{"id":13154,"date":"2023-06-27T11:11:46","date_gmt":"2023-06-27T05:41:46","guid":{"rendered":"https:\/\/www.tickertape.in\/blog\/?p=13154"},"modified":"2023-06-27T12:49:32","modified_gmt":"2023-06-27T07:19:32","slug":"why-consider-buying-digital-gold-or-is-digital-gold-a-good-investment","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/blog\/why-consider-buying-digital-gold-or-is-digital-gold-a-good-investment\/","title":{"rendered":"Is Digital Gold a Good Investment?"},"content":{"rendered":"\n<p>For centuries, <a href=\"https:\/\/www.tickertape.in\/blog\/the-golden-behaviour-during-crisis\/\">gold<\/a> has held its position as a reliable asset. It has been one of the most safe havens for preserving wealth for many Indians. However, the traditional method of investing in physical gold has its limitations, like the complexities of purchasing, storing, ensuring its safety, and insuring the precious metal. Fortunately, with the advancement of technology, the economy has created an alternative to physical gold, referred to as &#8211; Digital Gold. But the question that arises now is &#8211; &#8216;Is digital gold a good investment?&#8217; and if it is as sustainable as physical gold? In this article, let&#8217;s understand what digital gold is, its benefits, risks, and if it is a safe investment.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/blog\/why-consider-buying-digital-gold-or-is-digital-gold-a-good-investment\/#What-is-digital-gold\" title=\"What is digital gold?\">What is digital gold?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/blog\/why-consider-buying-digital-gold-or-is-digital-gold-a-good-investment\/#Uncertainties-around-physical-gold\" title=\"Uncertainties around physical gold&nbsp;\">Uncertainties around physical gold&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/blog\/why-consider-buying-digital-gold-or-is-digital-gold-a-good-investment\/#Is-digital-gold-a-good-investment\" title=\"Is digital gold a good investment?\">Is digital gold a good investment?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tickertape.in\/blog\/why-consider-buying-digital-gold-or-is-digital-gold-a-good-investment\/#Benefits-of-digital-gold\" title=\"Benefits of digital gold\">Benefits of digital gold<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tickertape.in\/blog\/why-consider-buying-digital-gold-or-is-digital-gold-a-good-investment\/#Risks-associated-with-digital-gold\" title=\"Risks associated with digital gold\">Risks associated with digital gold<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.tickertape.in\/blog\/why-consider-buying-digital-gold-or-is-digital-gold-a-good-investment\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.tickertape.in\/blog\/why-consider-buying-digital-gold-or-is-digital-gold-a-good-investment\/#FAQs\" title=\"FAQs\">FAQs<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What-is-digital-gold\"><\/span>What is digital gold?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Digital gold is an online alternative to physical gold. It is the equivalent amount of gold that you would get if you purchased it offline. Digital gold is securely stored in an insured vault, and you always have the flexibility to sell any portion of it at market rates.&nbsp;<\/p>\n\n\n\n<p>One of the advantages that make digital gold popular is that you can start investing in it for as low as Re. 1. Moreover, all the digital gold is 24K and government certified. Hence, it ensures purity and minimises the risk of fraud.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Uncertainties-around-physical-gold\"><\/span>Uncertainties around physical gold&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The traditional gold purchase process is outdated and has several drawbacks. Here are a few of them.<\/p>\n\n\n\n<ul><li>The investment amount required to buy gold ornaments, coins or bars is usually high.&nbsp;<\/li><li>Ensuring the safety of the purchased gold is often challenging.&nbsp;<\/li><li>The quality of the gold varies. There is authorised hallmarked and non-authorised gold available in the market. A seller can give you low-quality gold and charge you a higher market rate. This makes you vulnerable to fraud.<\/li><li>There are various additional charges, especially if you are purchasing ornaments.&nbsp;<\/li><\/ul>\n\n\n\n<p>The solution to all these problems is digital gold.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Is-digital-gold-a-good-investment\"><\/span>Is digital gold a good investment?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Does the fact that digital gold resolves the problem that occurs with physical gold make it a good investment? Let&#8217;s find out.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Benefits-of-digital-gold\"><\/span>Benefits of digital gold<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>Secure Storage: <\/strong>The company stores Digital gold in highly secure vaults. It eliminates your worry about theft or loss. Additionally, you save the locker charges you might need for physical gold.&nbsp;&nbsp;<\/p>\n\n\n\n<p><strong>No Lower Investment Limit: <\/strong>There is no lower limit on investment in digital gold. You can <a href=\"https:\/\/www.tickertape.in\/blog\/why-should-you-prioritise-investing\/\">invest<\/a> any amount, even as low as Re. 1.&nbsp;<\/p>\n\n\n\n<p><strong>Use as Collateral: <\/strong>Digital gold can be used as collateral for loans. Lenders accept it as collateral due to its 24K purity and secure storage. This eliminates the hassle of traditional collateral paperwork and reduces the chances of loan rejection.