The Golden Investment: One Gram at a time

Millennials have grown accustomed to a world of choices. Whether it’s the way they earn their money, the way they spend it, or even the way they invest it, millennials like to explore their options and find the one that suits them best. The one area where this power of choice was curtailed was in the choice of gold investment tools, till the advent of digital gold. Now, an entire generation of digital natives can seamlessly invest in digital gold assets, via a number of online platforms. And by doing so, they can partake in the re-emergence of one of world’s best strategic investments for long term growth.

Digital gold is simply physical gold bought digitally! One of the greatest attractions of digital gold for millennial investors is 24x7 accessibility and the ability to trade in ticket sizes as low as INR 1 to 1000. Moreover, digital gold is stored in secure and professionally managed independent vaults, with standard insurance for loss.  All these great features, combined with guaranteed 24k purity offered by trusted digital gold providers, makes this a versatile investment for young investors looking to invest in gold assets.

There are several non-physical gold-based investments, like Gold ETFs and Gold funds. However, where digital gold scores over diverse forms of gold investments is its sheer simplicity with no demat account or annual charges unlike Gold ETFs and Gold funds. . Furthermore, digital gold doesn’t require a steep initial commitment, with certain providers allowing buyers to invest as a little as Re. 1. Overall, experts suggest millennials invest a small portion of their monthly income in digital gold, to build a strong investment portfolio.

In keeping with the spontaneity of millennial life, digital gold is liquid, which can be quickly delivered to owners physically in the form of gold bars and coins, or instantly sold at live market rates. Buyers can sell their digital gold back to the platform at prevailing rates. And those who want their gold holdings converted to physical gold can get it done by paying nominal coin making and delivery charges. A minimum 1 gram is required for delivery.

Although digital gold has made investing in gold easier and more rewarding than before, it imposes certain limitations on buyers. Generally, there is a cap on the free vaulting period of 5 to 7 years, after which digital gold buyers are free to extend vaulting with nominal vaulting charges annually, or take delivery of the gold, or sell it. Another gap in the digital gold ecosystem is the lack of regulatory oversight. Digital gold remains unregulated, and is only offered by unregulated providers at the moment like jewellery, digital gold is also subject to 3% GST.

These factors must not distract from the transparency, liquidity and security that digital gold brings to an investment portfolio. Most of the gold is insured against any damage, and since many digital providers allow for the transfer of digital gold to other accounts, it makes for a great gift too! All in all, digital gold is the perfect guise for a tech-driven resurgence of an eternally valuable commodity.

To know more about more ways to invest in gold, visit www.mygoldguide.in/what-to-buy