Investing in gold this festive season? Know what digital gold is, what are its advantages


The festive season is just around the corner with Indians gearing up for plenty of occasions over the coming weeks. Buying gold during the festive season has become a tradition in India and is synonymous with occasions such as Diwali, Dhanteras, and Durga Puja, among others. However, with the changing times, traditions have also changed and buying gold is more than just a celebration, it is also seen as a form of investment.

In the traditional Indian household, gold is still one of the best and safest investments to make, and for them, physical gold is still the option of choice. However, there are other ways to buy gold in 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 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-owned MMTC Ltd and Swiss company MKS PAMP; and Digital Gold India Pvt. Ltd with its SafeGold brand. Digital gold can also be purchased through popular wallets including Paytm, Amazon Pay, Google Pay, and PhonePe.

Buying digital gold is also a small investment option, as sellers allow you to buy a small amount of gold. The digital gold price range starts from Re 1.

Should you buy digital gold?

Tradebulls Securities Commodity/Currency Analyst Bhavik Patel said that currently all gold must be hallmarked, buying gold is entirely up to the individual’s needs and purpose.

“One of the downsides of having to duty physical gold was the issue of identifying its purity and legitimacy, but now all gold is hallmarked and so one can buy physical gold without any apprehension about to its purity.Because gold depends on the requirement of the person.Our ancestors placed their savings in gold because it is very liquid and there were not many opportunities to invest.Now you can owning gold through digital means. However, there are some apprehensions such as the lack of an official regulatory body like RBI or Sebi,” Patel told

“The advantages of buying digital gold are the minimum amount. For someone who is looking to invest in gold like SIP, he can buy digital gold with any amount, while to buy physical gold, you have to make a certain minimum purchase. Also, there is no storage or security concern unlike physical gold where you also have to rent a locker to protect your gold,” said he added.

“So it all depends on the goal. If one is looking to gift someone gold, then buying physical gold (gold coins or jewelry) is a better option, but if one is looking to invest for the long term, such as for the marriage of his children or diverting his savings to gold, buying digital gold makes sense. “, notes the analyst.

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