Elearnmarkets - Financial Market Learning
  • Categories
    • Basic Finance
    • Derivatives
      • Futures
      • Options
    • Financial Planning
    • Fundamental Analysis
    • Technical Analysis
    • Marketshala
    • Miscellaneous
  • Language
    • English
    • Hindi
    • Bengali
No Result
View All Result
  • Courses
  • Webinars
  • Stories
Elearnmarkets - Learn Stock Market, trading, investing for Free
  • Categories
    • Basic Finance
    • Derivatives
      • Futures
      • Options
    • Financial Planning
    • Fundamental Analysis
    • Technical Analysis
    • Marketshala
    • Miscellaneous
  • Language
    • English
    • Hindi
    • Bengali
No Result
View All Result
  • Courses
  • Webinars
  • Stories
Elearnmarkets - Learn Stock Market, trading, investing for Free
No Result
View All Result
Home Basic Finance
Digital Gold Investment - How to Invest in Gold during Covid? 1

Digital Gold Investment – How to Invest in Gold during Covid?

Elearnmarkets by Elearnmarkets
November 3, 2022
in Basic Finance
Reading Time: 9 mins read
2
3.7k
VIEWS
Share on FacebookShare on XShare on WhatsApp

Today Gold is no longer used as currency but it can still be used as money. In fact, Gold has been a store of value for over 3000 years. Much longer than any currency anywhere.

In India, Gold is believed to be “God’s Money” and is offered to holy temples on almost all auspicious occasions. This makes India the largest importer of Gold in the world today and digital gold investment has become one of the best ways to invest.

Despite being in the midst of a global pandemic, Indians have found a new way to invest in the yellow metal – Digital Gold.

As people are hesitant to visit jewellery stores and gold dealers, being able to procure gold online has come as a perfect solution to many investors.

One Digital Gold investment, Augmont Gold Ltd. saw its businesses increase by 40-50% during the lockdown period.

Table of Contents
What are the ways to invest in Gold?
What is Digital Gold?
How Digital Gold works?
How to trade in Digital Gold?
Benefits of Investing in Digital Gold
Disadvantages of Investing in Digital Gold
Why Gold is shining during a pandemic?
Conclusion

So before we dive into what Digital Gold investment is, let’s do a quick rundown of how we have been investing in gold over the years:

What are the Ways to invest in Gold?

Well historically the most common way to invest in Gold has been to buy physical gold in the form of :

RelatedPosts

How to Invest in Shares: A Beginner’s Guide 2

How to Invest in Shares: A Beginner’s Guide

September 27, 2023
25.6k
Top 9 Types of Trading Order 3

Top 9 Types of Trading Order

September 22, 2023
36k
Online Stock Market Trading: Everything You Need to Know 4

Online Stock Market Trading: Everything You Need to Know

September 20, 2023
817
  • Coins
  • Bullion and 
  • Jewellery.

Apart from that we have Sovereign Gold Bonds, Gold Mutual Funds and Gold ETFs to choose from.

But during a pandemic, another method of investing in Gold that has been gaining immense popularity is in the form of Digital Gold Investment.

What is Digital Gold?

Buying physical gold certainly has its downsides. There are issues of identifying its legitimacy and purity, then there are problems of safekeeping and storage. One more issue is that we are in the midst of a pandemic. It is not quite ideal to go out to gold dealers or jewelry stores.

Digital gold investment, on the other hand, can be bought online and is stored in insured vaults by the seller on behalf of the customer. It also helps us overcome all the aforementioned issues of physical gold purchases. All you require is Internet/mobile banking and you can invest in gold digitally anytime, anywhere.

How Digital Gold works?

You can do digital gold investment from several mobile e-wallets such as Paytm, Google Pay, and PhonePe. Brokers such as HDFC Securities and Motilal Oswal also have an option for digital gold investing.

Currently there are three companies that offer digital gold investment options in India-

  1. Augmont Gold Ltd.
  2. MMTC-PAMP India Pvt. Ltd. a joint venture between state-run MMTC Ltd. and Swiss firm MKS PAMP.
  3. Digital Gold India Pvt/ Ltd with its SafeGold brand. 

