Dhanteras is approaching rapidly in India. There are many folklore and legends associated with the festival and buying gold is one of them. The digital age opens a new gate for consumers. Wondering to know about the new way? Continue reading to find out.
New Delhi: Gold is typically regarded as a secure investment in India and the majority of the rest of the globe, particularly during times of financial market volatility. Due to the fact that gold has an inverse relationship with stock and forex assets, when the price of the precious metal rises, the value of other securities is said to fall.
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Investors are starting to lodge their money in gold as the stock market and domestic currency are under pressure from the strong dollar and increasing inflation. There are numerous ways to invest in gold in the digital age. Parking money in digital gold is a popular investment option in addition to physical gold.
Generally speaking, gold ETFs, gold bonds, and gold funds are the three main ways to invest in digital gold. Government-backed securities known as “sovereign gold bonds” are measured in grammes of gold, with one gramme of gold equaling one unit of the bond.
These bonds are indexed to spot gold prices; upon subscription, one pays the bond’s issue price, and upon maturity, the bond is redeemed for cash.
Physical gold that is kept in the safes of custodian institutions is used to back gold exchange-traded funds (ETFs). The allocation of the value of 1 gramme of gold to each ETF unit by the asset management firm determines the value of each unit. The net asset values of mutual funds’ gold funds, which invest in gold ETFs, are announced each day at the close of trading.
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The 24-carat precious metal can be purchased virtually with digital gold, which does not require physical possession. A digital invoice for the transaction will be provided by the vendor when you purchase digital gold using UPI or online payment. The business from whom you purchase digital gold keeps the gold in a secure vault.
Investments in digital gold can be made as low as Re 1. From the convenience of your own home, you may buy or sell digital gold, which provides hassle-free instant liquidity. However, the majority of platforms impose a restriction of Rs 2 lakh for investments in digital gold.
Digital items are easily purchased with a few clicks. The fact that digital gold can be purchased for modest amounts without having to worry about safe storage at home adds to its attractiveness. Additionally, you can do it without a broker or a Demat and trading account.
