With it's growing popularity, there are a lot of myths spreading around about Digital Gold. Let's burst some of those misconceptions today.
We all know Gold is an evergreen investment option. And it continues to be one of the most popular assets in our country.
Today, we have many options to invest in this yellow metal besides purchasing it in physical form (jewellery, coins or bars).
With the digital revolution on the rise, it has spread to the gold market in recent years, introducing us to: Digital Gold. A relatively new concept in India, but worth checking out.
What is Digital Gold?
Digital gold is a new age version of buying gold through online channels. It is a more convenient and cost effective alternative for those who want to buy gold.
For every gram of gold you buy, there is actual 24k gold stored in a locker in your name by one of the three gold banks in India - Augmont | MMTC - PAMP | SafeGold.
Investors can easily buy, sell or order physical gold to be delivered at home with a click of a button on the app. Also, there is no minimum limit to buy digital gold. You can start from as low as ₹1. Isn't that cool?
But with its growing popularity, there's also a sea of myths and misinformation floating in the air among the investors. As a result, they miss out on such a valuable investment in their investment portfolio.
So let's debunk some common myths about Digital Gold:
Myth 1: Gold is expensive and only the rich can afford it.
Not at all! The best part about investing in Digital Gold is that you can get it for as little as ₹1 through the Jar app.
Yes, it's true! Gold can be purchased for a cheap price and is budget-friendly. The previously unattainable precious metal, now widely available for everybody and everyone. We love it!
Myth 2: Investing in gold is too risky.
Every investment comes with some risk and has its own set of pros and cons. Gold is the same.
Infact, the risk component in Gold is lesser than other highly volatile investments like stocks and equities. Gold is an attractive investment, a valuable natural resource that is in constant demand.
It is a good hedge against inflation and risky investments.
Myth 3: Digital gold isn't real gold.
It is! When your gold balance hits 0.5gm, you can convert it to physical gold - coins or jewelery.
Feel free to withdraw or convert your savings into physical gold and delivered at your doorstep at any time through the Jar app.
Myth 4: Gold is a bad investment.
The truth is actually the opposite. Gold investments that are well-thought-out can pay off handsomely.
For real. Gold can be used as a hedge against falling stock prices as well as an investment alternative.
It protects against economic downturns and recessions. Gold rates have been increasing for the past 92 years.
Apart from having cultural importance in India, gold also has intrinsic value and has been a great asset with even better returns YoY.
In comparison to diamonds or platinum, which do not have the same resale value as gold, gold is always regarded as a strong investment alternative. Go for it!
Myth 5: Buying Gold is difficult and requires extensive documentation.
No, Digital gold is very simple and convenient. All you need is a phone, the Jar app, access to the internet, and a bank account or UPI account.
Ta-da! The gold is on its way to you in no time. On the Jar App, you can buy up to 30 grams of digital gold without KYC.
Only if your transaction exceeds Rs. 2 lakhs, you must supply your PAN card information.
Myth 6: There are further hidden costs and expensive storage fees.
Jar believes in transparency. You only trade pure gold when you invest through the Jar app, which is 24 carats of gold. The total amount you spend is invested only in gold.
You only have to pay 3% GST at the time of making the purchase. There are no hidden costs or storage fees.
All digital gold is kept in high-security vaults for free and is completely insured.
Myth 7: Online gold isn't pure gold.
On Jar, Digital gold is backed by 99.5% 24 karat purity. When you buy digital gold, you’re actually buying from mediators helping you access that gold from reputed companies like Augmont Gold Ltd, Digital Gold India Pvt. Ltd. - SafeGold, and MMTC-PAMP India Pvt. Ltd. So it's real, safe and pure.
Now that we're cleared the facts, see how good Digital Gold is as an investment? Don't miss out.
Infact, Jar is much more than a Digital Investment app. It's also an automated investment platform that helps you save your money without burning a hole in your pocket.
Start investing in Digital Gold through the Jar app right away!