Indians have a huge amount of love for gold. Recently, Digital Gold is becoming popular among investors, as it comes with a slew of benefits. In this blog, we are breaking down the basics of Digital Gold and why it is a popular investment option.
We all know that gold is a popular investment instrument for many Indians. We like to wear them and store them. These days, you can buy gold in various forms, like Digital Gold, Gold Exchange Traded Funds (ETFs), Gold Mutual Funds, Gold Futures Contracts, Sovereign Gold Bonds, and more.
Today, we will be explaining all about Digital Gold.
What Is Digital Gold?
In simple words, Digital Gold allows investors to buy and own gold electronically. Instead of holding physical gold, you hold an electronic representation of gold, which is backed by actual physical gold stored in secure, insured vaults. You can purchase Digital Gold through online platforms and apps. You can also use the apps to buy, sell, and manage your gold holdings electronically.
Why Is Digital Gold So Popular?
There are several reasons why many prefer Digital Gold. We are breaking down each of the reasons.
Digital Gold Is Convenient & Accessible
Investing in Digital Gold online provides a convenient way for anyone to start investing in gold without needing a large initial amount. You can buy Digital Gold for as low as ₹1, making it convenient for everyone.
Also, instead of dealing with physical bars or coins requiring secure storage and manual handling, Digital Gold allows you to buy and sell gold online. This means you can buy and sell gold from anywhere, using just your phone, eliminating the need to go to banks or physical stores.
Digital Gold Is Safe
When you buy physical gold, you need insurance or physical lockers to keep them safe. However, when you buy Digital Gold, your gold will be stored in secured vaults. These vaults are regularly audited by independent third-party auditors and are insured to protect against theft, loss, or damage. This adds a layer of security and peace of mind for investors, who prefer not to manage physical assets.
Also Read: Selling Digital Gold A Step-By-Step Guide
Digital Gold Is Cost-Effective
Investing in Digital Gold often involves lower costs compared to buying and storing physical gold. Traditional methods of purchasing gold come with various costs, including making charges and locker fees. When you buy Digital Gold, you pay only for the value of the gold itself, which makes it a more cost-effective investment option.
Digital Gold Is Liquid
You can buy and sell your gold holdings quickly and easily through online platforms. With physical gold, you need to spend a lot of time to find a buyer, negotiate prices, and sell the gold. Once you sell your Digital Gold holdings, the funds are usually available for reinvestment or withdrawal much faster than with physical gold transactions.
Also Read: How Can I Save Tax On Digital Gold?
Digital Gold Is Transparent
When you buy Digital Gold, you can get real-time updates on the value of your holdings. You can track the price of gold and the value of your investment instantly. Real-time tracking can help you make informed decisions based on current market conditions.
Also read: Exploring the Benefits of Investing in Digital Gold
Digital Gold Is A Good Diversification Option
Adding Digital Gold to your investment portfolio helps diversify your instruments. Gold is known for its ability to act as a hedge against inflation and economic uncertainty. Digital Gold can provide stability to your overall investment strategy, reduce portfolio risk, and potentially enhance returns, during periods of market volatility.
Digital Gold Is Easy To Manage
Buying Digital Gold through online platforms makes it easy to manage as these platforms offer features that are designed to simplify investment management. You can track the price in real time and execute transactions in just a few minutes.
In Conclusion…
Digital Gold provides several benefits, including convenience, accessibility, safety, liquidity, and more. It offers a modern alternative to traditional physical gold investment, which makes it accessible to a wide range of investors.
If you wish to include Digital Gold in your investment portfolio, you can check out the Koshex app. You can buy and sell Digital Gold and track the performance of your holdings through the app seamlessly. Koshex also offers other investment instruments such as Mutual Funds and Smart Deposits to diversify your portfolio, EMI-tracking features to stay on top of your debt, and personalized investment solutions to grow your wealth.
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