- Date : 04/09/2023
- Read: 4 mins
As the festive season approaches in September, discover why more and more Indians are turning to digital gold to celebrate special occasions this September.
As September approaches with the festivals of Krishna Janmashtami, Hartalika Teej, Ganesh Chaturthi, and Anant Chaturdashi, the demand for gold in India is on the rise. But it's not just the colourful traditions and customs that take centre stage during this time; it's also the growing interest in digital gold investments.
Highlights:
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As festivals draw near, digital gold investments are surging, merging tradition with modernity.
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Digital gold guarantees 24K purity and secure storage within bank vaults.
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Enjoy affordability and flexibility with small investments, compounding, and high liquidity.
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When gifting, choose between vouchers, digital wallets, or direct digital gold purchases for your loved ones.
What is digital gold?
Digital gold is a modern solution for purchasing gold online. It eliminates the need for physical gold by allowing users to invest in gold digitally, with as little as one rupee. The purchased gold is securely stored in insured vaults, ensuring peace of mind for investors.
Also Read: The Glittering Prize: Why Gold Is The Ultimate Investment For Retail Investors
What are the advantages of digital gold investments?
Investing in digital gold offers the following advantages:
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24K purity guarantee: When you invest in digital gold, you're assured of 24K purity, the highest standard of gold.
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Secure storage: Your digital gold holdings are securely stored in bank vaults, ensuring peace of mind.
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Minimal fees: Unlike physical gold, there are no making charges or annual fees, making it a cost-effective option.
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Fractional ownership: You can invest in small amounts of gold, enjoy compounding benefits, and ensure high liquidity.
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Easy transactions: Digital payment apps make purchasing a breeze, and accessible to anyone with an internet connection.
What are the modes and platforms for digital gold investments?
Investors have several options for investing in digital gold, including:
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Gold Exchange-Traded Funds (ETFs): Like buying stocks, but it's gold.
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Gold Mutual Funds: Invest in funds tied to gold's value.
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Gold Futures Contracts: High-risk and suitable for experienced investors.
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Sovereign Gold Bonds (SGBs): Government-backed, offering price appreciation and yield.
These options cater to different preferences and risk appetites, allowing investors to choose the most suitable option.
Some popular platforms for digital gold investments in India include Axis Gold ETF, HDFC Gold Exchange Traded Fund, Invesco India Gold Fund, and MMTC-PAMP India Private Limited, which partners with FinTech companies like Paytm and banks like HDFC Bank and ICICI Bank.
How should you consider digital gold investments for gifting options?
For those looking to gift digital gold, there are various options. You can choose physical gold vouchers that recipients can redeem for digital gold, opt for digital gold wallets for direct ownership, or make an immediate purchase of digital gold on behalf of the recipient. The choice depends on the recipient's preferences and familiarity with digital platforms.
Find the latest articles on Gold here.
Also Read: Sovereign Gold Bonds (SGBs) 2023-24 Issuance Dates Released By RBI. Read All Key Details.
Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.
