How to Buy, Sell or Invest in Digital Gold?

Indians love their gold. Gold is a versatile metal that serves many purposes such as aesthetics, investment, financial security, and as a symbol of prosperity. However, buying, storing, and selling physical gold come with many challenges. Finding a trusted and genuine jeweler is difficult as the quality and purity of this metal could vary with different jewelers. One has to be careful about securely storing the gold. Storing the gold at home is risky and renting a bank locker means paying extra as locker rent. And in the event of a financial crisis, selling off gold to generate funds is also a daunting task. You have to find a genuine buyer, negotiate for rates and physically hand over the gold. Not anymore. The world is changing and technology has made our lives digitalized. Now, you can buy 24k or 99.5k digital gold online through digital companies without having to physically hold the gold.

What is a Digital Gold Investment?

As mentioned earlier, Digital gold is a virtual way of buying and investing in 24k or 99.5 percent purity gold without having to physically hold the gold. New-age fintech companies are using technology to provide their customers with a delightful experience. Investors looking to invest in physical gold can now do so conveniently online. The company providing this service acts as the intermediary that buys the physical gold on your behalf and stores it in insured and secured vaults.

Digital Gold is the digitalized take on the traditional way of buying gold. The entire process, from application to allocation, is conveniently completed with the click of a few buttons. All you need is a smartphone or a computer and your digital gold investment is done. And the most attractive feature is that you can buy gold for as low as Re 1 which isn’t possible in the traditional way of purchasing gold. And when you redeem the digital gold investment, you can either have the equivalent physical gold safely delivered to you or the redeemed amount is transferred to your bank online.

Where can you buy Digital Gold from?

At present, you can buy digital gold from several mobile e-wallets, a few selected brokers also have an option for digital gold investing.

The thing to note is that an investor must pay a 3% GST when purchasing digital gold for the expenses such as the cost of storage, insurance, and trustee fee, similar to when buying physical gold.

How to Buy Digital Gold?

Buying digital gold is very easy and you can do it on the digital gold company's mobile application and/or its website. The process involved could vary for different platforms but the basic steps are given below:

Step 1: Open your preferred digital gold platform’s mobile app or visit their website.
Step 2: Go to the search bar and search the term Gold.
Step 3: Click on ‘Buy Gold’ or a similar section (The current digital gold price is displayed along with the applicable tax).
Step 4: Select from the options – Buy in Amount or Buy in Grams (Some platforms allow either of the two or both).
Step 5: Enter the amount you want to buy and click on ‘Proceed’. (There could be a daily limit on the transaction amount).
Step 6: Select your preferred payment method out of different mobile wallets, UPI, Net Banking, Debit, or Credit Card.
Step 7: Make the payment and your digital gold purchase is now complete.

How to Sell Digital Gold?

Step 1: Open the mobile app or the website from where you bought the digital gold.
Step 2: Go to the search bar and search the term Gold.
Step 3: Click on 'Sell Gold', 'Redeem Gold', or a similar section (The current digital gold price is displayed along with the applicable tax).
Step 4: Select from the options – Enter the amount or weight of the gold you want to sell.
Step 5: Click on 'Proceed'.
Step 6: Choose from 'Take Physical Delivery of Gold' or 'Redeem and Transfer Funds'.
Step 7: If you select 'Redeem and Transfer Funds', the redemption amount is transferred to your linked bank account. If you select 'Take Physical Delivery of Gold', an equivalent weight of the sold digital gold in the form of coins and bars is securely delivered to you.
Step 8: Redemption/sale of your digital gold is now complete.

Conclusion

Digital Gold

is a smart gold investment that does away with many issues associated with physical gold purchases. The ease of buying and selling has made digital gold investment such an attractive option.