Investing in gold has been a traditional choice for many in India, especially during festivals and weddings.
However, a modern shift in investment preferences has led to the rising popularity of digital gold. Here’s everything you need to know about it.
What is Digital Gold?
Digital gold is a contemporary way of purchasing gold online. This form of investment allows individuals to buy gold in electronic formats such as ETFs (Exchange-Traded Funds) and Gold Savings Funds.
Notably, investing in digital gold can commence with as little as Re 1, making it a highly accessible option for a wide range of investors.
Notable providers in India include MMTC-PAMP India Pvt. Ltd, Augmont Gold Ltd, Digital Gold India Pvt Ltd, and Airtel Payments Bank in partnership with SafeGold.
Who Can Invest in Digital Gold?
Any individual residing in India can invest in digital gold. According to Axis Bank’s website, a person must possess a savings or current account to buy digital gold.
Who Cannot Invest in Digital Gold in India?
Digital gold is not accessible to minor account holders and NRI customers without an NRO (Non-Resident Ordinary) account.
Benefits of Investing in Digital Gold:
- Low Investment Threshold: Digital gold allows investors to start with as little as Rs 1, enabling a broad spectrum of individuals to participate in gold investment.
- Flexibility in Selling: Investors can buy and sell digital gold based on real-time market prices, providing flexibility and convenience.
- Conversion Options: Digital gold can be converted into physical gold, such as coins or bars, offering tangible assets for investors.
- Secure Storage: The gold purchased digitally is stored in insured and secured vaults, and investors are not charged for this service.
- Collateral for Online Loans: Investors can use their digital gold holdings as collateral for online loans, leveraging their investment for financial needs.
- Real-Time Market Updates: Investors receive instant updates on gold prices, empowering them to make informed decisions regarding buying or selling based on market dynamics.
As the trend of digital gold investment gains momentum, it presents a secure, flexible, and accessible avenue for individuals looking to diversify their investment portfolio with the timeless appeal of gold.