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An In-Depth Analysis Of Digital Gold And Its Exclusive Perks

Digital gold is an intriguing idea that evolved when technology transformed how we invest and do business. Imagine having access to a piece of gold, the most prized precious metal in the world, in a safe, practical, and digital format. The mix of traditional value and cutting-edge innovation represented by digital gold offers people a singular opportunity to partake in the timeless attraction of gold through contemporary methods. 

With digital gold, everyone can invest in gold without being restricted by large minimums or worrying about storage costs and security. It offers a smooth and liquid marketplace for trading gold, enabling investors to profit from price swings and diversify their holdings. More than just an investment opportunity, digital gold represents the fusion of traditional custom with contemporary convenience, opening up the power and attraction of gold to a larger audience in the digital era.

This article offers in-depth details of digital gold, its benefits, and its differences from physical gold. 

A Brief about Digital Gold

As the name suggests, the idea behind digital gold is to purchase the metal through various electronic or digital methods. Though it may sound different, digital gold works similarly to a physical one, but purchasing it digitally. The distinction, though, is that when the buyer makes a digital transaction using an app, the seller stores and insures a quantity of gold in a vault equal to the value of the purchase on the customer’s behalf. You can sell it via the app, or the buyer can choose to get actual delivery of the digital gold. Moreover, digital gold provides flexibility in purchasing gold for as low as a rupee. 

The Contrast Between Physical and Digital Gold

  • Purity: It marks the difference between digital gold and physical one. In the case of digital gold, the purity of the yellow metal is guaranteed, whereas gold in physical form may not possess a guarantee. 
  • Price: The prices of physical gold aren’t uniform and vary distinctively. On the other hand, digital gold is priced uniformly throughout the nation. 
  • Investment: Physical gold can only be achieved through gold coins or biscuits with a standard weight of 10 grams. Consequently, buying actual gold requires a substantial expenditure. Meanwhile, it is quite simple to trade gold in digital format as it is traded by weight or predetermined value. 
  • Cost: Purchasing gold jewelry involves paying an extra 20 to 30% of the gold’s worth as a manufacturing cost. In contrast, the government of India charges only 3% GST on purchasing digital gold.
  • Storage: Storage of physical gold is a genuine concern since it poses the risk of theft and loss. On the contrary, in the case of digital gold, the seller stores the gold in a secure locker under the investor’s name. Therefore the chances of theft or loss are nil to very minimal.

What justifies purchasing digital gold?

  • Reliable Form of Investment: The key benefit of investing in or purchasing digital gold is its reliable storage facility. When you buy digital gold, the authorized company will store gold of equal worth in a secure vault on your behalf. Thus, investing in digital gold is hassle-free as you needn’t worry about your gold’s safety.
  • No Minimum Investment: If you purchase digital gold, you need not purchase a certain amount. You can buy any amount of gold since it has no minimum purchasing value. For instance, you can buy digital gold online worth rupees 10 or 1000 and enjoy the perks of investing in digital gold. 
  • Collateral Usage: You may pledge digital gold as security for loans. This is because it has a purity of 24k and is stored in highly secured vaults. It lessens the likelihood of loan denial and assists borrowers in avoiding the administrative burdens associated with collateral documentation.
  • Easy Trading: The key advantage of investing in digital gold is its easy trading nature. It allows you to purchase, sell or even convert it into cash or other valuable assets without hindrance. Besides seamless trading, it has no minimum purchase value, which means you can buy gold at even a penny. Additionally, no extra fees are associated with trading in your digital gold. 

You can rely on DIGIGOLD. It is one of the most reliable sites in India to buy digital gold online at market prices. Moreover, you can start investment from just a penny and vend anytime without any hindrance.

  • Effortless Exchange: One of the prime benefits of digital gold over other investments is that it can be seamlessly and swiftly traded for physical gold in terms of coins, bars, and bullion with a click. This flexible nature allows investors to easily turn their digital assets into tangible ones. Moreover, you can also deliver your digital gold in the form of actual gold of the same worth. 

Tax Details on a Digital Gold 

In India, capital profits on digital gold are taxable. If you sell digital gold quickly (within 3 years), the capital gains are subject to income tax at the appropriate slab rate. If you decide to sell the gold in the long run (after three years), the capital gains will be taxed at 20% with an indexation advantage.

Final verdict

Briefly, digital gold has been a revolutionary concept for investing in gold. It offers many benefits and is a consistent form of liquid investment. Moreover, digital gold embodies purity and can be used as collateral for your loans. Furthermore, investing in digital gold needs no minimum value and is easily exchangeable and traded. It offers versatility, purity, and proper monetary value.