The festive season is round the corner, with Indians gearing up for a host of occasions in the coming few weeks. Buying gold during the festive season has become more of a tradition in India, and is synonymous with occasions such as Diwali, Dhanteras, and Durga Puja among others. However, with changing times, traditions have changed too and buying gold is more than just about celebrating, it is considered a form of investment too.
In the traditional Indian household, gold is still one of the best and safest investment to make, and for them physical gold is always the go-to option. However, there are other ways one can make a gold purchase this festive season, for example or digital gold.
What is Digital Gold?
Digital gold has become popular among investors who only want to invest in the yellow metal. As the name suggests, digital gold is gold that can be purchased online. The equivalent value of physical gold is stored by the seller in a safe vault on behalf of the investor.
Where to Buy Digital Gold?
Three companies that offer digital gold are — Augmont Gold; MMTC-PAMP India Pvt. Ltd, a joint venture between state-run MMTC Ltd and Swiss firm MKS PAMP; and Digital Gold India Pvt. Ltd with its SafeGold brand. One can also purchase digital gold via popular wallets including Paytm, Amazon Pay, Google Pay and PhonePe.
Buying digital gold is a small investment option as well, as sellers allow you to buy a small amount of gold. The price range of digital gold starts from as low as Re 1.
Should you Buy Digital Gold?
As per Bhavik Patel, commodity/currency analyst Tradebulls Securities, said since at present all gold needs to be hallmarked, buying of gold totally comes down to the person’s requirement and purpose.
“One of the cons of owing physical gold was issue of identifying its purity and legitimacy but now all gold is hallmarked and so one can buy physical gold without any apprehension about its purity. Owing gold depends on requirement of person. Our forefathers would put their savings in gold as it is highly liquid and there weren’t many avenues of investing. Now you can own gold through digital means. However there are some apprehension such as lack of official regulating body like RBI or Sebi,” Patel told News18.com.
“Pros of buying digital gold is minimum amount. For someone who is looking to invest in gold like SIP can buy digital gold with any amount while for buying physical gold, one has to make certain minimum purchase. Also there is no worry of storage or security unlike in physical gold where one also has to rent locker for safeguarding their gold,” he added.
“So it all depends on purpose. If one is looking to gift gold for someone, then buying physical gold (Gold coins or jewellery) is better option but if one is looking to invest for long term like for their children’s marriage or diverting their savings into gold then buying digital gold makes sense,” noted the analyst.
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