Digital Gold Investment: With time the methods of investing in gold are changing. Apart from buying jewellery, coins or bars, now investment in digital gold has also started increasing. However, there is also a risk of fraud in this. SEBI has issued an alert on this saying that digital gold and e-gold products do not come under the securities market framework. These are different from SEBI regulated gold exchange traded funds or ETFs and electronic gold receipts.
SEBI alerted
SEBI has further warned that many online platforms are nowadays seen offering investment in digital gold or E-Gold, but due to not being regulated, there is a risk of investing in them. Since digital gold does not come under the purview of SEBI regulation, if any irregularity or fraud occurs while investing in digital gold or e-gold products, there will be no protection or help from SEBI.
What is digital gold?
In digital gold you buy or sell gold electronically. Digital gold investment can be done easily from home through mobile apps or online platforms. It is being promoted a lot these days. In this, you can start investing with a minimum of Rs 1 and buy or sell gold depending on the price of gold in the market. However, many digital gold platforms are not SEBI regulated. In such a situation, in case of default, you will not get any protection from SEBI.
Investing in these is safe
SEBI said that if one has to invest in gold, then many ways are already available, which also come under the purview of SEBI rules and there is no risk in investing in it. If you want, you can invest in gold exchange traded funds (Gold ETFs), electronic gold receipts (EGRs) and exchange-traded commodity derivative contracts through SEBI-registered intermediaries.
Many big brands are selling digital gold
Nowadays many companies like Tanishq, Aditya Birla Capital, PhonePe, Caratlane, MMTC-PAMP, Joy Alukkas and Shriram Finance are selling digital gold. However, there is a risk factor in this also because SEBI is not regulated. However, Tanishq and MMTC-PAMP have claimed on their website that they are offering digital gold with the SafeGold brand. This is a reliable way to buy 24 carat pure gold. Investors can start investing in these with Rs 10-100.
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