Has it ever struck you that instead of gold you can gift digital gold to your sister this Raksha Bandhan? It not only paves the way for something new but also carries the security that investment in gold implies.
Simplicity and convenience
Put simply, it will give your sister the satisfaction of getting gold as a gift, the convenience of high liquidity, price appreciation, and no storage concern. You don’t even need to visit any retailer or trader. You can buy it using your computer or even a mobile app. But what is digital gold?
Gold minus headaches
Traditionally, Indians have consumed gold in physical forms – mostly in the form of jewellery and a small fraction in the form of bars and coins. However, all forms of physical gold produce headaches for the buyer. Storing jewellery, bars and coins is fraught with danger and can be easily pilfered. Jewellery suffers from a special disadvantage in that the making charge – it can be as high as 30% of the total cost – is deducted if one tries to sell it off.
No minimum amount
Digital gold has no such shortcomings. One needs just an internet connection to buy it. Unlike Sovereign Gold Bonds (SGB) or Gold ETFs, one can invest any amount in digital gold. It starts from a ridiculous amount of Re 1 and there is no upper limit. You can buy it any round figure according to your wish.
Exchange for the metal
If you want, you can also take delivery of physical gold in lieu of digital gold investments. The platforms that sell digital gold usually have tie-ups with gold merchants. Therefore, whenever your sister wants, she can take delivery of the metal and make jewellery of her choice. Else she can sell the digital gold itself for cash.
Purity and transparency
Each unit of digital gold is backed by 24K gold of 99.9% purity. Since the purchase happens online at market prices, there is full transparency in the transaction. Since the documents are electronic there are no attendant problems of storage. Since the instrument is highly liquid one can easily sell it off. These platforms are very easy to operate.
Gold is an expensive but evergreen gifting option in India. Gifting digital gold can take away a lot of worries associated with physical gold. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
