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Why was digital gold created?

By Finserv MARKETS - Aug 2,2019
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Why was digital gold created?

Gold has long been an investment instrument of choice, owing to its ability to hedge risks brought about by inflation. Markets dealing in equity, other securities and even commodities are prone to risks owing to inflation, economic instability within and outside the country as well as political instability. However, the price of gold is influenced by sentiment rather than the principles of demand and supply which severely affect the commodities market, and thus the price of gold is not affected by market forces.

To invest in gold, people usually go to jewellers and buy gold coins or bars. They can even choose to have jewellery made in the design they desire, after paying for making charges which are separate from the price of the metal. Aside of being a great instrument of investment, gold is also hoarded by families and passed down from generation to generation as an heirloom.

The advent of digitalisation has made a significant impact on the world of investment as well. The requirement for seamless processes and transparent operations has led to the emergence of digital gold as a convenient tool for those looking to invest in gold in recent times. With Digital Gold, available on Finserv MARKETS, people can buy and sell gold in accordance with international market prices. Once you buy the gold, you can also hold onto it in an online account, which saves you from the hassles and costs of hoarding the gold in a locker. Hoarding the gold in your home also increases the risks of burglars breaking in, and causes mental stress which can be avoided by buying Digital Gold. Investing in gold now takes lesser time than ever and you can do it from wherever you are, without undergoing the hassle of going into a jeweller’s shop and having to wait your turn to complete the transaction. Digital Gold also saves you extra costs in terms of making charges.

Digital Gold has emerged as a solution to these problems. Additionally, while gold bars and coins when bought physically cost a significant amount of money, digital gold can be bought as fractions. This means that on portals like Finserv MARKETS, Digital Gold can be purchased for as little as Rs. 100. This is unthought of in times like now when the price for 10 gms of gold has touched Rs. 35,000 and looks set to increase.

Digital Gold is fast becoming popular, owing to the myriad advantages it offers in comparison to traditional modes of gold buying and selling. Aside of entirely removing the costs of storage and the mental stress that storing gold brings along, digital gold also helps in resale and is easier for liquidity reasons. Gold’s popularity as an investment option is partly because of the fact that it is much more liquid than equity shares or any debt instrument, but if you want to sell the gold jewellery you possess and obtain its complete resale value, you must return it to the dealer you bought it from.

Again, you can only get the entire resale value if you possess the original bill of purchase. Alternatively, if you sell it elsewhere, the buyer will melt down the jewellery which might lead to some wastage of the gold itself and then pay you the price. Digital Gold is a great solution to this because since the gold is stored virtually, it can be sold instantaneously. On Finserv MARKETS, you can sell the gold within 24 hours of buying it at no extra cost. Since the price of gold fluctuates on a daily basis, you can sell it for a lot more than you even bought it for. The money will also get deposited into your account without any hassles.

Many people are averse to the idea of buying Digital Gold as it does not appear to be a tangible asset. The primary attraction for people who invest in gold is that gold is a tangible asset, as compared to equity and other instruments of investment. However, Digital Gold is backed up by actual physical gold reserves held as bullion. This means, that despite not being physically visible or tangible to you, your Digital Gold reserve is actually a very safe investment choice.

Now that you know of the enormous potential that Digital Gold holds for the future, invest in gold on Finserv MARKETS and diversify your portfolio with Assay certified gold. The greatest benefit of investing in Digital Gold is the increased liquidity since you can sell it and immediately get cash in place of it, with only a few clicks, any time you are in urgent need for cash.

“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