Investing in digital gold? Keep these important things in mind

February 27, 2021 9:28 AM

With a number of online platforms and stock brokers offering digital gold today, purchasing gold online is just a few clicks away.

Historically, gold is known to give high returns and has been one of the best-performing asset classes for years.

Indians’ love for gold, both for consumption and investment, isn’t a hidden fact. India is the second-largest consumer of gold in the world after China. The yellow metal has always been considered one of the most secure investment options.

Portfolio diversification is the need of the hour for a modern-day investor and digital gold is one of the growing popular options to consider. Diversification is not a one-time practice but a constant process that investors should follow, and take into consideration all financial goals and ongoing situations to build a suitable portfolio.

Historically, gold is known to give high returns and has been one of the best-performing asset classes for years. With a number of online platforms and stock brokers offering digital gold today, purchasing gold online is just a few clicks away.

Here is a quick guide to acquaint you with digital gold investing in India. Read on!

Where to buy: Digital gold is sold by authorized vendors or producers which have partnerships with various banks, broking firms and fintech companies, that are intermediaries between the buyer and the seller. However, before purchasing Digital Gold from a platform, ensure that you check the features like purity of gold, hallmarking, refund policy and the vendor.

Transparency & real-time updates: With easy internet access, investors are able to buy Digital Gold at real-time market rates. Any changes in gold pricing in the market are almost immediately reflected on these platforms, allowing the buyer to make an informed decision.

Making & delivery charges: The biggest advantage of Digital Gold is that it is devoid of making charges, which means the customer bears only the cost of gold at the time of purchase. However, after the completion of the investment period or when the investor decides to sell the digital gold, delivery and making charges will be incurred, just like physical gold.

Tax on digital gold: When a customer buys Digital Gold, a 3% goods and services tax (GST) is levied. Also, gains from digital gold are taxed just like physical gold, gold mutual funds or gold ETFs.

Digital Gold provides both affordability and accessibility, and anyone with a smartphone can purchase gold online for as low as Rs 1 . So, what’s holding you back? Take the first step of investing in Digital Gold today!

(By Puneet Maheshwari, Director , Upstox)

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