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Digital Gold Investment (2023): Definition, Benefits, Risk | Know All Details

Digital Gold Investment

Digital gold is a new competitor in the investing arena, while conventional assets like equities and real estate continue to hold their ground. We’ll dive into the realm of Digital Gold Investment in this blog and examine why it’s a wise decision in the fast-paced financial market of today.

What is Digital Gold Investment?

Cryptocurrencies such as Bitcoin and Ethereum, which are referred to as “digital gold,” have been increasingly popular as alternative investment options in recent years. Using this digital asset, investors can buy and sell gold without actually possessing any of the metal. Digital gold is produced via blockchain technology, which provides an open and safe transaction ledger. It is a safe and reliable investment option because the price of real gold directly influences the value of gold. The ease of use and accessibility of cryptocurrency trading are combined with the security and reliability of genuine gold ownership for investors who possess digital gold.

Benefits of Digital Gold Investment

  • Secure Storage: The business keeps digital gold in extremely safe vaults. It takes away your concern about loss or theft. You also avoid paying any locker fees that may be required for actual gold.  
  • No Lower Investment Limit: Gold investments have no bottom limit. Any sum can be invested, even Rs. 1 is a minimum. 
  • Use as Collateral: You can utilize gold as loan collateral. Because of its secure storage and 24K purity, lenders accept it as collateral. This lowers the possibility of a loan denial and does away with the headache of typical collateral documentation.
  • Ease of Exchange: Digital gold can be traded for real gold. Therefore, digital gold allows for the convenience of exchange and the possibility of having physical gold delivered right to your home.
  • Genuineness: 24K digital gold has a 99.99% purity level. Because the gold is certified, buyers can have faith in its authenticity and purity. Purchasers are guaranteed to receive the full value of their investment because the likelihood of fraud is greatly decreased.

Risks with Digital Gold Investment

  • No Regulatory Body: The expression “no regulatory body” refers to the lack of a formal organization or governing body that is in charge of enforcing rules or regulations in a certain market or sector. Inconsistent business practices, a lack of accountability, and danger for consumers and investors could arise from this oversight vacuum. 
  • Storage Time Limit: Storage time restrictions specify the amount of time that goods or resources can be stored in a certain area or building. Storage time constraints can be imposed by a number of factors, such as legal requirements, rental agreements, or the kind of items being stored. 
  • Upper Limit of Investment: The upper limit of investment is the maximum amount that an investor may put into a particular asset or investment instrument. Financial institutions, investment funds, and regulatory authorities may establish upper bounds to ensure efficient risk mitigation and diversification. 

Best Platform to Buy Digital Gold Investment In India

  • MMTC-PAMP Digital Gold: Using the app, you may purchase 24K gold that is 99.9% pure. You have the option to invest in gold in grams or by its worth. An automated invoice is generated and forwarded to you upon investment. Moreover, your account reflects the value of gold. You can also save on a daily, weekly, and monthly basis with the app to grow your gold corpus. Your investment is yours to purchase, sell, or redeem at any time of day. Delivery fees must be paid in order for your digital gold to be redeemed or converted into physical gold, which will be delivered right to your door.
  • Google Pay: To sell gold on its platform, Google Pay has teamed up with MMTC-PAMP. With Google Pay, you can swap, buy, and sell digital gold. Using the app, you can invest in 24K 99.9% pure digital gold. Digital gold will be added to your Google Pay Gold Locker as soon as you purchase it. You will receive the gold coins at your door after paying delivery fees to convert digital gold to physical gold. Using Google Pay to invest in digital gold is extremely safe because your UPI PIN codes will be used for every transaction.
  • Paytm: An industry-leading payment app that over 30 crore Indians trust is Paytm. It provides a wide range of services, such as bill payment, credit score checks, and money transfers. Moreover, you can invest through the app in mutual funds, the National Pension Scheme (NPS), and 24K 99.9% pure digital gold. The app and MMTC-PAMP have teamed up to offer digital gold for sale on its marketplace. Thus, the digital gold that you purchase is kept safe in MMTC-PAMP vaults. On Paytm, you can always check the value of your gold portfolio. In addition, you can order delivery, sell, or give as you please.
  • PhonePe: Another app for payments is PhonePe. On it, you can purchase insurance, make bill payments, and make transfers. Gold and mutual funds are additional investment options. The company is able to provide its customers with 24K 99.9% purity gold thanks to its partnership with MMTC-PAMP and SafeGold. Using your smartphone, you can purchase, sell, and convert your digital gold in a matter of minutes. Additionally, the program provides safe bank-grade lockers for storing gold. When you sell your digital gold, you can get paid right away. When the app delivers your gold to you in the form of coins and bars, there is a small delivery cost.
  • 5Paisa: An easy-to-use stock market trading app for both novices and traders is called 5Paisa. You can invest in gold using the app without any additional fees. Additionally, you have the option to sell the gold for quick, hassle-free cash.
  • Groww: You will deal directly with Augmont Gold for all purchases and sales of gold. To purchase gold, you need to register for a Groww account. The website makes investing in gold simple, convenient, and economical by not charging account opening fees and enabling you to purchase gold in small denominations.

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