Gold has been a reliable investment option and a symbol of wealth since ages, getting passed on from mothers and grandmothers down to the younger generations. It is believed that all of the gold present in the earth’s crust has been mined; there is very little possibility of finding more reserves of this metal and hence it is deemed to be precious. All the gold available to us today is in circulation and hence there is no ‘store’ from which ‘new’ gold can be added into circulation. This has resulted in gold having tremendous store value and hence is considered very stable in terms of its returns.
Digital Gold is the new, and much more efficient iteration of storing this lustrous asset. This risk-free, storage-proof investment instrument is a perfect blend of both technology and the traditional importance Gold has.
This blog is meant to be Step-1 in easing your way into this investment avenue. So, how to finally start with Digital Gold, you ask? Let’s find out.
Before going any further, it’s important to cover this question. Digital gold is an online Gold alternative which enables you to hold gold virtually without owning a safe or bank locker. The seller keeps an equivalent weight of physical gold in a secure vault for each online purchase.
Digital gold is the perfect instrument to begin your investment journey. It is a great way to create robust long-term wealth. One can invest in fractions as low as INR 10 and there is no cap on your investment too.
|Criteria||Digital Gold||Gold Bonds||Gold ETFs||Physical Gold|
|Ease of Trading||Can be traded 24*7||Can only be traded once listed on the exchanges||Trading permitted only during market hours||Difficult to find genuines buyers|
|Physical Delivery||Avaliable||Not Available||Not Available||Usually used for personal consumption|
|Minimum Investment||As low as INR 10||As low as 1 unit of gold (roughly equal to 1 gram of gold)||Varies from ETF to ETF||Depends on the weight|
|Storage and Security||High as kept secured in a vault||Sovereign Guarantee||High||Varies with location|
In a time where investments are subject to market risks, the yellow metal has always emerged as a consistent performer. With wider adoption of digitalisation, digital gold stands a very strong chance to emerge as a powerful investment instrument.
Over the next few blogs, we will dive into the specifics of investing in digital gold - setting up your account, linking your bank account and finally placing your first order.
Backing for the physical gold is provided by the following players:
Yes, one can redeem his/her digital gold into physical form by requesting for physical delivery of the same. Do keep in mind that you would have to pay making charges for the same.
One has to pay 3% GST when placing the order to buy digital gold.