For decades, gold has been one of the favourite investment options for many Indians. When financial markets were not as mainstream as today, real estate and gold were the only investment options commonly understood by the retail investor.
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Amongst the two, gold had the massive advantage of allowing people to invest even tiny amounts. It was also considered to be safe and was widely accepted.
Recently, the trend of investing in digital gold has picked up, and it has left many retail investors wondering, what is digital gold? Here we will try to explain what digital gold is and talk about the pros of investing in it.
What is Digital Gold?
Digital gold is a safe and easy way to invest in gold. When you invest in digital gold with any company, that company will buy the equivalent amount of digital gold and store it in a secure vault under your name. You can buy and sell it online through many financial institutions.
And the best part: You no longer need a large sum of money to buy gold! Start buying gold online from as low was Rs 10 on the Wizely app!
Also read: Smart Ways To Buy Gold
Advantages of Investing in Digital Gold
- You can buy it online through many financial institutions. It is as easy as purchasing an app, and it's just as hassle-free when you want to sell it. The transactions happen at the prevailing gold prices even though the institution might charge you some fees.
- You do not have to worry about the legitimacy of the gold. When you buy physical gold, there is always a fear of buying actual authentic 24 karat gold. When you buy it through a financial institution digitally, then making sure that the gold they buy on your behalf is pure is their responsibility.
- Safety from theft. Physical gold comes with the risk of robbery and safety. If you are looking to invest a heavy amount, you will have to store all the gold in your house or somewhere safe. It is a constant source of worry, especially when you travel often. When you buy digital gold, it is the institution's responsibility to keep it protected. You need your credentials and can access them anytime you want through your phone. Even if you lose your phone, you can log in to your accounts through your new phone. Do remember that the institutions would charge you for the vault space that your gold takes.
- It is easy to convert it into physical gold. Instead of selling it and getting the money transferred to your bank, you can redeem it from the institution that you bought it through.
- The prices of digital gold are the same across the country and do not fluctuate in different states like physical gold. So, if you change cities, it might be a hassle to carry physical gold everywhere, and you might not even get the same prices. Digital gold solves this problem.
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Also read: How to Calculate Return on Investment?
Technological advancement in the financial sector has made it easy for everyone to invest in valuable metals like gold. So make sure you read all subject-related documents carefully and understand the investment policies before making any decision.
(Check out 'Learn & Grow with Wizely' 'to read and learn all about personal finance and financial planning.)