Apps and websites like Paytm, G-Pay, etc only provide a platform for metal trading companies SafeGold and MMTC PAMP. Once you invest in digital gold, these trading companies purchase an equivalent amount of physical gold and store it under your name in secured vaults.

But is the process actually as easy and convenient as it sounds?

Let’s take a look at how you can invest in Digital Gold

How to trade in Digital Gold?

First, you visit any of the platforms which offer digital gold investment such as Groww, Paytm, HDFC Securities, G-Pay, Motilal Oswal etc.

Once you are on their platform, you perform the following steps:

  1. Enter an amount in ₹ or grams – You can buy gold of a fixed worth, or buy by weight at the live market rate.
  2. Choose your payment method – Once you complete the KYC process, you will have multiple payment options to choose from such as an account, card, or wallet.
  3. Store your gold in a secured locker – Your account is updated instantly, and can be accessed 24/7.
  4. Sell whenever you want – You can choose to sell your gold digitally itself to the platform whenever you want.
  5. Take physical delivery of the gold – In case you chose to not sell the gold, you can request for doorstep delivery of your gold in the form of coins or bullion. Note: Delivery fees are applicable.

Benefits of Investing in Digital Gold:

  • You can take physical delivery of the gold at your doorstep.
  • You can invest an amount as low as Re.1.
  • Digital Gold investment can be used as collateral for online loans.
  • Digital Gold investment is genuine and the purity is 24K 99.5% for SafeGold and 999.9 in case of MMTC PAMP purchases.
  • Your purchase is stored safely and is also 100% insured.
  • You can exchange digital gold for physical jewellery or gold coins and bullion.

Disadvantages of Investing in Digital Gold:

  • Limit of Rs.2 lakhs for investment on most platforms.
  • Lack of an official government-run regulating body such as RBI or SEBI.
  • Delivery and making charges are further applied to the price of gold.
  • In some cases, companies only offer a limited storage period, after which you either have to take physical delivery or sell the gold.

Why Gold is shining during a pandemic?

Price on 1st Jan 2020Price as of 28th Oct 2020Returns %
Rs.39,100Rs.52,30033%

Gold acts as a safety net during times of crisis. Let us take the recent Covid19 crisis as an example to corroborate the former statement.

A nationwide lockdown meant furloughs and increased debt burden for consumers and businesses alike. To keep the economy growing, the government and the Reserve Bank of India had to increase spending while limiting growing debt levels.

Such measures came by way of a Fiscal Stimulus and Atma Nirbhar Bharat packages.

digital gold investment

This essentially meant more money supply which put more cash in the hands of the people of India. This oversupply reduces the purchasing power of the currency and fears of rising inflation grows rampant.

But Gold as an asset class preserves the purchasing power against falling currencies. As a result, the demand for Gold increases and hence with that comes an increase in Gold prices.

This vicious cycle of increased debt burdens leading to a need for stimulus packages always results in a weakening purchasing power of the currency or inflation. So during uncertain times, Gold truly shines!

Frequently Asked Questions

Is it safe to invest in digital gold?

Digital gold may look like a good option for those who want to buy physical gold for consumption, as they don’t have to worry about the storage.

Is it profitable to purchase digital gold?

You can do digital gold investment from several mobile e-wallets such as Paytm, Google Pay, and PhonePe. Brokers such as HDFC Securities and Motilal Oswal also have an option for digital gold investing.

Which is better? Digital gold or gold fund?

Digital gold is linked to the live commodity price whereas Gold bonds, ETFs and Gold funds only give you the exposure to the commodity’s market performance.

Which gold scheme is best?

if you want to invest in gold then Sovereign gold bonds are decent investment . You get capital appreciation for gold +2.5% annual interest which is much better than holding physical gold where you have to locker fees.

Conclusion

There is little doubt that Gold as an investing class should make up a small part of our portfolios. But there are better options to invest in gold such as Sovereign Gold Bonds and Gold ETFs rather than going for Digital gold investment.

