Digital Gold: Investing in digital gold has become an easy and popular way to invest in recent years. This is such an online medium through which you can buy gold ranging from Rs 10 to Rs 100. Platforms like PhonePe, Paytm, Google Pay along with companies like MMTC-PAMP and Augmont are providing the facility of investing in digital gold. Apart from this, many jewelery brands like Tanishq are also giving investors the option to invest in digital gold.
Why is digital gold becoming popular?
Investing in digital gold is easy. In this, you can buy or sell gold in minutes through different mobile apps and online platforms. Another reason for increasing interest in it is that you can invest comfortably sitting at home.
Another specialty of this is that there is no need to worry about keeping the gold in a safe place. This is best for those who want to take advantage of the rising price of gold. However, there is risk in this also. Your money can get stuck by using the wrong platform or ignoring the rules. If you are not careful while investing in digital gold, you may suffer huge losses, hence before investing it is important to keep some things in mind such as whether the platform is legal or not, what is the policy of the company etc.
don’t trust everyone
Digital gold is available on many online platforms and wallet apps, but you cannot trust everyone. Some platforms only act as middlemen and do not hold gold stocks. In such a situation, if the company’s server goes down or the platform gets stuck in some problem, your investment may sink.
Before investing, it is important to check whether the company is approved by the Reserve Bank of India or market regulator SEBI or not. Always trust well-known companies like Augmont, MMTC-PAMP or Safegold. Recently SEBI has also warned investors regarding this. SEBI says that digital gold can be purchased on online platforms like Paytm, Google Pay, Phone Pay, but digital gold does not come under any regulation. These are not secured nor are they commodity derivatives, so if the platform defaults, SEBI will not be able to help them.
Take care of time period
Many people keep digital gold for a long time, but they are not aware of its limits and charges. Some platforms allow you to store gold only for 5 years. After that you will either have to take physical delivery or sell it.
Delivery includes tax, making charges and transportation costs. This may reduce your returns, so if you are investing in digital gold, first decide whether it is a short-term or long-term plan. You can also choose options like gold ETF or sovereign gold bonds as they offer both government security and interest.
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