Is Buying Digital Gold A Good Investment?

Where To Buy Digital Gold

Digital gold

Digital gold has become India’s favorite investment instrument in the past couple of years. Here’s a complete guide to help you buy digital gold if you haven’t already.

Meet Digital Gold

For the uninitiated, digital gold allows you to buy physical gold in digital mode. You can buy digital gold online which is stored in insured vaults by the seller on behalf of the customer.

The seller will store an equivalent quantity of physical gold in secured vaults. 

You can sell this gold at any time at live market rates, either in rupees or grams. You can also take possession of the gold in physical gold like coins or jewelry, adjusted for any making charges and packaging costs.

Also Explore: Exploring the Benefits of Investing in Digital Gold

Who Is Offering Digital Gold In India?

In India, a couple of companies offer digital gold, including MMTC-PAMP India Pvt. Ltd, which is a joint venture between state-run MMTC Ltd and Swiss firm MKS PAMP.

MMTC-PAMP India Pvt. Ltd is internationally recognized as an industry leader for bringing global standards of excellence to the Indian precious metals industry.

They are the only LBMA (London Bullion Market Association) accredited gold refinery in India and their gold is accepted across global commodity exchanges and central banks.

MMTC-PAMP has partnered with Koshex to offer services to users to buy digital gold directly from them via Koshex’s easy and convenient platform.

Koshex is a one-stop solution for every Indian investor who is looking to invest in digital gold. You can buy, gift, and sell digital gold from one place.

You can also track and manage your investment in digital gold through Koshex.

Advantages Of Buying Digital Gold

An investment in digital gold investment provides many advantages. Here are a few such digital gold benefits: 

  • ConvenientDigital gold can be bought only through Koshex in just a couple of clicks. There is no need for you to go to the store or even leave the house. At this age of the pandemic, it is safe to buy digital gold, as it doesn’t require you to step out of the house. On the other hand, it is just as hassle-free when you want to sell it. The transactions will happen at the prevailing gold prices, but some institutions might levy some charges. 
  • No Restrictions You can put any amount of your savings to invest in digital gold. It doesn’t matter if you are in the early stages of your career and do not have enough savings to make a considerable investment. You can start investing in digital gold with just ₹100, unlike physical gold, which is more expensive to buy.
  • Purity Guaranteed When you buy physical gold, there is a slight hint of worry about whether you are buying authentic 24K gold. However, when you buy digital gold, the gold the companies buy on your behalf is pure as it is their responsibility to make sure of the gold’s purity.
  • Easier ConversionIt is easy to convert digital gold into physical gold. Instead of selling the gold, you can convert it into coins or jewelry. The physical gold can then be delivered to you directly. 
  • ProtectionWhen you hold physical gold in your house, there are risks of robbery. However, with digital gold, it is the company’s responsibility to keep it protected. You can log in and access them anytime you want through your phone.  
  • No Maintenance Required Unlike physical gold, digital gold doesn’t need any maintenance on your part and you can easily keep them in a safe place for several years. 
  • Use As CollateralOne of the greatest digital gold benefits is that it serves as an ideal form of security that you can use for availing of online loans. It counts as an asset and can be pledged as collateral for credit.
  • Diversification If you are looking to balance the risk factor in your overall investment portfolio, digital gold provides the perfect investment mode for you to diversify. When you have allocated a lot of money into equity mutual funds or any other risky assets, it is a good idea to include digital gold to reduce the risk and increase the gains.

Disadvantages Of Buying Digital Gold

We know digital gold comes with many benefits, but there are a few disadvantages to buying digital gold as well. 

Have To Pay GST When you buy digital gold, the current gold price will be tagged with 3% GST (Goods and Services Tax). 

More Charges To Pay You would have to pay extra spread costs, including handling charges, transaction charges, and storage charges while buying the gold. These charges tend to be around 2-3%. 

Sign Agreements Many companies make their investors sign agreements or bonds of a certain time period. After the predetermined time period, the investor either has to sell the gold or at least convert the digital gold into physical gold.

How To Buy Digital Gold With Koshex?

Buying digital gold through Koshex is simple and uncomplicated. Unlike other platforms, which require you to go through a lengthy process, Koshex allows you to buy digital gold for up to ₹2 lakhs without doing any KYC verification.

Here, we will explain how you can buy digital gold from Koshex in just a few clicks. 

Step 1: Create an account with Koshex

Step 2: Go to “Explore Investments” 

Step 3: Click “Buy Gold” in the Digital Gold option

Step 4: You can enter either the ‘Investment Amount’ or ‘Quantity’ and click the ‘Invest Now’ button

Step 5: A confirmation screen will pop up. Click ‘Buy Now, and make the payment. That’s it!

You can now track the performance of your digital gold investment on the ‘Holdings’ Screen. 

Do More At Koshex

With Koshex, you can gift digital gold to your loved ones. You don’t have to worry about the making charges and your loved ones don’t have to worry about the safety and purity of the gold.

According to historical data, the value of gold tends to go up in time. So, the ₹5000 digital gold that you gift today might be worth ₹15000 in the future.

You can also invest in a ‘Gold Savings Plan’ and through this, you can set up a monthly or weekly plan to buy gold. You can enter the investment amount, frequency, tenure, and start date.

The amount will be deducted automatically from your bank account and digital gold will be bought for that amount. 

In The End…

We hope this article helped you understand how you can buy digital gold through Koshex, and also gift or start a savings plan with us. Koshex allows you to buy digital gold in less than 3 minutes.

Be a smart investor, and choose digital gold with Koshex today. All you need to do is to head over to our platform and create an account to start your digital gold journey. Join millions of smart investors by choosing digital gold.