Why Should You Consider Investing in Digital Gold


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    With the unavailability of physical gold due to high demand, more and more people are investing in digital gold. It has been gaining tremendous popularity among young investors. Much of its popularity stems from the fact that is safe, convenient, and flexible. Unlike physical gold, you do not have to visit a physical location to invest in digital gold. You are guaranteed 24k gold at the current market rate, and you can redeem the entire gold amount in the future. 

    So, how does digital gold investment work?

    Before making any investment in digital gold, it is imperative to know how it works. Here are the top things to know

    • It allows buying digital gold for as low as INR 100. It means that you do not need to have a large investment amount to buy digital gold. 
    • You will have to buy the yellow metal based on its weight or the specific amount of cash you wish to dispense. 
    • While making any investment in digital gold, you will need to buy a minimum of 1 gram of gold. 
    • The gold purchased is stored in a secured vault under the investor’s name. The storage period varies across different companies. 
    • It allows you to redeem the gold by obtaining liquid cash or getting physical gold coins or bars. 

    Reasons to invest in digital gold in India

    It is one of the safest and easiest wealth-creating opportunities. You have access to 24k gold at the best market rate. Here are some of the reasons to invest in digital gold

    • Unlike physical gold, there is no restriction by the gold-selling company on how much you can invest in digital gold. You can start your investment journey with the amount you can afford. 
    • The best part about digital gold is that you are guaranteed to get the best quality gold. For instance, if you want to invest in 24k gold, you will get 24k gold only.  
    • If you wish to redeem your digital gold into cash, physical gold coins, or bars, you can do so without any problem.  
    • Another benefit of digital gold is that you can use it to secure loans from financial institutions. However, the loan amount depends on the value of the gold stored in a secured vault. It is worth noting that if you do not pay the loan on time, the lender has the legal right to take your gold to recover the loan amount with interest. 
    • There is no need to take measures to ensure the safety and security of digital gold. Unlike physical gold, it is not subject to theft or loss. The digital gold is stored in a secured vault verified by an independent trustee. 
    • It eagles you to keep a record of your transactions. If there are any doubts concerning past transactions, you always have the option to check them up on the mobile application. 
    • It allows you to balance or hedge your investment portfolio to reduce risk concentration.  
    • All digital gold platforms are linked with real-time market rates. So, any changes in the online gold rates are immediately reflected in the digital gold apps, allowing you to take benefit of the latest gold rates. 
    • After investing in digital gold, the seller allows you to keep your gold in a secured vault for up to five years without incurring any charges. However, if you keep your gold beyond the said period, you will need to incur storage costs. 

    In short 

    Investing in digital gold is the best way to earn some extra cash. Also, you can use your online gold as collateral to secure loans in the future to address a cash crunch.