Why are Digital Gold Investments So Popular?

Indian families have been passing down gold jewellery coins for generations to ensure financial safety for future generations. However, the young generation is no longer buying physical gold items; instead, they have moved towards digital gold investments. So, Indians are no stranger to the concept of gold as an investment. 

With the rising popularity of digitalization came the concept of digital gold. The idea is simple. Investors can buy a small or large amount of gold from the companies in a digital form. They can opt to get the real gold delivered to their home or keep it completely digital. The digital gold companies will sell you the gold at the current market price and store the physical gold on your behalf of you in their secure storage. Once you are ready to sell, you can sell the gold digitally and get a return on your investment. 

Digital gold offers several advantages that physical gold doesn’t. These advantages have made digital gold as popular as it is today. 

Digital Gold

Here are some reasons why digital gold is the future of investment.


1. Convenience

The main advantage of investing in digital gold over physical gold is convenience. In order to buy physical gold, you must first decide how much you can afford and how long you intend to keep it. Then you have to find a way to store the gold securely. Moreover, if it’s gold jewellery, you have to pay extra making charges and occasional maintenance charges. 

When you buy digital gold, you don’t have to think about any of these things. The digital gold companies have simplified the buying process. They will show you the current price of gold and allow you to choose any amount of gold starting from around Rs. 100. 

Moreover, you don’t have to fill out any extensive paperwork or agreement to buy digital gold. As soon as you pay for it, the gold is yours. 

2. There is no chance of fraud 

When you buy physical gold, there is no guarantee that the gold is pure. So, when you try to sell the gold back, you may get a much lesser price than you expected. This type of fraud is quite common, especially with gold jewellery.

Since you don’t have the physical gold in your possession, you don’t have to prove that it’s pure. However, when you buy digital gold, you can know for sure that the gold is pure 24k. Even if you decide to get the real gold delivered to your home, you can be sure that it’s pure gold because the government regulates it.

3. It’s a stable investment

Gold prices have increased steadily over the past decade or so, and it is predicted that gold prices will continue to rise steadily. So, if you invest in gold now, you can expect to get a good return in a decade or so later. The same is true with digital gold as well.

When you buy digital gold, you can leave it to grow in value for years without having to maintain it. You can also sell it whenever you want, so it’s a liquid investment.

4. No need for storage

Gold is extremely valuable, so you must protect it and keep it in a secure place whenever you buy physical gold. Most people buy a bank locker to store their gold jewellery, bullions, coins, etc. But the cost of a bank locker can add up over the years. Even if you store it at home, there is always a risk of theft.

With digital gold, these extra costs and risks are eliminated. So you can enjoy the same benefits of investing in gold without being responsible for storing or securing it.

5. Anyone can invest in digital gold

Digital gold companies have made it quite easy for anyone to invest in gold. Instead of offering coins or bars, they offer specific values of gold. Most companies offer digital gold investments from as low as Rs. 100. So, almost anyone can invest in digital gold, regardless of their financial situation.

Digital gold is sold in several online marketplaces, so anyone with a smartphone or laptop can purchase digital gold.

In conclusion

The price of gold goes up steadily, so whether you invest in physical gold or digital gold, you’ll surely get a good return. However, digital gold is a much better option for anyone because you don’t have to take the responsibility of storing it. Moreover, digital gold has no chance of fraud or theft, making it a secure investment option.

Even if you’re a novice investor, you can never go wrong with a digital gold investment. In fact, anyone can invest in digital gold and expect to get a return after a few years. It’s a simple, easy and convenient way to start your investing journey.

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