Invest even Re 1 in Gold! Digital Gold Investment in India risks, redeem, returns queries explained

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Updated: Jul 18, 2020 2:27 PM

Digital Gold Investment in India: Gold is an evergreen investment option. It is considered a safe investment for times like the present when day-to-day economic lives have been disrupted by COVID-19 pandemic.

digital gold investment in indiaKnow how to make digital gold investment in India. Image: PTI

Digital Gold Investment in India: Gold is an evergreen investment option. It is considered a safe investment for times like the present when day-to-day economics of life has been disrupted by COVID-19 pandemic. However, when it comes to the process of making Gold investment, a lot of people are still wondering whether to invest in digital gold or physical gold. Well, believe it or not, digital gold investment has gained ground rapidly and it is likely to be the trend for long. Digital Gold has redefined the Indian precious metals industry by making investment more accessible, responsible, and trustworthy gold in India. Not many are aware of the fact that now you can invest as little as re 1.

Digital Gold is said to bring transparency and good governance in buying and selling of Gold. To find the answer related to several questions, FE Online talked to MMTC – PAMP, which offers the consumer access to buy/sell/redeem/transfer 999.9 purity certified gold for as low as Re 1, anytime at live prices linked to international rates.

MMTC-PAMP is the only LBMA (London Bullion Market Association) accredited Gold refinery in India. Here’s what they said:

Q: How and where I can invest even Re 1 in Gold?

A: MMTC-PAMP offers one of the world’s first gold accounts that can be accessed digitally. A customer can enjoy the luxury to buy/sell/redeem/transfer 999.9 purity certified gold for as low as Re 1, anytime at live prices linked to international rates, uniform across India, which are available 24*7, 365 days a year.

MMTC-PAMP gives the customers an option to buy and accumulate gold in small quantities and request for a physical delivery later. The service is available on digital platforms such as Paytm, Google pay, Fisdom along with financial institutions like Motilal Oswal, and HDFC bank security

Q: What are the risks involved in digital gold investments?

A: MMTC-PAMP’s Digital Gold is regarded as one of the safest ways of purchasing gold, as for every gram of digital gold purchased, MMTC-PAMP stores the equivalent quality and quantity of physical gold in own vaults. The gold bought by the customers is kept in the high-security vault, and is fully insured for any eventuality, with “IDBI Trusteeship Services Limited” (ITSL) as the security trustee.”

There is no change in the physical quantity of Gold when you buy or sell Gold providing transparency and giving full control over the investment to the customer.

Q. Are returns on digital gold investment guaranteed? If yes, then how?

A: The returns on digital gold are largely dependent on the international market, the present gold rate they set, and the amount of money digital gold purchased by an individual. As the demand and price for yellow metal increases, steadily a customer who invested a certain amount today may gain on their investment tomorrow basis the size of their investment and the extent of the price hike.

Q: How can I redeem digital gold? Can I do it 24×7?

A: Customers can redeem the digital gold through the platform from where they bought the gold. They can place the order for delivery by making the payment for making and delivery charges and this facility is available 24*7.

Q: Does MMTC-PAMP sell digital gold? What is the process of buying?

A: MMTC-PAMP is one of the first Indian companies to introduce the concept of virtually purchasing/ investing gold to Indian customers. In order to purchase/invest in digital gold, a customer needs to have fin-tech payment gateway applications such as Paytm and Google Pay. They can also access digital gold through Motilal Oswal and HDFC security’s mobile application, website, etc.

There is a limit of INR 1.99 lacs per day in the absence of PAN card, if the customer provides the PAN card then they can buy beyond this limit as well. Non-individuals cannot buy from the platform as of now, we are in the process of enabling this service as well.

Q: How can I be assured of quality while buying digital gold from MMTC-PAMP or other platforms?

A: MMTC-PAMP is the only LBMA (London Bullion Market Association) accredited Gold refinery in India, providing the backend infrastructure, custodian and technology services, and the GAP partner platforms provide the user interface.

Q: Can I redeem digital gold in physical form or cash only?

A: MMTC-PAMP offers flexibility to redeem, sell, or even transfer the digital gold. Customers can redeem accumulated gold in the form of gold coins and bars. Customers can also sell back their gold to MMTC-PAMP through the platform at the rate displayed. The money gets credited into the bank account instantly on the details provided by the customer. We also offer an option to transfer wherein customers can transfer/gift gold balance to any other chosen gold account within the platform.

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