Digital gold frees investors of two major irritants associated with buying the precious metal: storage and investment size. Storing physical gold always carries the risk of theft, while the cost of buying 10 gm 24K gold is upwards of Rs 50,000. These two factors dampens the spirit of investment in the commodity. Digital gold solved both these problems for investors, freeing them of burden of physical storage and giving them freedom to buy units for as low as Re 1.
What is digital gold?
It is a secure online investment instrument that allows investors to purchase certified 24-Karat pure gold. The buyer gets only digital units from sellers, who store an equal amount of yellow metal in a secure vault on behalf of the customer. The instrument thus suits well to the needs of new-age investor, who want prefer mobility, flexibility and speed over anything.
While the case for investing in digital gold for the purpose of diversification of portfolio or any other investment needs is strong, investors will do well to note that it is not the most efficient way of investing in the precious metal. If the purpose is only investing, nothing beats the Sovereign Gold Bonds. You can read all about the risks of investing in digital gold here. (https://www.timesnownews.com/business-economy/personal-finance/digital-gold-investing-know-risks-other-limitations-article-95040308)
Those convinced about digital gold may read on to know how to use wallet apps such as Google Pay, PhonePe and Paytm to invest.
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In India, you can buy digital gold from several mobile e-wallets such as Paytm, Google Pay and PhonePe. Currently, there are three companies that offer digital gold in India- Augmont Gold Ltd, MMTC-PAMP India Pvt. Ltd a joint venture between state-run MMTC Ltd. and Swiss firm MKS PAMP and Digital Gold India Pvt Ltd with its SafeGold brand. 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.
Google Pay
Google Pay lets you digitally buy and store gold from MMTC-PAMP India Pvt. Ltd. using your existing payment methods.
Open Google Pay.
Tap New.
In the search bar, enter “Gold Locker.”
Then, search for that term.
Tap Gold Locker.
Tap Buy.
The current market buying price of gold (including tax) appears. This price stays locked for 5 minutes after you begin the purchase, as the buying price may change throughout the day.
Enter the amount of gold you want to buy, in INR.
Tap Check mark Tick mark
Select your preferred payment method in the window that appears
Tap Proceed to pay
After the transaction is confirmed, the gold should appear in your Locker within a few minutes.
Paytm
On Paytm app:
Open the Paytm app on your mobile phone
Go to the All Services section
Go to the search bar and search the term Gold
Click on Gold
Select from the options – Buy in Amount or Buy in Grams
Enter the amount you want to buy and click on Proceed
Complete the purchase to buy digital gold. You can make payment from Paytm Wallet, UPI, Net Banking, Debit or Credit Card
Also Read : Digital gold vs physical gold: Which investment option is better this Diwali?
On Paytm website:
Go to the Paytm Gold page on Paytm
Select from the options – Buy in Amount or Buy in Grams
Enter the amount you want to buy and click on Proceed
Complete the purchase to buy digital gold. You can make payment from Paytm Wallet, Net Banking, Debit or Credit Card
In case you want physical delivery of of units bought on Paytm, you can do so too. Paytm will deliver physical gold after charging making and delivery charges, if applicable, according to its website.
PhonePe
Open the PhonePe app (New users need to download the app first)
Click on “My Money”
Under Investment, click on the Gold Icon
Select Gold provider — SafeGold OR MMTC-PAMP
Enter the amount of Gold you want to buy (in rupees or grams)
Click on “Proceed To Payment”
Use your preferred payment method — UPI/Debit Card/Credit Card/Wallet to complete the transaction.
