices often rise in response.

  • Reducing Supply: Gold is a metal that has to be mined and processed, before its sale is possible. A large part of the gold in circulation today is from the sales by central banks globally of their gold bullion vaults. However, production of gold from mines has dropped in recent years. As the supply of gold reduces, the scarcity is bound to lead to higher prices which means that gold can be expected to trade for much higher prices than it currently is.

Features of Digital Gold

Digital Gold is expected to revolutionise the manner gold has been traditionally purchased and sold by Indians. Here’s the reasons why the purchase and sale of virtual gold is transforming traditional investment patterns.

  • Lower investment costs leading to bigger corpus: Gold is usually invested in to accomplish long-term goals and it traditionally required some saving up of funds in advance to purchase gold from the neighbourhood jeweller’s. However, you can now purchase Digital Gold on Finserv MARKETS for as little as Rs. 100, which means your long-term goal is now much more achievable and you can build a substantial corpus with much lesser effort.

  • Higher Liquidity: Gold was always considered the ‘crisis commodity’ because it helps people generate cash easily in times of need. For physical gold, there are several restrictions involved including that gold purchased from one dealer cannot be sold to another. With Digital Gold though, you can sell instantly from your Customer Portal and have the money credited directly to your account. Since you have access to real-time market prices, it’s much easier to take informed decisions on when you should purchase or sell gold.

  • Transparent processing: Being able to buy and sell gold online gives the customer much more freedom and brings on a whole new level of convenience that was missing from traditional methods of trading in gold. While buying physical gold from the jewellers, customers also often end up paying more for the services of the jeweller including in the form of making charges; which add substantially to the cost of purchasing the gold. Buying Digital Gold on Finserv MARKETS allows investors to buy gold without the extra charges that get added onto these kinds of purchases. The transparent processing allows people to pay for only the quantity of gold they wish to purchase, while all other costs are eliminated.

  • Secure storage at no additional costs: Buying gold physically also results in additional hassles regarding its storage. Most investors would not want to store the precious metal at home, out of fear of burglaries or theft. As a result, most people rent out lockers for storing their gold which is an additional cost that can be avoided by buying Digital Gold on Finserv MARKETS where investors get access to free storage for five years without paying any additional costs.

  • Guaranteed purity: While buying gold traditionally, investors had to be careful to pick jewellers they knew to be trustworthy. However, by investing in Digital Gold on Finserv MARKETS, you are assured of 24K pure gold which is Assay certified. This ensures universality of your investment.

  • Quick conversion to physical gold: When you purchase Digital Gold, you have the option of converting it into physical gold which you can use to make jewellery, all at the click of a few buttons.

Buying, Selling & Redeeming Digital Gold

To buy, sell or redeem Digital Gold on Finserv MARKETS, you must register yourself on the Customer Portal by providing your name, mobile number and the PIN code of the place where you want to initiate your purchase. Once you are registered, you not only get access to real-time market prices for the yellow metal; but you can buy, sell and redeem gold in just a few clicks. Continue reading to learn how.

Buying Gold:

Step 1 - Select how much gold you want to buy, in grams or as INR.

Step 2 - Once directed to the payment gateway, make the purchase and the gold is yours!

Selling Gold:

Step 1 - Select the amount of gold you want to sell.

Step 2 - Enter your bank account details, to which money from the sale will be credited. That’s it!

Redeeming Digital Gold:

Step 1 - Decide whether you want to redeem your Digital Gold in the form of coins or bars. You can select multiple, as required.

Step 2 - Once you have selected the amount of gold you want to redeem, you will be asked to review the prices associated with minting of the gold and its delivery.

Step 3 - Confirm your address, at which the gold must be delivered.

Step 4 - You will be directed to the payment gateway, where you can pay for the charges that were previously shown to you.

The gold you have chosen to redeem will be deducted from your online account.

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