The key reason being that gold should be a part of a long term portfolio. In that sense, it is better to go with gold bonds as they pay an additional 2.5% interest. But since bonds are less liquid, for short term hedges, investing in Gold ETFs is a better option as they fall under the regulatory body of SEBI.

Once the investment limit of Rs.2 Lakhs and a regulatory body is appointed, Digital Gold would make for an appealing investment for those who prefer investing in physical gold.

This Dhanteras you can take advantage of our Diwali off and learn how to invest in Gold and other financial assets:

  • You can avail 35% off on Webinars, Code- DIWALI35
  • You can avail 35% off on the Recorded courses, Code- DIWALI35
  • You can avail 15% off on Live courses , Code- DIWALI15
  • You can also avail 20% off on Annual Membership and StockEdge Club, Code-DIWALI20
  • You can also avail 30% off on StockEdge Premium Plans, Code-DIWALI30

Wishing you all Happy Diwali!

Happy Learning!

Tags: basicenglishgold investment plansinvesting in gold
ShareTweetSend
Get Kotak Offer Get Kotak Offer Get Kotak Offer
Previous Post

The Complete Guide on Sector and Industry Analysis

Next Post

Fundamental Analysis of Company – Importance, Advantages & Example

Elearnmarkets

Elearnmarkets

Elearnmarkets (ELM) is a complete financial market portal where the market experts have taken the onus to spread financial education. ELM constantly experiments with new education methodologies and technologies to make financial education effective, affordable and accessible to all. You can connect with us on Twitter @elearnmarkets.

Related Posts

How to Invest in Shares: A Beginner’s Guide 5
Basic Finance

How to Invest in Shares: A Beginner’s Guide

September 27, 2023
25.6k
Top 9 Types of Trading Order 6
Basic Finance

Top 9 Types of Trading Order

September 22, 2023
36k
Online Stock Market Trading: Everything You Need to Know 7
Basic Finance

Online Stock Market Trading: Everything You Need to Know

September 20, 2023
817
How this 28-year-old became a Successful Stock Picker! 8
Capital Markets

How this 28-year-old became a Successful Stock Picker!

September 22, 2023
1.1k

Comments 2

  1. Tron based Smart Contract MLM says:
    3 years ago

    Thanks for the post!

    Reply
    • Sakshi Agarwal says:
      3 years ago

      Hi,

      We are glad that you liked our blog post.

      Thank you for Reading!

      Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Elearnmarkets Logo

Follow Us

Facebook-f Twitter Instagram Linkedin-in Youtube Telegram

Register on Elearnmarkets

Continue your financial learning by creating your own account on Elearnmarkets.com

Register Free Account

Download App

Playstore logo
Download on app store

Categories

  • Basic Finance
  • Derivatives
  • Financial Planning
  • Fundamental Analysis
  • Technical Analysis
  • Marketshala
  • Miscellaneous

