Our world has changed a lot after the Pandemic, so we did a small research on Gold and found these 16 surprising stats.
Gold has been a popular asset class in the United States for a long time, and it continues to be so today.
There are a variety of additional ways to invest in gold besides purchasing it in the form of bars or coins.
The digital revolution has seen a huge growth, which has spread to the gold market, and it has established a new investment form: digital gold. In India, digital gold is a relatively new notion.
Simply put, digital gold is a way to invest in actual gold. You may buy it online, and the merchant will store it in insured vaults on your behalf, exactly like conventional gold. As cheap as $1 may be found for 24 karat Hallmark gold.
Digital gold, in a nutshell, is 24K, pure gold that can be accessed via digital channels from a secure vault. It's easy to purchase, sell, and get your hands on a small amount of vaulted gold through platforms like SafeGold.
Gold has become more useful, accessible, and efficient as a result of this new technology.
On the other hand, physical gold is typically purchased as a status symbol rather than an investment.
Non-refundable expenses, such as manufacturing charges, storage costs, and so on, make it a burden rather than an asset.
Digitization and the way we purchase gold:
There’s a huge upturn in the way gold has been purchased. It’s now become digitally available to own it, making it simpler for anyone to own it.
In contrast to traditional gold transactions, digital gold offers the same level of security and simplicity as a web-based transaction.
Digital gold is considered a secure and cost-effective investment alternative. In other words, if you know exactly what kind of jewellery you want, go out and get some real gold.
Whether you want to use your gold as jewellery, gifts, investments, or loan collateral, digital gold is a great way to save and have total control over how your gold is used in the future.
Since the upsurge in digitization after the pandemic, digital gold has seen a lot of buyers, especially in India.
It’s made it much easier for them to access it from anywhere, without having to physically visit a store to complete the process.
How is digital gold generated?
Some of the most popular mobile wallets are Paytm, PhonePe, and Google Pay for investing in digital gold.
Digital gold investments may be made through brokers like HDFC Securities and Motilal Oswal.
There are now three firms in India offering digital gold:
- First, there is Augmont Gold Limited.
- MKS PAMP, a joint project between MMTC Ltd., a state-owned company, and a Swiss corporation - MKS PAMP.
- The SafeGold brand that belongs to Digital Gold India Pvt. Ltd.
It's not possible to use apps like Paytm or G-Pay to buy or sell metals like SafeGold or MMTC PAMP.
Thereafter, these trading businesses acquire and keep the corresponding quantity of gold under your identity in safe deposit boxes in secure vaults.
Interesting facts on Digital Gold:
Here are some interesting facts on digital gold:
- Convenience: Many mobile wallets, UPI applications, and banks, including PhonePe, Bajaj Finserv, MobiKwik, and others, allow customers to purchase digital gold.
- Standardisation: Good Delivery standards are adhered to by SafeGold, and all coins are assay confirmed by a government-licensed organisation. The purity of all coins and bars is independently verified to be 99.999% 24K gold.
- 24/7 availability: Customers may sell their gold for cash via their bank account, at a live 24/7 market-linked rate, by logging into their account.
- Smart safety: Each transaction's gold is already held in a secure vault with complete insurance, ensuring the safety of each transaction.
- Can be used as investment proof: A SIP or even a little investment in digital gold may be used as a flexible tool to meet a customer's financial needs.
- Easy delivery: A tamper-proof, insured box will be delivered to the user's door at any moment, allowing them to easily get their gold.
- Smart exchange: Digital gold may be exchanged for jewellery at jewellers directly by contacting them
- Can be transacted digitally: If you're looking for a way to show your loved ones how much you care, you may give them gold over Whatsapp.
- Online purchases are picking up: Only 13% of urban Indian investors purchased gold bars or coins online. There were only 20% of all investments purchased online, which was a lot lower than the other items.
- Growth since pandemic: Due to the current pandemic, digital gold has become even more popular, with a nearly 70% spike in purchases in the nation.
