TomorrowMakers

Investing in digital gold is a viable investment option, but knowing the key points of digital gold investment is essential.

Invest In Digital Gold
  • Digital gold is bought virtually and stored in the vault securely.
  • Storing digital gold can be a good option for investors. It can be conveniently stored, sold, or redeemed. 
  • SEBI has stopped some brokers from selling digital gold to safeguard the investor’s investment.

One popular way to invest in gold is by buying a digital gold investment. It is convenient to store gold in digital form, but it is to be noted that digital gold falls in the regulatory grey zone. It does not come under the purview of financial sector regulators. 

What is digital gold?

Digital gold is an online product that allows you to buy and hold gold virtually without any locker. The seller securely keeps the equivalent weighted physical gold in the vault for every online purchase. Several digital gold platforms offer liquid gold investments and quality products.

Also Read: Why gold is a good option for investment.

How to buy digital gold?     

Investors can invest in digital gold via platforms like Phonepe, Gpay, Paytm, etc. These gold platforms enable you to buy small amounts of gold and allow you to sell or convert digital gold into physical gold whenever needed. In India, three companies store gold in their vaults - Augmont Goldtech, MMTC-PAMP, and Digital Gold India.

What are the advantages of digital gold?

Following are the advantages of investing in digital gold.

  • Storage facility: You don’t have to pay rent for the bank lockers; no insurance coverage is needed.

  • Convenient investment: You can only start investing in gold at Rs 100 and accumulate wealth over time.

  • Price uniformity: The digital gold price is the same across the country, while the physical gold price varies from city to city.

  • Instant liquidity: You can quickly sell or redeem your digital gold and instantly transfer your money into your account. 

  • Collateral: Digital gold can be used as collateral to take loans. 

What happens when the digital gold platform stops functioning?

Investors must know all about the digital gold platform before investing. If you invest in any digital gold company and it gets dissolved or goes out of business, you will probably lose access to your investment. This is because the company usually stores purchases on their server. And when its server breaks down, your digital assets become inaccessible. 

Therefore, investors must research and compare companies' financial stability before investing. It would be best if you went for the centrally authorised companies that provide quality assurance, tax invoices for transparency, buying & selling prices, and minimum risk to your investment.

Also ReadEverything about low-risk investment options and sovereign gold bonds.

The digital gold industry still needs a regulatory authority for its functioning. SEBI has stopped many bar stock brokers from selling digital gold. Thus, investors should know all about digital gold and its platforms before learning how to invest.

Find the latest articles on investing here

Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.

  • Digital gold is bought virtually and stored in the vault securely.
  • Storing digital gold can be a good option for investors. It can be conveniently stored, sold, or redeemed. 
  • SEBI has stopped some brokers from selling digital gold to safeguard the investor’s investment.

One popular way to invest in gold is by buying a digital gold investment. It is convenient to store gold in digital form, but it is to be noted that digital gold falls in the regulatory grey zone. It does not come under the purview of financial sector regulators. 

What is digital gold?

Digital gold is an online product that allows you to buy and hold gold virtually without any locker. The seller securely keeps the equivalent weighted physical gold in the vault for every online purchase. Several digital gold platforms offer liquid gold investments and quality products.

Also Read: Why gold is a good option for investment.

How to buy digital gold?     

Investors can invest in digital gold via platforms like Phonepe, Gpay, Paytm, etc. These gold platforms enable you to buy small amounts of gold and allow you to sell or convert digital gold into physical gold whenever needed. In India, three companies store gold in their vaults - Augmont Goldtech, MMTC-PAMP, and Digital Gold India.

What are the advantages of digital gold?

Following are the advantages of investing in digital gold.

  • Storage facility: You don’t have to pay rent for the bank lockers; no insurance coverage is needed.

  • Convenient investment: You can only start investing in gold at Rs 100 and accumulate wealth over time.

  • Price uniformity: The digital gold price is the same across the country, while the physical gold price varies from city to city.

  • Instant liquidity: You can quickly sell or redeem your digital gold and instantly transfer your money into your account. 

  • Collateral: Digital gold can be used as collateral to take loans. 

What happens when the digital gold platform stops functioning?

Investors must know all about the digital gold platform before investing. If you invest in any digital gold company and it gets dissolved or goes out of business, you will probably lose access to your investment. This is because the company usually stores purchases on their server. And when its server breaks down, your digital assets become inaccessible. 

Therefore, investors must research and compare companies' financial stability before investing. It would be best if you went for the centrally authorised companies that provide quality assurance, tax invoices for transparency, buying & selling prices, and minimum risk to your investment.

Also ReadEverything about low-risk investment options and sovereign gold bonds.

The digital gold industry still needs a regulatory authority for its functioning. SEBI has stopped many bar stock brokers from selling digital gold. Thus, investors should know all about digital gold and its platforms before learning how to invest.

Find the latest articles on investing here

Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.