Popular On Elearnmarkets

  • Market Superheroes:
  • Vivek Bajaj
  • Chetan Panchamia
  • Ashish Kyal
  • Premal Parekh
  • Abhijit Paul
  • Jegan
  • Sivakumar Jayachadran
  • Vishal Malkan
  • Jyoti Budhia
  • Vivek Gadodia
  • Vishal Mehta
  • Piyush Chaudhry
  • Santosh Pasi
  • Gomathi Shankar
  • Market Superheroes:
  • Vivek Bajaj
  • Chetan Panchamia
  • Ashish Kyal
  • Premal Parekh
  • Abhijit Paul
  • Jegan
  • Sivakumar Jayachadran
  • Vishal Malkan
  • Jyoti Budhia
  • Vivek Gadodia
  • Vishal Mehta
  • Piyush Chaudhry
  • Santosh Pasi
  • Gomathi Shankar
  • Courses:​
  • Options Trading
  • Dow Theory
  • Momentum Trading
  • Stock Investing
  • Stock Market for Beginners
  • Harmonic Chart Patterns
  • Algo Trading
  • Elliot Wave Theory
  • Advanced Excel
  • Cryptocurrency
  • NSE Certification Course
  • Courses:​
  • Options Trading
  • Dow Theory
  • Momentum Trading
  • Stock Investing
  • Stock Market for Beginners
  • Harmonic Chart Patterns
  • Algo Trading
  • Elliot Wave Theory
  • Advanced Excel
  • Cryptocurrency
  • NSE Certification Course
  • Webinars:
  • Bank Nifty Scalping
  • Intraday Trading Strategies
  • Options Trading Strategies
  • Options selling
  • Price Action
  • Relative Strength
  • Tax Planning
  • Options Buying
  • Growth Stocks
  • Portfolio Management
  • Relative Strength Index
  • Risk Management
  • Renko Charts
  • Crude Oil
  • Traders Psychology
  • Moving Average
  • Multibagger Stocks
  • Webinars:
  • Bank Nifty Scalping
  • Intraday Trading Strategies
  • Options Trading Strategies
  • Options selling
  • Price Action
  • Relative Strength
  • Tax Planning
  • Options Buying
  • Growth Stocks
  • Portfolio Management
  • Relative Strength Index
  • Risk Management
  • Renko Charts
  • Crude Oil
  • Traders Psychology
  • Moving Average
  • Multibagger Stocks
  • Free Learning Modules:
  • Intraday Trading
  • Options Scalping
  • Swing Trading
  • Financial Modelling
  • RSI Indicator
  • Bollinger Bands
  • Pricing of Futures
  • Personal Finance
  • Initial Public Offerings (IPO)
  • Value Investing
  • Technical Indicators
  • Candlesticks
  • Chart Patterns
  • Option Greeks
  • ELSS Funds
  • Banking and Insurance
  • Real Estate
  • Gold
  • Free Learning Modules:
  • Intraday Trading
  • Options Scalping
  • Swing Trading
  • Financial Modelling
  • RSI Indicator
  • Bollinger Bands
  • Pricing of Futures
  • Personal Finance
  • Initial Public Offerings (IPO)
  • Value Investing
  • Technical Indicators
  • Candlesticks
  • Chart Patterns
  • Option Greeks
  • ELSS Funds
  • Banking and Insurance
  • Real Estate
  • Gold
  • Book Summaries:
  • Rich Dad Poor Dad
  • Psychology of Money
  • The Intelligent Investor
  • The Richest Man in Babylon
  • Think and Trade Like a Champion
  • Value Investing and Behavioural Finance
  • Trading in the Zone
  • Learn to Earn
  • Book Summaries:
  • Rich Dad Poor Dad
  • Psychology of Money
  • The Intelligent Investor
  • The Richest Man in Babylon
  • Think and Trade Like a Champion
  • Value Investing and Behavioural Finance
  • Trading in the Zone
  • Learn to Earn
  • Tools:
  • CAGR Calculator
  • SIP Calculator
  • eLearnOptions
  • Future Value Calculator
  • Present Value Calculator
  • Atal Pension Yojana
  • Cost of Delay Calculator
  • Become a Crorepati
  • Tools:
  • CAGR Calculator
  • SIP Calculator
  • eLearnOptions
  • Future Value Calculator
  • Present Value Calculator
  • Atal Pension Yojana
  • Cost of Delay Calculator
  • Become a Crorepati

© 2023 Elearnmarkets. All Rights Reserved

  • Visit Elearnmarkets
  • Courses
  • Webinars
  • Financial Guides
  • Get Free Counselling
  • Visit Elearnmarkets
  • Courses
  • Webinars
  • Financial Guides
  • Get Free Counselling

Get Elearnmarkets App

No Result
View All Result
  • Article Categories
    • Basic Finance
    • Derivatives
    • Financial Planning
    • Fundamental Analysis
    • Technical Analysis
    • Marketshala
    • Miscellaneous
  • Language
    • Hindi
    • Bengali
    • English
  • Courses
  • Webinars
  • Stories

© 2020 Elearnmarkets All Rights Reserved

Guide to Basics of Stock Investing
Learn to interpret the financial performance and health of a company.
Download Now
View Course Details