Digital Gold

Digital gold is a simple and economical way for those who choose to collect the yellow metal in physical form. Digital gold allows you to buy, sell and store pure gold anywhere and, in fractions. And even with 1 Re's tiny monetary investment, a certain amount of precious metal may be purchased. Digital gold is quickly gaining traction in the investor community due to the convenience it provides to the buyer. In India, digital gold investment is available in partnership with Augmont, MMTC-PAMP or both.

Various available options

In addition to buying physical gold from your local gem store or investing in gold-backed financial instruments such as ETFs, there is now a third option available to buyers of yellow metal: Gold Accumulation Plans (GAP).

You can buy as much or as little as you want. There are currently two digital buying options for gold: 'Digital Gold,' available on the Paytm mobile wallet platform and the Stock Holding Corp's 'GoldRush.'

E-gold buying through Demat account

E-gold is processed in Demat form electronically and can be freely converted into actual gold. E-gold is available in India from NSEL, an international company providing investors with the option of investing in goods such as gold, silver and platinum.

E-Gold is one product that allows investors to buy gold on a smaller scale, for example, 1 gm, 2 gm, 3 gm, etc. You will be credited to your Demat account within T+2 days for the gold units you will purchase here. Likewise, for example, if you sell today, in 2 days (from the date of sale) the same will be debited from your Demat list.

Difference between E-GOLD and ETF GOLD

Trading cost: Based on the costs calculated, the e-gold is earning a better return than gold ETFs as the NAV is given for gold ETFs following a fund-management fee deduction plus additional custodian and storage costs. In the other scenario, e-gold is exchanged for an extremely negligible expense on the spot market.

The e-gold trading does not require recurring charges, and hence, returns are higher in comparison over a period of time.

Conversion:

Both types can be transformed into physical gold, but the minimum quantity varies for each. For e-gold, the minimum quantity is 8 Grams, and for gold ETF, one can only convert from more than 500 gm to 1 Kg. For e-gold.

Benefits of investing in E-Gold:

● The NSE gold price is based on the Indian market level.

● Investors in small amounts can buy and sell gold. 2 gm of gold, for example-1gm.

● Pricing stability and smooth exchange are one of this product's main assets.

● The liquidity of this commodity is high. At any time, you can sell it.

● No chances of impurities.

Benefits of investing in ETF-Gold:

● Inflation Hedge: Gold is a secure investment as gold can be employed to shield it from fluctuations in currency and inflation.

● Easy trading: To start trading in gold-powered ETFs, you have to purchase at least one piece – up to 1 gram of gold. The buying and selling of products operate much like equities – through the stockbroker or ETF fund manager you can trade.

● Open trade: Gold stock prices are open to the public. Without any uncertainty, you may test the gold prices for the day or the hour.

● Fast transacting: Gold ETFs can be bought and sold from any part of the world at any time of day while the stock is available.

● Inexpensive: The gold equipment listed on the exchange shall not be charged with entrance or exit for buying or selling units. The brokerage charges must be paid just between 0.5-1%.

● Secure asset: Prices for gold are typically not very fluctuating. Even if your equity returns go down, you will not get significant losses from Gold ETFs.

● Portfolio diversification: Gold ETFs are a good way to increase your portfolio's diversity. Different investments will increase your returns and reduce your losses across unsteady market conditions.

● Loan collateral: If you wish to borrow from financial institutions, your gold ETFs will serve as collateral protection.

Reasons for investing in Digital Gold:

● Say goodbye to heavy charges:

Whenever we buy physical gold in the form of gems, we are worried about the making charges that vary between dealers, ranging between 6% and 14% everywhere. This is in addition to the price of gold in your account. This issue is solved by digital gold.

● Only pay for gold:

Many of us choose to purchase it in the form of jewellery when shopping for gold. This means that you pay for that diamond, as well as for other precious metals or stones that have been amalgamated. You are only investing in 24k gold when you buy digital gold.

● Encash gold anytime, anywhere:

As previously mentioned, it's easier to say than to sell actual gold immediately in an emergency. And this is a smart decision to invest in digital gold. It allows you to sell gold online immediately. After a certain quantity of gold is sold, the balance is transferred within a couple of hours to your registered bank account.

● No more risky bank savings:

Once you continue to invest in digital coins, you no longer have to worry about storing them in vaults, as banks only provide this service at a cost that goes along with a registration fee. Your digital gold is secure in a protected vault without paying for the service.

● Trade your gold without hassles:

If you want to buy gold so that you can deal conveniently with it, you 're better off buying digital gold. The trade-in real gold takes time. It isn't easy to purchase gold jewellery because of our often-spoiled choices. It isn't very easy. Yet digital gold gives you the chance to exchange your digital gold freely anywhere and anytime.

Why invest in gold during COVID times?

Investment in the times of crisis is considered a haven for gold. This is why it is comparatively less volatile and has traditionally maintained wealth than any other class of assets. It was unpredictable this time around. Gold does not play exactly its role in past years with globally stalled markets amidst Covid-19 pandemics. The uncertainty in stock and credit markets is also infiltrating into the yellow metal.