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In this video of Josh Money, Aastha Sethi is talking about Digital Gold. How can we purchase digital gold and how digital gold is beneficial to us?
Digital gold is a virtual method of buying and investing in yellow metal without having to physically hold the gold. You can buy it online. And, the minimum buys or sell value is one rupee. Digital Gold is bought online and it is stored in insured vaults by the seller on behalf of the buyer. The metal purchased is 24k gold, or 99.9 percent pure. Also, the buyer can be assured of its purity as it is certified by government-licensed agencies.
Digital gold: Pros and cons
Pros:
· Investor can take physical delivery of the gold at his doorstep
· Invest an amount as small as Re 1
· Can be used as collateral for online loans
· Digital gold is genuine and the purity is 24K
· It is stored safely and is 100% insured
· It can be exchanged for physical jewelry, gold coins, and bullion
Cons:
· Rs 200,000 limit for investment on most platforms
· Lack of official regulating body like RBI or Sebi
· Delivery and making charges can apply
· Sometimes, companies offer a limited storage period.
In India, there are three main companies that offer digital gold — MMTC-PAMP India, Augmont Gold Ltd, and Safe Gold India.
Meanwhile, applications such as PhonePe, Spenny, G-Pay, and Paytm offer a platform for investing in digital gold.
A Gold ETF is an exchange-traded fund (ETF) that aims to track the domestic physical gold price. They are passive investment instruments that are based on gold prices and invest in gold.
In short, Gold ETFs are units representing physical gold which may be in paper or dematerialized form. One Gold ETF unit is equal to 1 gram of gold and is backed by physical gold of very high purity. Gold ETFs combine the flexibility of stock investment and the simplicity of gold investments.
Gold ETFs are listed and traded on the National Stock Exchange of India (NSE) and Bombay Stock Exchange Ltd. (BSE) like a stock of any company. Gold ETFs trade on the cash segment of BSE & NSE, like any other company stock, and can be bought and sold continuously at market prices.
Buying Gold ETFs means you are purchasing gold in an electronic form. You can buy and sell gold ETFs just as you would trade in stocks. When you actually redeem Gold ETF, you don’t get physical gold but receive the cash equivalent. Trading of gold ETFs takes place through a dematerialized account (Demat) and a broker, which makes it an extremely convenient way of electronically investing in gold.
Because of its direct gold pricing, there is complete transparency on the holdings of a Gold ETF. Further due to its unique structure and creation mechanism, the ETFs have much lower expenses as compared to physical gold investments.
In Gold, we can do SIP as well. In this Josh Money video, We discussed Gold SIP Calculator. How can we calculate the number of grams and choose the carats of gold with the help of the SIP Calculator?
We will get to know all the details about Digital Gold Investment in this video.
Digital Gold Investment 2022 | Gold ETF & Digital Gold In Hindi | Invest In Gold Online | Josh Money