InvestorQ : There seems to be a lot of interest in buying digital gold these days. What is your view on digital gold?
NISHA Nayak made post

There seems to be a lot of interest in buying digital gold these days. What is your view on digital gold?

Answer
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Priyanka N answered.
2 months ago


Digital gold has emerged as the latest fad as investors are able to invest as low as Rs.100 to buy gold. This has come as very handy at a time when gold prices are shooting up and people want to participate in small quantities. This is being offered by Google Pay, Amazon Pay and Paytm.

The COVID imposed restrictions on access to shops to buy physical gold and the social distancing norms only made it a lot tougher. As a result many people opted to buy gold through digital platforms which support the buying of gold in small quantities.

There are a number of digital planers emerging in India. Gold sellers are only 3 viz. Augmont Gold, MMTC-PAMP and Digital Gold India. These gold sellers have tie-ups with Fintech platforms like Paytm, Google Pay, PhonePe, Kuvera and now Amazon Pay.

It is relatively safe way to buy gold and also efficient. When you buy digital gold the company stores equivalent gold in vaults! The buyer of digital gold can either take delivery of gold or sell it back to the company. Normally, these gold are above 99.5% purity.


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Dinesh C Nagpal answered.
2 months ago


GOLD BEES at NSE is an ETF (there are many like that) but this one has max liquidity. The advantage of GOLD BEES are 1st you can buy 1 unit (so even a small investor can save) 2nd you can get long term gains in this 3rd there is no fear of theft and storage cost, its in your demat a/c, One can do SIP or staggered buying for medium to long term. Ample liquidity is there for one to buy / sell as and when and prices are always at 10% difference to Pure Gold because 10% -20% of the FUND is invested to Gold BONDS etc and the rest on pure gold at all times


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Prasanta Kumar answered.
2 months ago


Digital gold mesns trading in gold & purching gold bond