What’s digital gold and what are professionals and cons of investing in it?

Digital gold is a digital technique of shopping for and investing within the yellow steel with out having to bodily maintain the gold. You should purchase it on-line. And, the minimal purchase or promote worth is one rupee.

Why is that this necessary?

Shopping for bodily gold has sure downsides. Firstly, there may be the difficulty of figuring out its purity and legitimacy. And, secondly, there are challenges related to safekeeping and storage.

However, digital gold is purchased on-line and it’s saved in insured vaults by the vendor on behalf of the customer.

And what concerning the purity of the gold in query?

The steel bought is 24k gold, or 99.5 per cent pure. Additionally, the customer may be assured of its purity as it’s licensed by government-licensed businesses.

There are different advantages of investing in digital gold.

For one, the investor can take bodily supply of the gold at his or her doorstep.

It is usually extremely liquid. One can simply purchase or promote items anytime and anyplace.

The digital gold you have purchased can be utilized as collateral for on-line loans.

Not solely is your buy saved safely, however it’s also 100 per cent insured.

Final however not least, you may alternate it for bodily gold within the type of jewelry, cash and bullion.

Digital gold: Professionals and cons


· Investor can take bodily supply of gold at his doorstep

· Make investments an quantity as small as Re 1

· Can be utilized as collateral for on-line loans

· Digital gold is real and the purity is 24K

· It’s saved safely and is 100{bce2ac57dae147ae13b811f47f24d80c66c6ab504b39dda4a9b6e8ac93725942} insured

· It may be exchanged for bodily jewelry, gold cash and bullion


· Rs 200,000 restrict for funding on most platforms

· Lack of official regulating physique like RBI or Sebi

· Supply and making fees can apply

· Typically, corporations provide restricted storage interval

In India, there are three predominant corporations that supply digital gold — MMTC-PAMP India, Augmont Gold Ltd and Digital Gold India.

In the meantime, purposes corresponding to PhonePe and Paytm provide a platform for investing in digital gold.

In August of 2021, the exchanges requested inventory brokers to cease promoting digital gold.

The directive reportedly got here to the exchanges from the Securities and Trade Board of India. Subsequently, the exchanges despatched a round to brokers to adjust to the rules.

Subsequently, inventory brokers have stopped promoting digital gold, whereas cellular wallets and funding platforms proceed to take action.

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