digital gold investment

What are the benefits of digital gold investment in India?


Gold is one of the most valuable metals in India. Almost every house buys gold at some point in their life. We consume tonnes of gold every year, making India one of the top gold importers in the world. Gold’s popularity can be attributed to the fact that it holds great value even during inflation. In this blog, you will know What are the benefits of digital gold investment in India.

Besides gold being the safest investment option, it also offers a great way to access funds. You can get a gold loan by pledging your gold jewelry as collateral. You can get up to 80% of your gold’s market value as a loan at affordable interest rates.  However, before applying for a loan, make sure to use a gold loan calculator to determine your affordability. 

Digital gold 

With the advent of the internet, more and more people are resorting to digital gold rather than physical gold. The reason is that it is a safe, convenient, and flexible option. Unlike physical gold, you do not need to visit any physical location to invest in digital gold. You can get 24k gold at the current market rate and redeem the entire gold amount in the future. You can buy digital gold from the comfort of your home. All you need is a computer with internet availability. 

Top things to know before investing in digital gold

Before visiting online to buy digital gold, it is imperative to know how it works. This way, you can make an informed decision while buying gold. 

  • You can buy digital gold for as low as Rs. 20, depending on your gold seller. You do not need to have a large investment amount to buy gold. 
  • You will need to buy the gold based on its weight or the specific amount of cash you wish to dispense. 
  • You will need to buy at least 1 gram of gold while opting for digital gold investment. 
  • The gold you purchase online is stored in a secured vault under your name. However, the storage period varies across different companies. 
  • You can also redeem your gold by obtaining liquid cash against your transactions. 
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Benefits of digital gold

Digital gold is one of the safest and easiest wealth-creating opportunities in India. You have easy access to gold at the best market price. Here are some of the benefits that you can avail of while investing in digital gold: 

No investment restrictions: There is no restriction on how much digital gold you can buy.  You can start your digital gold investment journey with an amount you can afford. 

Assured quality: The best part about digital gold is that you are guaranteed to get the best quality. For instance, if you are opting for 24k gold, you will get 24k gold only. 

Easy to redeem: If you want to redeem your digital gold into liquid cash, physical gold coins, and bars, you can do so without any hurdle. 

Use it as collateral: Another benefit of digital gold is that you can use it as collateral to seek loans. The loan amount depends on the value of your digital gold. Keep in mind that if you do not repay your loan on time, your lender will take your gold. So, before getting a loan, make sure to use a gold loan calculator to determine your needs and affordability.

Safety: In the case of digital gold, you do not take any measures to ensure the safety of your gold as it is not subject to theft or loss. Your gold is safe in a secured vault verified by an independent trustee.  

Translation record: Investing in digital gold allows you to keep a record of your transactions. If you have any doubts concerning your past transactions, you can check them on the online app. 

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Investment diversification: Another benefit of investing in digital gold is that it allows you to balance or hedge your portfolio to reduce risk concentration. 

Instant updates: The digital gold platforms you are using to invest are linked with real-time market rates. Any changes in the online gold prices are immediately reflected in the apps. It, therefore, allows you to take advantage of the latest gold rates.

Absence of storage cost: After investing in digital gold, your seller allows you to keep your gold in a secured vault for up to five years without bearing any additional cost. 

In summary

Given the availability of the internet, investing in digital gold is the best way to hold your money and earn some extra cash. The upside of it is that you can use your digital gold as collateral to secure loans in the future. Your lender will decide the loan amount based on the market value of your gold. However, it is imperative to use a gold loan calculator to determine how much you can afford to borrow or if you can repay the loan amount on time.


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