InvestorQ : Which digital gold can be converted into physical gold?
Niharika Kamble made post

Which digital gold can be converted into physical gold?

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shivangi Arora answered.
3 months ago
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You can convert the e-gold held electronically in De-mat form into physical gold as per your convenience. You can buy e-gold through National Stock Exchange Limited (NSEL). One unit of e-gold is equal to 1 gm of physical gold. You can not only convert the e-gold held into your account into physical gold, but also you could indulge in buying or selling gold on the exchange itself to earn profits.

There’s another option available to the investors, and that is Gold ETFs. It is considered a good investment option, but it is only possible to convert Gold ETFS into physical gold when they exceed a certain amount. It can vary from 500 gm to 1 kg, depending upon the policies of the fund house.

E-gold is treated at par with physical gold, and hence, attracts the same tax consequences as any physical gold. So, if you wish to invest in e-gold, you can invest in small quantities as and when required. Since it is treated at par with physical gold, it attracts capital gain. If the gold is sold after three years, it attracts long-term gain, otherwise, it attracts short-term capital gain. You can deal in e-gold just like shares on a recognized stock exchange.
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