What is digital gold? What are the benefits of Digital Gold as an investment? How is it better than buying traditional gold?
Digital Gold refers to the process of buying and investing in gold virtually. You can do all of this online; there is no need to go to a jewelry store. It’s the more suitable way of buying gold.
Investors who want to sell or buy gold can do it without any problems with one click. The minimum cost of buying or selling gold can be as low as Rs 1.
Benefits of Investing in Digital Gold
- Safe storage: The best benefit is its hassle-free and secure storage, which can be guaranteed. The gold you buy will be stored in a secured vault.
- The minimum limit for buying or selling gold: There’s no limit on buying costs. The minimum cost can be as low as Rs 1. The person who buys the gold will have it registered under his name.
- Collateral: If you are looking to take out a loan, then you can keep the digital gold as collateral for the loan.
- Authenticity: Virtually all gold bought today is 24 karats, and that’s why it’s 99.99% pure. The chances of fraud are low.
- Easy exchange: Another advantage is that digital gold can be exchanged anywhere, anytime, for physical gold or coins.
- Gifts: It can be the perfect gift for someone’s wedding or birthday day. You can gift anyone the digital gold you brought without worrying about its safety and physical transfer.
Disadvantages of digital gold
- The price at which you have invested doesn’t increase. It doesn’t increase your invested money.
- There’s a maximum amount in which you can invest, which is Rs 2 lakh.
- Even though when buying digital gold, you don’t need to pay making charges, you still have to pay 3% GST with it.
- There is no regulation by SBI or SEBI.
Who should buy digital gold?
- Anyone who cannot buy physical gold or cannot invest large sums of money at once can choose digital gold.
- You can buy digital goods without worrying about their safety. You can buy digital gold in the Edufund app too. Link for the app (URL)
- You can buy digital gold from any other source too.
- Digital gold can be bought and sold anytime at market price without going to a jewelry shop.
- You can buy other types of digital gold, such as gold bonds or ETFs. This is the best way to invest in gold.
- Indians are in the second position in terms of buying gold. More than 100 million consumers own digital gold.
FAQ
Is investing in digital gold worth it?
Buying and storing digital gold makes it much easier, more useful, and more secure than buying physical gold
How long can I not sell my digital gold?
Five years.
Is there GST on digital gold?
There is a 3% GST on digital gold.
Digital gold can be a good option for those who want to start their investment journey but are not ready to invest too much. One of the best benefits of digital gold is the flexibility and convenience of buying and selling
