People have now taken the Gold investments to a new level with technology. People have now started investing in Gold digitally. During the Pandemic, the footwalk of physical stores reduced drastically and so was the case with Jewelry shops. But there was one Gold trader that saw an increase in sales drastically - Augmont Gold ltd, a digital Gold trader.
Historically we have been investing in Gold in the form of
1. Coins.
2. Jewelry.
3. Bullion.
Then came Gold bonds and mutual Funds.
During the pandemic, another form of Gold investment emerged, Digital Gold.
What is Digital Gold?
Digital gold is bought online and is stored in protected lockers by the seller on behalf of the buyer. It also helps to overcome issues such as keeping Gold secured in lockers or getting it stored in banks. You only require internet banking and you are good to invest in digital Gold.
How does It work?
Digital Gold requires you to pay from any wallet such As GPay, Paytm etc. Brokers also have the option to invest in Digital Gold.
At present, three companies in India offer digital Gold Loan:
1. Augmont Gold Ltd.
2. MMTC-PAMP India Pvt. Ltd
3. Digital Gold India Pvt/ Ltd brand- SafeGold
Apps like Google Pay, Phonepe etc. provide a platform to the digital gold trading companies for trading.
What happens?
Once you buy digital Gold, the company from whom you bought digital Gold, would purchase physical Gold and then store it in their vaults under your name.
How to trade in digital gold?
1. Visit platforms such as Groww, Paytm, G-Pay, etc.
2. Enter a quantity or amount in INR or grams – You can buy Digital Gold at the live market rate.
3. Select your payment method – After completing the KYC process, you will have many payment choices to choose from like card, wallet etc.
4. Your Gold is immediately put in a separate locker and your account is updated immediately and can be accessed anytime.
5. You can sell your Gold whenever you want on the platform itself, just like stocks.
6. In case you changed your mind and want to keep it as physical Gold at your home, you can ask for doorstep delivery of Gold in the form of coins or bullion. Delivery charges apply
Benefits of Investing in Digital Gold:
1. You can get the physical Gold delivered to your home.
2. You can invest a minimal sum of Rupee 1.
3. Digital Gold can be used as security for online loans.
4. Digital Gold is genuine and the purity is 24K 99.5% and 999.9 for SafeGold and MMTC PAMP respectively.
5. Your purchase is 100%.
6. safeYou can get digital Gold delivered in the form of gold jewellery, bullion or coins.
Disadvantages of Investing in Digital Gold:
1. The investment is limited to 2 lakhs on most platforms.
2. There is no government-run regulating body like RBI or SEBI that governs them.
3. Making charges are applied to the price of Gold.
4. Delivery charges are applied if the physical Gold is delivered.
5. In certain cases, companies only offer a limited period for storage, after which you either have to take physical delivery or sell the gold or auction it.
This never-ending cycle of increased debt burdens leading to a need for instant money always results in inflation. So during unpredictable times, Gold maintains its value and comes out as the winner! There are better alternatives to invest in gold such as Gold ETFs, Sovereign Gold Bonds etc. because gold should be a part of a long term portfolio. If you are looking for getting Gold loans check SBI gold loans, Muthoot Gold loans etc. for checking eligibility and schemes.
To check the EMI payouts you can use the Gold loan EMI calculator, check interest payments using the Gold loan interest rate calculator, check eligibility using the Gold loan eligibility calculator.
Also Read:- ARE BANKS ASKING TO PLEDGE GOLD FOR SAVING LOCKER RENT