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Can I invest in digital gold via my Demat account?

By Finserv MARKETS - Aug 9,2019
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Can I invest in digital gold via my Demat account

There is something powerful about the yellow metal called gold. It not only symbolizes wealth and prosperity but financial security. While some love to flaunt it, some quietly amass wealth with a gold accumulation plan (GAP). Indians especially love their gold because it’s firmly embroidered in the social, cultural and spiritual fabric of this country.

As gold makes headlines worldwide and getting pricier by the day, perhaps it’s the right time for the Indian household to invest in gold and protect their future with a safe investment option. Fortunately, the small investor has an amazing opportunity to do so today with digital gold investment.

If you have a Demat account with your bank to trade shares and have asked whether you can use it to invest in digital gold, we’ll provide you with an answer to that tricky question here. We will also discuss digital gold investment and what is a gold accumulation plan.

Can I invest in digital gold with a Demat account?

You don’t need a Demat account for digital gold investment. A Demat account is required for trading in gold ETFs. Even if you have a Demat account, investing in digital gold from that account doesn’t make sense because you have to pay brokerage fees.

On the other hand, buying digital gold online is as easy as a few clicks and there are no extra charges until you sell it or redeem physical gold from the account.

What is digital gold?

In simple words, digital gold is gold in electronic form. When you purchase digital gold, you are purchasing physical gold without taking possession of the same. Every unit of digital gold that a customer purchases is backed by 24k, 99.5% purity gold. The gold is securely stored in a vault and covered by insurance until the customer chooses to redeem his gold and take physical possession of the same. The customer is also free to sell the gold to meet his financial needs.

Digital gold investment is also called a gold accumulation plan because you can spend in small increments to accumulate gold and increase your wealth with a safe investment option. For instance, you can buy digital gold online on Finserv MARKETS by spending as low as Rs. 100.

Why should I invest in digital gold?

Quality assurance

Unless you are an expert, it’s hard to check out the authenticity of gold from a local jewellery store. You also don’t get to buy pure 24 karat gold from a jewellery store until you are buying gold ingots or coins. Most jewellery is made of 22 karat gold and impurities are added to give the required shape and design to the gold.

With digital gold, you don’t have to worry about the purity of gold. When you buy digital gold on Finserv MARKETS, you get 24K gold with 99.5% purity that is fully assay-certified.

No extra charges

If you are investing in gold jewellery as a safe investment option, you are possibly losing a lot of money. When you buy jewellery there are making charges involved as well as precious stones are used. Your money is not entirely invested in gold, therefore, you get lesser returns on your investment.

On the other hand in digital gold investment or gold accumulation plan there are no extra charges involved and the entire money is used on buying gold at the current market price.

Safe storage

Ensuring safe gold storage is one of the biggest concerns for people who invest in physical gold. Storing at home can be risky and opting for bank lockers is costly and there is no insurance protection or guarantee of safe storage.

With digital gold, customers don’t have to worry about storage until they plan to redeem the gold. The gold is held in secure vaults and covered by insurance until it safely delivered to the hands of the customer. When you buy digital gold on Finserv MARKETS, you don’t have to pay anything for storage, which is provided by logistics partner Brinks. Also, your digital gold investment is completely insured.

Easy to invest in gold

Gold is not only a safe investment option but a lucrative investment option today. In the past 1-year gold prices have increased by 16.06%.

Unlike physical gold, you don’t have to spend a fortune to take advantage of this price surge. You can invest in small installments and take advantage of a gold accumulation plan. The best part is that you don’t have to go to a store to buy digital gold, or provide any documentation, or go through long and tedious processes; you can buy gold online with just a few clicks from the comforts of your home.

With gold prices at a 50-year high and the ease and affordability of digital gold, every investor – small, medium or big – today has the opportunity to invest in a safe haven to counter and mitigate future economic and financial uncertainties. Gold has always remained a safe and secure investment instrument and stood the test of time to serve mankind. You can trust in your digital gold to sail you through troubled waters any day.

Finserv MARKETS, from the house of Bajaj Finserv, is an exclusive online supermarket for all your personal and financial needs. We understand that every individual is different and thus when you plan to achieve your life goals or shop for the gadget of your dreams, we believe in helping you Make it Happen in a few simple clicks. Simple and fast loan application processes, seamless, hassle-free claim-settlements, no cost EMIs, 4 hours product delivery and numerous other benefits. Loans, Insurance, Investment and an exclusive EMI store, all under one roof – anytime, anywhere!


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Bajaj Finserv Direct Limited ("BFDL") is primarily engaged in distribution of financial products and services through its digital platform (“Bajaj Finserv MARKETS”) and inter alia renders services of customer acquisition, providing preliminary credit support activities, fulfilment services and post-acquisition customer services to Banks, NBFCs, HFCs. BFDL is also a registered Corporate Agent (Composite) under valid IRDAI registration number: CA0551 valid till 10-Apr-2024 for solicitation and servicing of Insurance Products. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522