Digital Gold: Investing in digital gold has become an easy and popular way to invest in recent years. This is such an online medium through which you can buy gold ranging from Rs 10 to Rs 100. Platforms like PhonePe, Paytm, Google Pay along with companies like MMTC-PAMP and Augmont are providing the facility of investing in digital gold. Apart from this, many jewelery brands like Tanishq are also giving investors the option to invest in digital gold.

Why is digital gold becoming popular?

Investing in digital gold is easy. In this, you can buy or sell gold in minutes through different mobile apps and online platforms. Another reason for increasing interest in it is that you can invest comfortably sitting at home.

Another specialty of this is that there is no need to worry about keeping the gold in a safe place. This is best for those who want to take advantage of the rising price of gold. However, there is risk in this also. Your money can get stuck by using the wrong platform or ignoring the rules. If you are not careful while investing in digital gold, you may suffer huge losses, hence before investing it is important to keep some things in mind such as whether the platform is legal or not, what is the policy of the company etc.

don’t trust everyone

Digital gold is available on many online platforms and wallet apps, but you cannot trust everyone. Some platforms only act as middlemen and do not hold gold stocks. In such a situation, if the company’s server goes down or the platform gets stuck in some problem, your investment may sink.

Before investing, it is important to check whether the company is approved by the Reserve Bank of India or market regulator SEBI or not. Always trust well-known companies like Augmont, MMTC-PAMP or Safegold. Recently SEBI has also warned investors regarding this. SEBI says that digital gold can be purchased on online platforms like Paytm, Google Pay, Phone Pay, but digital gold does not come under any regulation. These are not secured nor are they commodity derivatives, so if the platform defaults, SEBI will not be able to help them.

Take care of time period

Many people keep digital gold for a long time, but they are not aware of its limits and charges. Some platforms allow you to store gold only for 5 years. After that you will either have to take physical delivery or sell it.

Delivery includes tax, making charges and transportation costs. This may reduce your returns, so if you are investing in digital gold, first decide whether it is a short-term or long-term plan. You can also choose options like gold ETF or sovereign gold bonds as they offer both government security and interest.

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Digital Gold Investment: With time the methods of investing in gold are changing. Apart from buying jewellery, coins or bars, now investment in digital gold has also started increasing. However, there is also a risk of fraud in this. SEBI has issued an alert on this saying that digital gold and e-gold products do not come under the securities market framework. These are different from SEBI regulated gold exchange traded funds or ETFs and electronic gold receipts.

SEBI alerted

SEBI has further warned that many online platforms are nowadays seen offering investment in digital gold or E-Gold, but due to not being regulated, there is a risk of investing in them. Since digital gold does not come under the purview of SEBI regulation, if any irregularity or fraud occurs while investing in digital gold or e-gold products, there will be no protection or help from SEBI.

What is digital gold?

In digital gold you buy or sell gold electronically. Digital gold investment can be done easily from home through mobile apps or online platforms. It is being promoted a lot these days. In this, you can start investing with a minimum of Rs 1 and buy or sell gold depending on the price of gold in the market. However, many digital gold platforms are not SEBI regulated. In such a situation, in case of default, you will not get any protection from SEBI.

Investing in these is safe

SEBI said that if one has to invest in gold, then many ways are already available, which also come under the purview of SEBI rules and there is no risk in investing in it. If you want, you can invest in gold exchange traded funds (Gold ETFs), electronic gold receipts (EGRs) and exchange-traded commodity derivative contracts through SEBI-registered intermediaries.

Many big brands are selling digital gold

Nowadays many companies like Tanishq, Aditya Birla Capital, PhonePe, Caratlane, MMTC-PAMP, Joy Alukkas and Shriram Finance are selling digital gold. However, there is a risk factor in this also because SEBI is not regulated. However, Tanishq and MMTC-PAMP have claimed on their website that they are offering digital gold with the SafeGold brand. This is a reliable way to buy 24 carat pure gold. Investors can start investing in these with Rs 10-100.

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Digital gold investment: A decline in gold prices has been seen since the end of the festive season. In such a situation, Indian investors can consider investing in gold. However, gold as an investment has been the choice of investors since the beginning. Gold protects investors from market fluctuations and global uncertainties.

In the last few years, gold has also given very good returns. If, you do not want the hassle of buying gold and handling it. So in such a situation, you can choose one of the digital options like Gold ETF or Gold Mutual Fund. In both the options your gold will be available in digital form. Let us know which of these two options may be right for you.

gold mutual fund

Under Gold Mutual Fund, you invest in gold in small amounts through SIP. For this you do not need a demat account. Your fund manager invests your money directly in gold or gold ETFs.

Market experts believe that gold mutual funds can be a convenient option for new investors. Those who do not want to do real time trading. Also want to get good returns on your investment.

gold etf

By investing in gold ETF, you track the prices of gold on real time. For this, a demat account is required, because you buy and sell your gold in the stock market. Gold ETF prices keep changing throughout the day. Market experts believe that, if you want more liquidity and you have knowledge of the market. In this situation you can invest in Gold ETF. For gold ETF you have to pay brokerage and demat account charges.

By investing in both gold ETFs and gold mutual funds, there is no chance of your gold being stolen or lost. Talking about the tax levied on both, you have to pay tax on both Gold ETF and Gold Mutual Fund. If you sell your investment within three years, you will have to pay short term capital gains tax.

And after three years you have to pay long term capital gains tax. You can choose either of the two according to your convenience and needs. However, before making any kind of investment, you should definitely talk to your financial advisor.

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