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Portfolio Management: 6 Reasons Why Digital Gold Can Bring Sustainable Savings

Team Jar
December 21, 2022
Portfolio Management: 6 Reasons Why Digital Gold Can Bring Sustainable Savings

Digital gold is one of the fastest-growing investment options in the Indian market, and here are 6 reasons why having digital gold in your portfolio can be the key to sustainable savings.

Gold is probably the oldest currency in existence; humans have been trading in gold for centuries, and if there is any universal currency that might be accepted in any corner of the world, it is gold.

Gold has a high value in all parts of the globe, and you can get a considerable amount of cash by trading on the shiny metal. 


Although gold is not a primary form of currency anymore, it still has a strong impact on the world economy, and its influence on the currencies is still strong.

Almost every country in the world holds a huge amount of gold reserves, and this gold is a guarantee to redeem the promises to pay cash note holders, depositors, and citizens of the country. 


Gold is one of those few investment options that stay stable even when the market is volatile, and throughout history, investors have bought large amounts of gold when experiencing a higher rate of inflation.

Time and time again, gold has withstood the forces of time and recession, and gold prices are often used to determine the value of the local currency. 


But why is gold considered to be the best investment option even in volatile markets, and why is digital gold capable of bringing sustainable savings? Why is it a good choice to consider adding digital gold portfolio management?

We will find the answers to these questions in this article. 


6 Reasons Why Digital Gold Can Bring Sustainable Savings


The only way to beat the ever-increasing inflation rate, and grow your money is by investing it.

Provided the current volatility of global markets, it’s of prime importance to invest your money in a safe and secure saving instrument. 


It's always a good decision to include gold in a portfolio as historically speaking, gold prices have always moved up.

Here are six reasons why digital gold portfolio management can bring sustainable savings. 


1. Investing in Digital Gold is Simple and Convenient

When compared to other investment options like the stock market, bonds, and cryptocurrency, investing in gold doesn't require you to have a a lot of knowledge beforehand.

Also, you can just walk into any jewelry store, and buy gold. With advancements in technology, buying gold has become even simpler, and today, all it takes is a few clicks.

It is one of the major reasons why digital gold portfolio management can bring major sustainable savings for the future. 


Indians especially have a long history of investing in gold, and it's evident by the fact that Indian households hold nearly 24,000 tonnes of gold.

Almost every Indian has bought gold at some point in their life, and everyone knows the value of gold, making it a highly viable investment option. 


2. High Liquid Value

A major advantage of digital gold portfolio management & having digital gold in the portfolio is the high liquid value of the shiny yellow metal.

Having a liquid asset in your portfolio gives you the freedom to convert your investments into liquid cash at your convenience. 


The market value of digital gold remains fairly constant across different platforms. You can sell any amount of digital gold in your portfolio, and the equivalent money will be credited into your bank account almost instantly.

The high liquid value of digital gold provides a sense of assurance in unforeseen circumstances. 


3. No Lower Limit on Investment

Unlike some investment options like real estate and the stock market, investing in digital gold does not come with a lower limit.

You can start investing in digital gold on platforms such as the Jar App for as low as 10 rupees. That makes it a great choice for people who do not have a huge investment budget. 

Additionally, numerous automated daily savings apps for digital gold portfolio management allow you to invest a particular sum of money into digital gold every day, every week, or every month at your convenience. 


Having digital gold in your portfolio is a great way to start daily savings, and the process is highly convenient thanks to platforms like the Jar App. 


4. Buying and Selling Digital Gold is Time Convenient

Another good reason why having digital gold for sustainable savings is how time convenient investing in digital gold is as the entire process hardly takes a few seconds. 

Suppose the gold prices are down, and you think it's a good time to invest in digital gold before the prices shoot up again.

You can use Jar App to buy digital gold with just a few clicks.

The same principle applies when the gold prices are currently high, and you want to sell a part of your gold portfolio, you can do it almost instantly before the gold prices go down again. 

Because investing in digital gold does not take up a lot of your time and efforts, it's essential for sustainable savings. 


5. Diversified Investment Options

Buying digital gold does not always mean buying golden coins, jewelry, or ornaments.

Digital gold offers you a lot of flexibility & diverse investment options as you can also have Gold Exchange Traded Funds or ETFs in your portfolio. 


You can earn attractive interest rates on your digital gold ETF investments.

Additionally, gold ETFs do not fall under the Securities Transactions Tax in India which means additional savings for you. 


6. Gold Investment Beats Inflation Rates

The compound annual growth rate of yellow metal in the past 50 years stands at about 10%, whereas the average inflation rate in India for the past 50 years is about 7.5%.

The interest rate earned on gold investments has always been higher than the inflation rate, which is the key to sustainable savings, especially in the long run. 


Final Thoughts

Gold in portfolio can be a key to sustainable savings, and possibly a better future for you & your loved ones.

Indians seem to realize this which is why they have been investing in gold for centuries, and with advancements in technology, more and more people are starting to invest in digital gold. 


Platforms like Jar are helping in the advancements of digital gold as an investment option. The platform offers you a convenient way to automate daily savings thanks to its digital gold investment application, a one-stop solution for all your digital gold requirements.