Both digital and physical gold have advantages and disadvantages. If you only want to buy gold for financial purposes, you can buy digital gold instead of physical gold. Digital gold, on the other hand, is not regulated and has a time limit on how long it can be held digitally. Digital gold adds an additional layer of security.
Physical gold is traditionally considered a “store of value”, providing security and protection. However, there is always fear and risk of physical loss or theft. Three companies offer digital gold in India: Augmont Gold, MMTC-PAMP and SafeGold, which is the retail brand of Digital Gold India. Portals such as Paytm, Groww and Gpay, together with jewelers that offer digital gold as an investment option on their platforms, have essentially partnered with these entities.
Only the three declared companies are legally allowed to sell gold and buy it back from the customer on their platforms. Efficient and able to track gold prices more closely than gold ETFs. However, e-gold loses to gold ETFs when it comes to taxes. Later, you can choose to receive this digital gold in physical form at your address or even sell it digitally without any additional cost.
To know the current value of your investment in a gold ETF, you must track the net asset value of that fund, but in the case of electronic gold, the value is that of the current price of gold. Once you invest in digital gold, these trading companies purchase an equivalent amount of physical gold and store it under your name in secure vaults. In terms of cost, buying digital gold generates 3% GST on each purchase, while ETFs and funds involve annual charges of 0.5 to 1%. When you are on different digital gold platforms, you may notice differences in price.
The platforms offer digital gold at prices in real time, so investors don't have to worry about price differences. Some of the gold ETFs available on NSE are the Nippon India Gold BEes ETF, the Axis Gold ETF, the HDFC Gold Exchange Traded Fund, the ICICI Prudential Gold Exchange Traded Fund, the Kotak Gold Coded Fund and Quantum Gold Fund, among others. The possession of paper gold through digital media has increased and digital gold is rapidly becoming an easier, simpler and more cost-effective way to participate in the potential of gold as an asset class. Therefore, investors who prefer to make small investments in gold at their convenience can invest in digital gold.
Keep in mind that when it comes to digital gold versus physical gold, digital gold takes the lead, as it offers all of these benefits, in addition to the main benefits, which, in and of themselves, make gold a valuable investment. Once again, digital gold involves zero storage costs: you keep it in your digital wallet and your supplier keeps it in a secure vault. The net profit of 95,578€ of Invest Now Invest Now Invest Now Invesco India Gold Fund returns of up to 1 year are in absolute terms %26 and in 1 year are calculated based on the CAGR (compound annual growth rate). Gold ETFs are also the basis for fixed-capital gold mutual funds that help you invest your money in gold.
Buying and selling digital gold is done completely online without the hassle of physically holding the asset. Many investors follow the SIP approach to accumulating gold in small quantities on a regular basis to achieve long-term goals.