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What are the Pros and Cons of Digital Gold?

By Finserv MARKETS - Aug 28,2019
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What are the pros and cons of digital gold

Buying gold for investment and collecting gold are two entirely different things. If you purchase gold online from large and reputable dealers, then you also get the option to liquidate the.

According to Surendra Mehta, National Secretary, India Bullion and Jewellers Association Ltd, people hold about 10-15 percent investment portfolio in gold. With so many ads going around that advocate buying online, it is crucial that you evaluate the premium amount which is asked over the current price of gold, and choose an online platform like Finserv MARKETS which can get you the best price at any point in time.

Why consider investing in gold

Online gold has become quite trendy with millennials and has turned out to be a popular investment measure. It has also seen price swings — on the up and down but has mostly stayed afloat compared to other investment options. However, the traditional, physical gold brings with it a bit of anxiety, with quality, safety, and authenticity being some of the top concerns for individuals who buy physical gold.

The option to buy gold online has brought with it the flexibility to have it purchased in small amounts. You also do not have to worry about the other factors as mentioned above that come with storing physical gold. On Finserv MARKETS, you have the option to buy, sell, and deliver gold — all of it with just a few taps — an effective way of having gold as an investment.

“Gold has been a traditional indicator of wealth. There is a cultural aspect to this. But as regards investment instrument too, it has always given stable return,” said Riaz Thingna, director, Grant Thornton Advisory to Mint.

Pros of buying gold online

One of the main factors why you should choose gold as an investment option is that it still has value even if the paper currency starts inflating. Local currencies tend to see much fluctuation against foreign currency. While government policies are made to withstand such economic burdens and keep the currency steady, not all of these methods are foolproof. Once the currency standards take a fall, the balance might be hard to achieve, which may result in a steady decrease in our purchasing power.

Gold, on the other hand, is a finite source of precious metal. If you have gold as an investment online, your financial scenario might be well stronger than someone who has put all of their trust in papers and bank.

Cons of investing in gold

One of the cons of buying gold is that it loses it value if the currency becomes completely unstable and people have to rely on physical trade mechanisms — such as the barter system — to survive. If that happens, then gold may lose its value altogether since it cannot be consumed. However, such a situation is only hypothetical, and considering the fact that gold cannot be truly created by us, and that there is only enough of it that can be mined and traded, it will continue to sustain its value over time.

One of the other factors that are associated with online gold is that it does not provide instant returns. You can only make money on it after you sell it. There is no sort of passive income attached to it. The value of it grows after a while. If you buy gold online, then the only option you have on making money on it is by selling it.


Online gold, despite all the traditional factors associated with it, has turned out to be a popular investment option. On Finserv MARKETS, you can buy gold online in a few simple and necessary steps. All you have to do is sign up to the customer portal by providing your mobile number, confirm your email and pin code, and start purchasing gold at its current market value — the live value of the gold will appear on the dashboard.

Selling the gold is easy too. You have to enter the amount of gold that you have to sell — it could be in grams of rupees. To enable the money to be credited to your bank account, you need to input your bank account details, and the transaction will be completed within minutes.

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