- Low investments: You can invest in digital gold with an amount that’s as low as Re.1!
- Despite India's gold-obsessed nature, the financial environment is gradually shifting from physical to digital. Gold ETF folios have risen eight-fold in the last three years, while the Indian government has launched 55 tranches of the Sovereign Gold Bond (SGB) programme since 2015.
- AMFI data shows that the number of gold ETF folios has increased from 3.1 lakh to 24.11 lakh from September 2018 and September 2021, which is a significant increase from the previous year. Gold ETF holdings increased by 132% from 15.1 metric tonnes to 35.1 metric tonnes during the same time period. One metric tonne is equal to 1,000 kilograms.
- The aggregate holdings of Indian gold ETFs totaling 35.1 metric tonnes are less than 1% of the worldwide gold ETF total of 3,592 metric tonnes.
- Gold ETFs will only account for 13.5 tonnes of the 446.3 tonnes of gold required by 2020. Demand for gold in 2020 was about 45.8 metric tonnes, which was just 10% of the overall demand in the country.
- India's gold import is dwarfed by the growth of digital gold assets. Gold mine output in 2020 was estimated by the US Geological Survey's Mineral Commodity Summary to be 3,200 metric tonnes, or around 75% of the entire supply. (Source)
The future - more than just an auspicious gift:
Digital gold is more than just an auspicious gift that Indians can own and use for the future.
What’s important is to understand that digital gold comes with a variety of benefits, which include it being a smart investment that can be accessed at any time.
It can’t be stolen from you, and can also be exchanged at any time without having to worry about a loss in value.
Overall, with independent checks, it means that digital gold is always safe and secure at all times.
Anyone may buy digital gold on a recognised platform, making the process easy, safe, and fast.
It’s easier to do it from home to purchase and sell digital gold in a matter of minutes and earn full value for it.
The following are some additional advantages of digital gold:
- Digital gold may be stored for free.
- When you purchase or sell digital gold, you'll get the current market price.
- Within minutes, you may buy or sell gold from the convenience of your own home.
- Digital gold investments start at just INR 100, making it an ideal wedding gift for your loved ones!
What is the best way to buy and sell digital gold?
You begin by going to one of the many platforms that provide digital gold investments, such as HDFC Securities, Groww, Paytm, G-Pay, Motilal Oswal, etc.
Following these steps is how you get started on their platform:
- You can invest in gold at a predetermined price, or you can buy it per weight at the current market rate.
- Pick your payment method when you have completed the KYC procedure, such as a bank, card, or wallet — There are many alternatives to choose from.
- Keep your gold in a safe deposit box or vault – The information in your account is always up to date and may be viewed at any time.
You have the option to sell your gold electronically to the platform at any time you choose.
For those who don't want to sell their gold, they can request that it be delivered to their door in the shape of coins or bullion. Please be aware that there will be a delivery cost.
So, with these pointers in mind, it becomes easier for you to smartly invest in digital gold. Put in the right time and effort to invest, and you’ll soon notice amazing returns!
Traditionalists are also being encouraged by millennials in the financial management industry. The elder generations are following suit as they see the benefits that digital investments provide.
The move is mostly from physical to digital wealth management methods, with speed, customer experience, openness, and safety as the primary focal areas for the shift.
Another thing that COVID-19 taught us is the significance of having a safe nest of money to fall back on should things go sour in the economy, preferably stashed away in a liquid, reliable, and inflation-proof asset.
This is one of the numerous lessons we learned from COVID-19. During the lockdown, gold prices rose as a sign of the growing desire for safe assets. As the typical investor's age rises, so will the types of investments they select.
If you're a digital native seeking for a reliable instrument in a familiar digital environment, investing in digital gold may be a wise and safe choice.
The future of digital gold will continue to be seen as a bright one. Investing in gold as a safe place and auspicious asset hasn't changed much in India, despite the fact that methods of obtaining and storing it have evolved over time.