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Here is how digital gold solves 3 drawbacks of physical gold

By Finserv MARKETS - Aug 26,2019
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Digital gold investment is steadily picking up pace in India with around 8 crore digital gold account holders. Digital gold in India is a relatively new concept but the number of digital gold accounts has already doubled that of demat accounts in just 5-6 years.

Uncertain economic conditions and the recent rally in gold prices have renewed interest in traditional and digital gold investment. However, not everyone has the financial capacity to go the traditional route in purchasing gold. That is where digital gold gives everyone, irrespective of their income, the opportunity to invest in gold in small increments. That is also the reason why digital gold in India is achieving enormous popularity.

Digital gold investment is also termed as gold accumulation plan because you can increase the amount of gold in your possession by making small investments. We need not repeat how gold is a symbol of wealth and prosperity in our country and how it’s intertwined with our cultural, social and religious fabric. Whether it’s a marriage, religious ceremony or an emergency loan, gold is a necessity as well as a life-saver in times of need.

But why invest in digital gold and how it scores over physical gold? Here are 3 reasons why.

How digital gold solves the 3 drawbacks of physical gold

No storage issues

Safe and cost-effective storage is a huge issue with physical gold; whether they are gold bars, jewellery or gold coins. When you buy physical gold, you have two storage options:

  1. You store it somewhere in your home.
  2. You store in a safety locker in a bank.

One of these options is risky and the other is costly. Unless, you are living in a fortress, the gold in your home is not safe. And if you store the gold in a bank locker, you need to pay a considerable amount of money in the long-term that varies from Rs. 1,000 – 8,000 a year. Moreover, the RBI has clearly stated that banks will not compensate if the contents of the locker are stolen or damaged in a natural calamity.

You don’t have to worry about storage problems with digital gold. When you buy digital gold in India, you are given a pledge that a proportionate amount of gold under prevailing market prices is kept securely in a vault in your account. You don’t have to redeem and take delivery of your digital gold unless you desire it.

For instance, when you buy digital gold available on Finserv MARKETS, you don’t have to pay a penny for storage which is provided by a professional logistics company. Moreover, the digital gold in your account is fully insured against theft or damage.

No unnecessary costs

Analyse the extra costs involved in buying jewellery for your wife or for your daughter’s marriage. You have to pay for making charges, gem stones and there are impurities added to give desired shape to the gold. You don’t get the right value for your money because your entire investment is not invested in gold.

Also, gold jewellery is mostly of 22 karat purity and there is no guarantee that the gold you are buying is pure if it’s without certification. Compare that with digital gold investment where your entire money is spent on acquiring 99.5% purity, assay certified, 24 karat gold. You get maximum value for your money as you steadily progress in your gold accumulation plan.

Easy to invest

If you buy physical gold, say a 24 karat gold coin of 1 gm, it will cost you anywhere between Rs. 3,500-4,000 at prevailing market rates. Comparatively, when you buy digital gold online at Finserv MARKETS, you can start your gold accumulation plan with as low as Rs. 100. Whether you want to accumulate gold for your daughter’s marriage or to gift your wife or use it as an investment tool, there is no burden on you to invest large sums. You can make small investments at whatever frequency you desire and take advantage of digital gold investment.

Digital gold is really a smart way to invest in gold – an asset that never goes down in value and serves as a safe haven in times of trouble. Also, digital gold is not riddled with the problem of easy liquidity that is typical with jewellery or physical gold. You can easily sell the digital gold from the platform you have purchased it and meet your financial needs while making a decent profit. 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