<\/p>\n\n\n\n<p><strong>Ease of Exchange:<\/strong> You can exchange digital gold for physical gold. Hence, digital gold offers the flexibility of exchange and provides the option of having physical gold delivered to the doorstep.<\/p>\n\n\n\n<p><strong>Genuineness: <\/strong>Digital gold is 24K and comes with 99.99% purity. Buyers can trust the authenticity and purity of the gold, as it is certified. The chances of fraud are significantly reduced, ensuring that purchasers receive the total value of their investment.<\/p>\n\n\n\n<p>In addition to these benefits, digital gold offers the advantage of no storage costs, real-time market prices for buying and selling, the convenience of purchasing or selling from home, and the option to gift digital gold for special occasions like weddings.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Risks-associated-with-digital-gold\"><\/span>Risks associated with digital gold<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Below-mentioned are four major risks associated with investing in digital gold.<\/p>\n\n\n\n<p><strong>No regulatory body:<\/strong> There are no regulatory bodies governing trading rules and regulations for digital gold. This is one of the major drawbacks of digital gold that creates grey areas that can be exploited by amoral individuals within the ecosystem, posing a risk to investors.<\/p>\n\n\n\n<p><strong>Storage time limit:<\/strong> An equivalent of digital gold is stored in secure and insured vaults after the purchase. However, certain platforms\/sellers put a time limit on this storage. After the expiration, you must withdraw or sell the gold. It could disrupt your long-term investment strategies.<\/p>\n\n\n\n<p><strong>Upper limit of investment:<\/strong> Digital gold investment often comes with an upper limit. Currently, most platforms have set a maximum investment limit of Rs. 2 lakhs. It limits your options for making significant investments in digital gold and earns potential returns.<\/p>\n\n\n\n<p><strong>Lack of Physical Possession and limited liquidity:<\/strong> In case of emergencies, utilising the physical gold via collateral or selling is one of the safest ways. But with digital gold, you do not have direct possession of the actual gold, making it challenging to access and utilise it in emergencies. The liquidity of the digital gold market can fluctuate, impacting the ease and speed of converting it into physical gold or cash.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Whether digital gold is a good investment depends on individual circumstances. While it offers advantages like secure storage and ease of exchange, there are risks, such as regulatory limitations and <a href=\"https:\/\/www.tickertape.in\/blog\/strategies-to-tackle-volatility\/\">market volatility<\/a>. Consider factors such as investment goals, risk tolerance, and research that are crucial in determining your suitability with digital gold. Seeking professional advice and diversifying investments are also important. Finally, you must carefully assess the potential benefits and risks before deciding if digital gold suits your requirements.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs\"><\/span>FAQs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>How to buy digital gold?<\/strong><\/p>\n\n\n\n<p>You can invest in digital gold via e-wallets like <a href=\"https:\/\/www.tickertape.in\/blog\/paytm-payment-bank-down-13-rbi-banned-adding-new-customers\/\">Paytm<\/a>, Google Pay, and PhonePe. Apart from e-wallets, brokers also offer digital gold purchase options.&nbsp;<\/p>\n\n\n\n<p><strong>Who sells digital gold in India?<\/strong><\/p>\n\n\n\n<p>In India, three companies offer investment in digital gold:<\/p>\n\n\n\n<ul><li>MMTC PAMP India Pvt. Ltd.&nbsp;<\/li><li>Augmont Goldtech Ltd.&nbsp;<\/li><li>Digital Gold India Pvt. Ltd. (SafeGold)<\/li><\/ul>\n\n\n\n<p>These entities have the license to sell gold online in India.<\/p>\n\n\n\n<p><strong>How is digital gold stored?<\/strong><\/p>\n\n\n\n<p>When you buy digital gold, it is kept safely in a vault on your behalf at the merchant&#8217;s end. At this point, there are no charges for it. Later, you can order the gold to be delivered to you or sell it.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Digital gold is a buzzing investment opportunity these days. But the question is &#8211; \u2018Is digital gold a good investment?\u2019 Let\u2019s find out.<\/p>\n","protected":false},"author":90,"featured_media":13155,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"no","_lmt_disable":"no","footnotes":""},"categories":[1721,1780],"tags":[],"acf":[],"modified_by":"Tejas Tank","jetpack_featured_media_url":"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2023\/06\/Digital-gold.png?wsr","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/13154"}],"collection":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/users\/90"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/comments?post=13154"}],"version-history":[{"count":1,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/13154\/revisions"}],"predecessor-version":[{"id":13156,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/13154\/revisions\/13156"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media\/13155"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media?parent=13154"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/categories?post=13154"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/tags?post=13154"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}