If you are searching for an ideal gift for your loved ones in this festive season, then go for digital gold. Read on to know more
The festive season is on, and there couldn’t have been a better time to shower some love on our dear ones than this. We often think of gifting something useful to our near and dear ones. However, what could be more precious than gold when it comes to festivals?
One might think that we are kidding, considering the skyrocketing gold prices. But no, we are serious! We can make it happen with digital gold. How? Let’s find out.
About Digital Gold
Digital gold is nothing but gold in electronic form. Most people know about the physical gold we can buy from jewelrs. However, today, when everything is going digital, people are also shifting towards digital gold.
Digital gold is where we hold gold in the digital form by investing through online gold investment platforms. However, why digital gold when we can go for actual gold?
How Does Digital Gold Work?
Even in the case of digital gold investments, actual gold is involved. The digital gold that we purchase is stored in a vault. Here, we are investing in actual gold but virtually. Once we invest in digital gold, these companies purchase an equivalent amount of physical gold and store it in secured vaults.
Therefore, digital gold acts as a great investment avenue for investors. If digital gold has so much utility, why not use it to gift our loved ones this festive season?
Top Reasons to Gift Digital Gold
1) No Storage Cost
Digital gold does not involve any cost for storing the same. We hold our gold virtually in case of digital gold investments. So, here, we don’t need to worry about safety and security as our gold is lying safely in secured vaults.
However, in the case of physical gold, most people prefer storing it in bank lockers. This involves bank locker charges that directly reduce our returns.
2) No Making Charges
If we buy jewellery, jewellers will charge certain making charges for the same. It can range anywhere between 3% to as high as 25%. Now, we would not want to pay 25% more than the gold value, especially when we buy it for investment purposes.
Therefore, investing in digital gold without making charges is a good way out.
Purity is always a concern in the case of physical gold investments. Most people are worried about whether they get the desired purity as claimed by the jeweller. We can eliminate these worries if we go for digital gold, as investments are made in 24-carat 99.95% pure gold. Therefore, here, we don’t need to worry about the purity of our gold.
4) Actual Returns
Digital gold is nothing but gold invested in secured vaults. Therefore, it is an actual gold investment, and we will earn the same returns as we would have earned if we had invested in physical gold.
5) No Risk of Theft
There is always a fear that burglars can rob physical gold. The risk of robbery is why people keep their gold ornaments in bank lockers and pay hefty bank locker charges. However, there is no risk of theft in the case of digital gold.
Investing in digital gold is very convenient as compared to physical gold. In the case of physical gold, we need to visit the jeweller and decide on the coin, bullion, or jewellery. Further, if we want to sell our gold, we must revisit our jeweller.
However, in the case of digital gold, we can invest through our smartphones. We must open an account with a digital gold platform and begin investing. Even if we wish to sell our investments, we can do it in just a few clicks.
Investment in digital gold is akin to investment in physical gold. In case we urgently need funds and want to avail of a loan from a financial institution, then we can use our digital gold as collateral security. As this is a kind of secured loan, interest on such gold loans is lower than other unsecured loans.
8) No Minimum Investment
If we go for physical gold, we must purchase a minimum amount. Even 1 gram of gold will involve a cost of Rs. 5000. On the other hand, if we invest in digital gold, then investments can be made with as low as Rs. 10. Thus, we can gift any amount of gold that we wish without stressing about minimum investment.
9) Highly Liquid
As discussed earlier, digital gold is highly liquid. One can sell digital gold investments anytime in just a few clicks. Thus, digital gold can greatly help in times of financial uncertainties.
10) Portfolio Stability
Gold is a relatively stable investment than other avenues like equities or mutual funds. Further, it acts as an excellent hedge against inflation. Investors shift their investments from stock markets to relatively safer avenues like gold whenever the stock market takes a dip. Therefore, including gold in one’s portfolio can reduce overall risk.
Thus, we could not emphasize enough that digital gold is an ideal gifting option this festive season.
How to Gift Digital Gold?
While most people know how to invest in physical gold, it’s time we know that we can also gift digital gold. Jar allows us to conveniently invest and gift digital gold to our loved ones. Jar is a digital gold investment application that will enable us to invest in digital gold and automate our savings.
It also functions as a daily savings app that helps us adopt a disciplined approach toward savings and investments. With Jar, we can start investing in digital gold for as low as Rs. 10. So this festive season, make our loved ones happy by filling their gold jars with Jar!