Choice Of Youth- Digital Gold This Dhanteras

Introduction

Gold holds a special value in our culture and traditions. It is considered auspicious to buy gold during the current festive season, especially on Dhanteras.

Traditionally, we have been investing and buying gold in its physical form i.e. jewelry, gold bars, and coins. But with digitalization, our favorite yellow metal has also gone digital. There are various options like sovereign gold bonds (SGBs), Gold ETFs, Gold futures, and Digital Gold.

The millennial generation is keen on investing and buying digital gold rather than physical Gold as physical gold comes with its own cons like storage, theft, making charges, etc.

Before we move ahead, let us know “what is Digital Gold?” Digital Gold refers to the online purchase of Gold which gets credited to the online gold vault of the buyer for which an equivalent quantity of Gold is stored in the insured and secured vaults.

So, if you are thinking to buy Digital Gold this Dhanteras, here’s all that you must know before you buy digital Gold

1. Time:

As this is the peak season when people tend to invest and buy physical gold. For this, people tend to flock to the shops during the opening hours making it overcrowded and thus is time-consuming.

On the other hand, you can purchase Digital Gold from anywhere and anytime on just a click of a button. SGB (Sovereign Gold Bonds) and ETFs can be traded only between 9 AM to 3:30 PM whereas Gold futures can be traded from 9 AM to 11:30 PM.

2. Purity:

Most of the jewelry is made in 22k Gold, whereas Digital Gold is 24 K 99.9 pure. The SGBs, ETFs, and Futures provide 99.5% purity. Y

You can buy pure Gold coins but they come with an additional Cost of Making the product (Making Charges) apart from the GST. Digital Gold involves no making charges and has only GST of 3%.

3. Minimum Investment:

One can start investing in Digital Gold with a minimum of Rs. 10 whereas Physical Gold requires a huge amount to be invested to possess the product.

SGBs require a minimum of 1 gram to be purchased, ETFs Require a minimum investment of Rs. 1000 and future Gold requires a minimum investment of Rs 500/-.

4. Lock-in Period:

Digital Gold, Physical Gold, Gold ETFs, and Gold Futures does not have any Lock-in period whereas there is a lock-in period of 5 years for SGBs.

5. Holding Period:

Physical Gold, Digital Gold, Gold ETFs and Gold Futures do not have any maximum holding time whereas SGB’s have a maximum Holding time of 8 years.

6. Purchase:

Digital Gold can be purchased from authorized platforms like Bright DiGi Gold whereas SGBs can be purchased from the banks and traded on the stock exchange just like Gold ETFs. Gold futures can be traded in the commodity market.

7. Liquidity:

All the options of Gold except SGB are highly liquid investments. You can convert them without any hassle.

8. Converting to Physical Gold:

Digital Gold can be converted into physical Gold at any given point of time whereas SGB can be converted only after 8 years. Gold futures and ETFs are not convertible into physical gold at any given point of time.

9. GST Payment:

All the Gold investments are eligible for 3% GST.

Physical Gold has been an eternal investment for Indians and India is one of the biggest markets for Gold consumption across the Globe.

Digital Gold has emerged as a great opportunity for investors with its USP’s Like low investment of just Rs.10, 24K Gold, Easy Sale and purchase, and no worries about storing the same as it is handled by the Digital Gold Platform provider.

So, This Dhanteras be Smart and Invest wisely in Digital Gold with Bright Digi Gold