Gold is something that is deemed the highest form of investment and one of the most valuable belonging. For thousands of years, people have regarded this yellow metal as currency, ornament, value possession, etc.
Even in today’s modern world, where Gold is primarily used as ornaments, it is significantly important for personal finances.
It can be evident from the fact that India is the biggest gold consumer in the world. But, there are different types of gold that you can buy, one is physical and the second is Digital gold.
It is a more advanced and new-age gold investment you can make. In this article, we will discuss Digital Gold: Should I buy Digital Gold, How to Buy Digital Gold, etc.
But first, let’s find out what is digital Gold.
Table of Contents
What is Digital Gold?
Digital gold is virtual gold that you buy and invest in without having had to physically hold the gold. You can buy it online from various digital gold vendors and the investment can be as low as Rs.10/- and no upper limit of investment in the Digital Gold.
The gold that you’ll buy is 24K with 99.9% pure gold and there will be no making charges and other charges that could make the cost of gold high.
It is a secure method of investing in gold as the private agencies involved in digital gold put the gold in a secure vault.
Should I Buy Digital Gold?
Buying gold can be expensive and therefore, you would need a lot of money to buy significant gold however, with the digital gold, you can start as low as Rs.10/- for which you can get 0.1-gram gold.
The liquidity of this investment is high which means you can sell your digital gold whenever you want and you’ll get the funds immediately.
Now, you might think since it’s digital gold that you cannot touch and therefore it’s not real gold but, it is real. The digital gold that you purchase will be stored in the vendor’s vaults safe and secure and you can even buy physical gold based on your digital purchase.
Digital gold is sold by three entities offering Digital Gold-
- MMTC PAMP India Pvt Ltd.
- Augmont Goldtech Pvt Ltd.
- Digital Gold India Pvt Ltd. (Safe Gold)
These companies are licensed by the government to offer digital gold via various vendors. Whether it’s Paytm Gold, Groww, Jar, etc. vendors are mediators who connect these three entities with the customers.
How to Buy Digital Gold?
There are many vendors like Groww, Jar, Paytm Gold, etc. who sell digital gold, These companies are asset manager who buys and sells digital gold for you.
This service can be availed online via mobile apps. You can download any of the mobile apps on your device and get yourself registered. After registration, you’ll be able to invest money in your digital gold purchase.
Here, we are taking the example of a digital Gold manager Jar that offers Digital Gold India Pvt Ltd. (Safe Gold) service provider using which you can buy gold. The following are the step by step instructions using which you can register on Jar-
- Download & install the Jar: Save daily in the Digital gold app on your device using the Play Store and App Store
- Now, click on the start button followed by entering your phone number, and click on the click OTP button
- After verification of the OTP, you’ll have to provide your name, age, gender, etc.
- Now, you’ve successfully created an account on your Jar app
- You can invest funds easily by clicking on the buy button and using the UPI system to purchase Digital Gold
Yes, Digital gold is very safe and is backed by actual gold which makes it very reliable and also offers the benefit of growth.
The tax involved in the purchase of the digital gold is 3% GST which has to be paid moreover, you would have to pay other fees which include insurance fees, storage fees, etc. however, the price of this fee varies from vendor to vendor.
Any Indian Citizen more than 18 years of age can invest in the Digital Gold App.
Yes, Digital gold is highly liquidating in nature, you can sell the digital gold whenever you want using the app.
I’m Shiv Kumar, a graduate with a passion for finance, marketing, and technology. My journey into finance started with a desire to understand money management and investing.
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