In Indian homes, gold has long represented security and prosperity. However, waiting in line or keeping physical gold at home seems burdensome in today’s fast-paced digital world.
Presenting digital gold, a cutting-edge method of purchasing 24K gold with a few phone taps. Digital gold provides the flexibility, purity, and security you require, without the inconvenience of lockers or middlemen, whether you’re starting small, diversifying your portfolio, or saving for a wedding. Is it worth your money, though?
Let’s get insight into it and assist you in determining if digital gold is worthy of being included in your investment portfolio.
What is Digital Gold?
Digital gold is a new way of buying gold online, without physically having the metal in hand. When you buy digital gold, you are buying a specified quantity of 24-karat (99.9%) gold at prevailing market rates. The gold is secured in professionally managed vaults by the seller on your behalf, and you are given a digital certificate as proof of ownership.
Such an investment has been popular among Indian retail investors due to its easy accessibility and low entry cost.
How to buy digital gold?
- You buy gold on websites like PhonePe, Paytm, Google Pay, Groww, or on websites like MMTC-PAMP and Augmont.
- The platform fixes the price of gold at the point of your purchase.
- An equivalent amount of physical gold is kept in an insured and audited vault.
- You may opt to:
- Store it digitally instead.
- Sell it whenever you want online.
- Melt it into bars or coins and get them shipped to you.
Example: Assuming gold costs ₹6,000 per gram, and you are willing to invest ₹3,000. You purchase 0.5 grams of digital gold on your selected platform. The gold is credited to your account and kept in a certified vault automatically. A digital certificate is issued with a date, amount, and gold price. After a few months, when the price is ₹6,500 per gram, you can sell your gold for ₹3,250 and make a profit.
Pros and Cons of Digital Gold
Pros of Digital Gold
- Start Small and Simple: The minimum investment you can make is ₹10, so it is easy for students, new investors, or beginners to begin investing and own gold, even if it’s a part of it.
- No Storage Worries: That gold you buy is stored in safe, insured vaults by the supplier—no lockers, no theft, no extra hassle.
- Buy or Sell Anytime: Digital gold is open 24/7 on options such as PhonePe, Paytm, and Google Pay. You don’t need to wait for markets to open.
- Assured Purity: You are buying 24-karat (99.9%) certified pure gold, which is assured by reputed sellers like MMTC-PAMP and Augmont.
Cons of Digital Gold
- Not Regulated by SEBI: As opposed to mutual funds or stocks, digital gold is not yet regulated by SEBI, which can be a worry for old-school investors.
- No Returns Like Interest: Gold doesn’t generate income—no dividends, no interest. You only get paid if the price increases and you decide to sell it.
- Long-Term Storage Fees: Most websites provide 5 years’ free storage. Additional storage fees may be charged if you do redeem or sell.
- Price Volatility: Gold prices may change daily based on worldwide economic occurrences, so short-term profits are not assured.
Is Digital Gold investment worth it?
Digital gold is becoming popular as an easy and new way of owning 24-karat gold without necessarily resorting to the use of a locker or a trip to the jeweler. Investing can start at the rate of ₹10 using apps like Paytm, PhonePe, and Google Pay.
What’s appealing about digital gold is its versatility. You can sell or purchase whenever you please, watch real-time prices, and even convert your holdings into physical gold for delivery. It’s fully backed by physical gold stored in insured vaults, so investors don’t have to worry about a thing.
Who Should Invest:
- New investors wanting to invest in the gold market with minimal capital.
- Tech-savvy investors who value convenience over going to jewellery shops.
- Those who want to purchase gold for future occasions (such as weddings) without storage risks.
However, unlike stocks or mutual funds, digital gold does not deliver interest or dividends; returns are only by way of price appreciation. Experts suggest that gold exposure should be limited to 5–10% of your portfolio to ensure diversification.
Bottomline
Today, with the age of technology, gold investment is not about owning big bars anymore; it’s about smart clicks, safe vaults, and stable value. Digital gold is a tried-and-tested asset with the convenience of online investing. It allows you to purchase, sell, and hold pure 24K gold anywhere, anytime, without worrying about purity, safety, or storage. Keep it as a part of your portfolio to secure long-term profits.
Enjoy the age-old financial security of gold but digitally.
Written by: Tanya Kumari
