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Digital Gold: The Modern Yellow Metal. Latest Stats & Trends

April 21, 2023

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    Do you know about digital gold? You should! Read this article to know about the newest way to invest in the safest investment: gold.

    For centuries, human beings have been interested in a sparkling yellow metal called Gold. It has been considered a picture of reputation and security for people around the world.

    Many wars have taken place to own gold and as a consequence the importance of gold is strongly rooted in art works and the way of life of several nations. For Indians, shopping for gold is frequently associated with important occasions whether it’s weddings, or any other significant occasion.

    As instances changed, gold has converted its form from bars to coins. In today’s day and age, with the emergence of technology, there’s virtual gold, a modern-day form and shape and is referred to as The Modern Yellow Metal. 

    Digital gold is the present day manner of making an investment in gold without clearly having the metal in ownership physically.

    It’s recommended to new age buyers that if the gold needs to be bought only for investment purposes, then it makes sense to shop for digital gold over physical gold that is typically bought for ornamental purposes.

    What is Digital Gold?

    Simply put, digital gold is an instrument that lets you invest in pure gold but in digital form.

    It can be bought online by the buyers and then the seller stores an equivalent quantity of physical gold in insured vaults. The buyer can invest as small an amount as one rupee in buying digital gold as per his convenience.

    It’s also very easy to sell digital gold anytime at current market rates and if they want to exchange digital gold for physical gold, that can also be done with ease. There are also provisions to be able to use digital gold as collateral for online loans.

    How is it different from paper gold?

    There are a lot of advantages which are common across both digital gold as well as paper gold like gold ETFs and gold funds. But then there are certain benefits which digital gold enjoys over paper gold.

    Digital gold doesn’t attract any cost other than one time GST charge whereas gold ETFs bear recurring yearly charges. To buy or sell paper gold, a demat account is required whereas one doesn’t need a demat account in case of Digital gold. 

    Where can you buy Digital Gold?

    There are majorly three firms - MMTC PAMP, Augmont Goldtech and Digital Gold India which deal in digital gold in India.

    These entities have collaborated with companies like PhonePe, PayTM etc to be able to sell digital gold. Buyers can buy digital gold either from these platforms or can buy from the refiners directly or from jeweller brands as well who have started to offer digital gold lately.

    Alternatively, one can buy digital gold using an app like Jar where automatically your designated amount can go to savings in the form of digital gold. Also, it has a provision of automatically putting your spare change at the end of the day to buying digital gold.

    How safe is investing in Digital Gold?

    The refiners who actually sell digital gold either directly or through various platforms are the security custodians for the digital gold people buy. But the ownership belongs to the buyer at all times.

    The physical gold of the same value of the amount of digital gold you buy is stored in secured and insured vaults. With the increase in popularity of digital gold, its amount is also rising in vaults at a faster rate.

    Benefits of investing in the yellow metal - 

     

    1. You don’t need to be a financial expert to start saving with gold 

    As common people, we find it tricky to make the right investment decision because it needs specialised knowledge. Whether it is about investing in shares or mutual funds, it needs a certain amount of understanding about the finance sector.

    But investing in gold doesn’t require any such knowledge. Indians have been buying gold and trusting it for over more than a thousand years now.

    Moreover, digital gold can be bought with a simple tap on the phone with an app like Jar which makes investing in digital gold extremely simple. It allows users to buy 24K gold even for very small amounts as well.

    2. Savings in gold is as very little as Re.1

    Even though you're going through a troublesome time and don’t want to pause savings, savings apps like Jar will assist you keep investment in digital gold for as little as ₹10.

    You have got the facility to determine what quantity of money you would like to invest in gold in a day or week or month. 

    This quantity can lead to you accumulating a large amount of gold that may be a secure saving asset and can help you in future wealth creation.

    3. Digital gold has high liquidity 

    It’s crucial to have a part of your portfolio liquid so that emergencies can be well taken care of. A lot of assets do not have ease of converting those in cash. For example - a house can’t be sold easily in urgent need of cash.

    Similarly FDs, mutual funds can incur heavy charges if we break those during the lock tenure. Whereas, digital gold has very high liquidity and can be deposited in your bank account easily. 

    4. Gold is forever

    There are many asset classes which have a hidden threat of financial loss with them. This has ended up absolutely destroying the financial savings of investors. Whereas Gold is a solid and dependable asset class. You can be relaxed and assured that its price will appreciate over time, or at the very least, remain the same.

    Young investors are moving towards investment in digital gold flexibility, high liquidity, and simple exit choices the merchandise offers. In fact over 50% of the transactions done on Safegold are distributed by users between the age of 25-35.

    Digital gold is the new mine for the younger generation in building their investment portfolio. With the appearance of technology, there’s currently digital gold – a novel style of the valuable yellow metal, and it’s time we started deliberating that digital gold is a great cash alternative.