Ground Report | New Delhi: What is Digital Gold; Digital gold has become a new opportunity for a lot of people to invest in the yellow metal. As people are hesitant to visit jewelery stores and gold dealers, being able to buy gold online has become the perfect solution.
What is Digital Gold?
Digital gold can be bought online and is stored in vaults insured by the seller on behalf of the customer. Digital gold is a convenient and cost-effective way of depositing the yellow metal for those who prefer it in physical form. You to buy, sell and deposit pure gold in fractions anytime and anywhere. Thus, even with a modest monetary investment of Rs. 1, One can buy a certain quantity of the precious metal.
Due to the convenience, it provides to the buyer, digital gold is rapidly growing among the investor community. In India, the option of investing in digital gold is being offered in association with Augmont, MMTC-PAMP, or both.
Every gram purchased by an investor is backed by genuine 24K physical gold, which can be easily sold back online at market-linked gold rates. Obviously, you don’t have to worry about the plethora of concerns discussed above, such as paying for its storage.
How you can buy one
You can invest from multiple mobile e-wallets like Paytm, Google Pay, and PhonePe. Brokers like HDFC Securities and Motilal Oswal also have the option of investing in digital gold. At present, there are three companies offering in India Augmont Gold Ltd., MMTC-PAMP India Pvt Ltd. State-run MMTC Ltd. with the SAFE brand, and Swiss firms MKS PAMP and Digital Gold India Pvt Ltd. is the combined SafeGold brand.
Apps and websites like Paytm, G-pay, etc only provide a platform for metal trading companies like SafeGold and MMTC PAMP. Once you invest in digital gold, these trading companies buy an equal amount of physical gold and store it in secure vaults in your name. Apps and websites like Paytm, Google-pay etc only provide a platform for metal trading companies like SafeGold and MMTC PAMP. Once you invest in digital gold, these trading companies buy an equivalent amount of physical gold and store it in secure vaults in your name.
Key things to know
GST increases the cost burden: When you buy digital gold, you will have to pay 3 percent Goods and Services Tax (GST) in case you buy physical gold.
Holding Charges: If you are buying gold from SafeGold using PhonePe, it is likely that you may have to pay storage charges. These are as follows: No charge for the first two years. If the gold content is less than 2 grams at the end of two years from the date of your first purchase, a charge of 0.05 percent per month is charged. If gold is purchased from the MMTC-PAMP platform, there is no storage charge.
Delivery and making charges: One of the advantages is that it offers the option of taking physical delivery of gold. So, you may have to pay a delivery charge.