Gold has been a go-to investment option for many. Indians invest heavily in gold as it is considered auspicious and a safe option during times of crisis. However, physical gold can be too heavy on your wallet. And that is where digital gold comes in.
Rapid changes in modern technology have transformed this age-old gold investment procedure. Now, you can buy and sell digital gold from your home through a smartphone or computer.
Fintech companies, reputed jewelers, and even some banks sell digital gold online. The investment procedure is simple and hassle-free. When you buy digital gold, you don’t even have to go through the burden of storing it safely in a locker. The provider you buy the gold from stores it in their insured vaults on your behalf.
Let’s learn more about digital gold and how to buy and sell it online.
What is Digital Gold?
Digital gold is gold bought online through digital channels. You only need internet access and a bank account or UPI ID to buy digital gold. And once the purchase is made, an equivalent of the gold will be stored in a vault on your behalf. The entire storage process is taken care of by the provider from whom you buy the digital gold. Thus, it eliminates the trouble of storing physical gold.
Moreover, digital gold is pure 24-karat gold that can easily be converted into physical gold whenever needed. It can be redeemed through gold coins, bars, jewelry, etc.
How to Buy Digital Gold Online?
When buying digital gold online, there are no restrictions on the amount of gold you can purchase. You can buy it for as low as Rs.10. It is also the purest form of gold. i.e., 24 carats or 995 pure gold.
Certain entities offer digital gold in India, such as Augmont Goldtech Ltd and MMTC-PAMP India Pvt. Ltd, and more. Regarding payments, these companies have tie-ups with Paytm, Google Pay, PhonePe, etc., to buy and sell digital gold online. Some jewelers like Tanishq and PC Jewelers have also started selling gold online.
You can also buy digital gold through Koshex. All you have to do is create an account, go to ‘Explore Investments’, and click on ‘Buy Gold’ in the ‘Digital Gold’ option. Then, just enter the investment amount or quantity you would like to purchase and make the payment.
It is fairly simple to invest in digital gold using Paytm, Google Pay, or PhonePe as well. Select the “digital gold” or “gold” option in the app. Enter the amount you want to purchase and make the payment. After the payment is made successfully, the gold will be added to your digital gold account.
How to Sell Digital Gold Online?
Selling digital gold is as simple as buying it. And you can sell it at any time at the prevailing market prices. Let’s look at the process step by step.
- Log into the app from where you purchased digital gold.
- Select the “digital gold” or “gold” option in the app. There will be two options, one to buy digital gold and the other to sell digital gold.
- Enter the amount of gold you want to sell online. This can either be in rupees or grams.
- After this point, you must enter your phone number and bank details, such as account number, IFSC code, etc. Enter the bank account where you want the amount credited after selling the gold. ‘Continue’ to proceed further.
- An OTP will be sent to your mobile number for verification purposes.
- Check all the details once again and click on Sell Now.
- Once you click on the sell button, you can see the transaction ID and summary. You also have the option to download the invoice. After successful completion, the amount will be credited to your account.
Benefits of Digital Gold
Let’s quickly look at some of the benefits of digital gold.
- Digital gold ensures safe storage. Once you buy gold, it is securely stored in insured locker facilities provided by the trader.
- Digital gold is 24 karats or 995 pure gold.
- You can convert your digital gold to physical gold and then get it home-delivered to your doorstep.
- No lower limits or rules around minimum purchases make it a popular option among young investors. Digital gold also brings diversity to your investment portfolio.
- Some lenders accept digital gold as collateral for loans due to its purity.
- Digital gold market prices are the same all around the country.
Digital gold is a secure and easy option when investing in gold in smaller amounts. There are no limits to buying digital gold, so you can make small periodic purchases to create a strong portfolio and secure your financial future. It is a safe investment option and comes with the ease of conversion as well.
You can convert your digital gold into physical gold with ease. The process is simple and doesn’t take much time. You can also sell your digital gold online if you no longer want to keep it. The conversion and/or sale of digital gold can be done any time you want, and that too from the comfort of your home.
All you would require is a smartphone and an internet connection. Once the gold is sold, the amount will be credited to your bank account.
Different platforms and providers may have different features, terms, and conditions regarding the conversion of digital gold. It is best to research the provider before you start investing. Sign up with Koshex to invest in digital gold and get guidance on digital gold investment.
Frequently Asked Questions (FAQs)
Is there a minimum and maximum limit on the amount of gold you can buy?
Some apps allow you to buy gold for a minimum of Re. 1 and a maximum of Rs. 49,999 per purchase. And the maximum amount of gold you can store is Rs. 2 lakhs. Before buying digital gold online, it is best to check the guidelines and other provider rules and regulations.
Can digital gold be converted to cash?
Yes, digital gold can be converted to money by selling it. After you sell the digital gold, an equivalent amount will be transferred to your bank account. Digital gold can be easily sold online any time you want.