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A huge surge has been seen in the purchase of digital gold around Dhanteras. In October, sales of digital gold through UPI increased by 62 percent to a new record. Ease of investment, small amount investment and demand for festivals have further increased the popularity of buying gold on smartphones.
New Delhi. Even before Dhanteras, the purchase of digital gold gained momentum across the country. According to National Payments Corporation of India (NPCI) data, the value of digital gold purchases through UPI increased by 62 percent to Rs 2,290 crore in October, while it was Rs 1,410 crore in September. The ease of buying gold digitally, investment in small amounts and the convenience of instant payment attracted customers.
Continuously increased demand on UPI transactions and apps
Sales of digital gold on apps like Paytm, PhonePe, Jar, Amazon Pay, Google Pay and Tanishq have been continuously increasing throughout the year. While the total purchase in January was Rs 762 crore, in October it increased to Rs 2,290 crore. Transactions alone increased from 103 million in September to 116 million in October – an increase of 13%. Gold prices have increased in recent times. Considering it as a safe investment and the convenience of buying gold in small portions has further strengthened this trend.
Concern about regulation, but no impact on sales
In early November, SEBI had warned investors that digital gold is not controlled by any regulatory body in the country. Many social media influencers also advised customers to be careful that if platforms selling digital gold are closed, customers may face difficulties. Despite this, many digital gold companies say that despite SEBI’s warning, there has been no decline in investors’ purchases. It is clear from this that people are giving more importance to the convenience and availability of digital gold.
Who keeps the customers’ gold and who is the better option?
Digital gold is mostly tokenized through fintech apps by companies like MMTC-PAMP or SafeGold. Customers can sell their gold anytime or get it in physical form. However, GST, storage charges and platform fees are applicable on digital gold. Gold ETFs, on the other hand, are regulated by SEBI, are less expensive and offer fractional ownership. But a demat account is necessary for investing in it, that is why a large number of people prefer the easy option i.e. digital gold. Digital gold may be running without regulation, but easy investment, starting with small amounts and the spirit of festivals have made it the first choice of people.
