Did you know there are three ways of buying gold? The first is the traditional way of buying physical gold for consumption in the form of ornaments, coins or bars. The second way is through investment in gold-backed financial instruments like Exchange-Traded Funds (ETFs) or sovereign gold bonds, and a third is through digital gold products.
Digital gold investment is an online mode of investing in the physical form of the yellow metal for any amount without worrying about its purity, storage and safety. Riding on the burgeoning digital economy, several vendors have started offering products to consumers who wish to buy gold online fairly and transparently. So if you are considering investing in digital gold, then let’s take a look at its features, advantages.
What is digital gold?
Digital gold is a way of accumulating pure gold in parts anytime and anywhere, even with the smallest amount of investment. It enables you to buy gold without worrying about its purity, safety and storage. Each gram of digigold purchased by the individual is backed by actual 24-Karat physical gold. This physical gold is set aside in an allocated vault by the vendor who acts as its custodian. If you sell a part of it, then the exact quantity will be deducted from storage.
How to buy gold online?
If you are wondering how to invest in gold online through your bank or broker, three ways to buy online gold are through Gold ETFs, Sovereign Gold Bonds and Digital Gold. Most brokers sell digital gold in collaboration with MMTC-PAMP. It is a joint venture between the Indian public sector unit MMTC and Switzerland-based PAMP-SA.
Features of digital gold:
Some of the features of digital gold are as follow:
- You can buy gold at that minimum investment of Re 1. The maximum amount differs from one distributor to another.
- Gold is offered in 24-Karat purity. SafeGold offers 99.5 percent purity, while MMTC-PAMP offers 99.9 percent.
- The physical gold is safely stored by the vendor until redemption. No charges are levied for two years by SafeGold, while MMTC-PAMP does not charge for vault for five years.
- You can take delivery of the physical gold or redeem it by selling it back to the vendor at the applicable price.
- You can redeem the gold from approved jewellers by purchasing ornaments.
- The gold stored in vaults is insured against losses.
Now that you’ve seen how to buy gold online, you should consider investing. Digital gold saves you from hefty charges of making ornaments. Most importantly, it allows you to accumulate and redeem gold in parts. There is also an ease of buying the product online from anywhere. These qualities have made the product popular across a spectrum of Indian society.