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Second-hand gold is as good as new. Why?

By Finserv MARKETS - Aug 1,2019
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Second-hand gold is as good as new. Why?

Gold has been a preferred choice of Indian investors for decades now. It is equated with safety, liquidity and returns and is considered to beat inflation. However, the way Indians have been investing in this yellow metal is undergoing a change. Traditionally, when one thinks of purchasing gold, mostly as jewellery, much time and effort is spent selecting a piece of their choice. What if you could say bye-bye to your neighborhood shop and buy gold online without having to worry about quality, purity and safety? Sounds too good to be true?

As of March 2019, more than 80 million people had Digital gold accounts, a number which is double than the Demat accounts in India. No one had thought of such a meteoric rise when the first such account was launched back in 2012-13. If you buy gold the traditional way, you would have to pay many costs such as making charges, sellers and storage fee, as well as you would have to shell a lot of money. Online gold such as the one available on Finserv MARKETS not only eliminates these costs but also lets you transact for as low as Rs 100.

With the price of gold linked to live market prices, the price of digital gold is the same across the country, thus making transactions market-linked. There is no compromise on the quality of gold too. There is complete assurance of 24 karat gold which is 99.5% pure and assay certified. One can buy gold online is small amounts and start accumulating it, however, there is no limit on the amount one can sell or gift. Not only this, the gold is insured and not even a rupee needs to be paid for storage which is provided by a logistics partner of Finserv MARKETS.

The process of buying, selling and redeeming gold has never been so easy. Sign up on the customer portal or log in using your phone number if you are an existing customer. That’s it. You can start to buy gold either in grams or Rupees, make the payment and voila! Selling also requires a login, keying in the amount to be sold along with the bank account you want the money to be credited to and you are done. Both processes involve zero documentation. However, there are some rules one needs to adhere to when you buy gold online:

  1. Get your KYC done: Provide your name, registered mobile number and the pin code place where the purchase of digital gold is initiated. This is mandatory for cumulative transactions above Rs 50,000. For those above Rs 2 Lakh or more, you need to provide your PAN Card details.
  2. NRIs and minors: Neither minors nor NRIs can buy digital gold. If you are moving abroad, it is required that you sell or redeem the gold purchased online before leaving the country. NRIs can buy gold through the Stock Holding Corporation of India, known as GoldRush.
  3. Buying and selling gold: One can buy and sell gold on the same day from anywhere at live prices. There is a price locking period of 5 minutes for buying or selling gold online after which the price is updated.
  4. Taxation: Digital gold is taxed similar to physical gold in terms of classification of gains depending on its holding period.

Redemption of gold is also quite simple. Once you choose whether you want it as gold coins or bars and view the charges levied for the minting of coins, you need to confirm your delivery address and pay the coin minting and delivery charges. The amount of gold that you have redeemed (in grams) will be deducted from the gold that you have stored in your safety locker. It is successfully delivered to your registered address.

When you buy gold from Finserv MARKETS online, it is insured until it is safely handed over to you. They ensure total transparency and save you the worry of any hidden charges. Total gold recycled in India during the Q1 2019 stood at 16.1 tonnes, a rise of 14 per cent from a year ago. This is only expected to grow as the regulatory framework evolves. Just as the penetration of smartphones, the proliferation of Digital Gold remains to be seen in India, which currently is the world’s second-largest gold bar and coin market.

“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