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How is buying digital gold different from commodities trading?

By Finserv MARKETS - Aug 27,2019
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How is buying digital gold different from commodities trading

Trading in the commodities market involves buying and selling of goods such as agricultural harvest, food, energy and metals, among others. Commodities trading allows for diversification of the investment portfolio from beyond investing in equity and debt securities, since the commodities market typically moves in opposition to the equity market. Commodities trading is the oldest form of trading, with empires having traded in precious spices and other materials.

Gold as an investment is an important part of the commodities market. As a precious metal, the demand for gold is immense and it is further amplified by gold’s ability to act as a hedge against inflation. This is the reason that gold has been one of the most popular items to be traded on the commodities market for many years now. In India especially, gold is an asset that acts as an heirloom. It is purchased ahead of festive occasions and ceremonies with multiple festivals across the country being specifically dedicated to purchase of gold.

Online gold trading has emerged as a recent phenomenon in the commodities trading market. It does away with a lot of the labour associated with commodities trading, and makes the entire process of purchase of the yellow metal much easier, faster and more transparent. Digital gold can be purchased online, and buyers can keep account of their assets at any time from any place at all.

On Finserv MARKETS, Digital Gold can be purchased and sold according to the market rates prevailing at the moment. Having the entire process online spares customers the effort of keeping track of market prices and deciding on the best time to either purchase or sell gold. Online gold trading offers seamlessness to customers in terms of knowing at every moment how much gold they have and how much it is worth.

Read on to learn about how digital gold has changed the way in which gold could be purchased through commodities trading.

1. Real time market information on the go:

With digital gold, you can stay constantly updated on the market prices as they rise or dip. These will aid your decision making processes significantly as you can quickly take decisions on whether you need to sell your gold, or if you can purchase more gold. As gold is one commodity which will always ensure returns to investors; it is best to purchase gold when the market prices are low. If you purchase Digital Gold on Finserv MARKETS, you get access to an online portal that keeps you updated in real-time on not just your own gold stocks but also market prices at any point in time.

2. No expenses incurred in storage or transportation:

Gold as a commodity is expensive to store. Keeping it in the house gives rise to threats of burglary while renting out lockers incurs additional expenses. Online gold trading keeps prices low with your entire investment being diverted towards purchase of the metal itself. Your digital gold gets stored online in a vault at a nominal price, and you needn’t worry about its security.

3. Redeem at your own convenience:

Trading in physical gold is a much longer process as compared to buying digital gold. Gold as an investment is useful to hold onto, but making it into jewellery, which is the common practice in India, makes it an expensive process. With digital gold, you are free to save your gold online and only redeem it when the need arises. If you purchase Digital Gold on Finserv MARKETS, the gold you buy will be delivered to your address if you choose to redeem it. The gold will be delivered in the physical form in the form of gold coins or bars which can be redeemed according to your requirements.

4. Liquidity:

Commodities trading offers limited liquidity, since you will need to find sellers when you are in urgent need of cash to deal with any unexpected financial emergencies. This is where online gold trading is really useful. Gold as an investment has always been preferred owing to the high liquidity it offers, and digital gold is even more liquid. If you invest in digital gold, you can immediately sell off your gold and raise the funds you require to meet your cash crunch. There is no waiting time at all, since you can sell the gold with the click of a few buttons.

Commodities trading has always been a way to diverse the investment portfolio when the equity market is down. Digital gold has just made the process of trading in gold much easier as well as faster. Buying Digital Gold on Finserv MARKETS offers you several benefits over and above buying gold on the commodities market. For instance, you can buy digital gold for as little as Rs. 100. If you are buying large amounts of gold, you can also hold it in a vault and ensure its security. With Digital Gold purchased on Finserv MARKETS, you can also be assured that the gold you buy is 99.5% pure and Assay certified to be 24 karat gold.

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