Gold has always been a lucrative investment choice, and with the initiation of digital gold investment, this process is now far more convenient and transparent. You can purchase small fractions of 99.9% pure gold online and sell them anytime at the prevailing market price.
The digital gold units are stored in highly secured vaults and are also insured by renowned trusteeship. Therefore, in case of any unforeseen circumstance, the interest of an investor is duly protected.
This digital gold investment procedure is much safer and hassle-free in contemporary times than if you are purchasing from a jeweller personally. If you are considering investing in e-gold, you can check out investment platforms like KredX.
However, even with growing popularity, investors still speculate whether digital gold can top other investment options. To help you make an informed decision, we have listed some fundamental reasons why digital gold is emerging as the future of gold investments.
5 Reasons Why Digital Gold Investment Is Your Best Bet
Investing in smart or digital gold is the future and is gradually gaining traction among new-gen investors. Here are 5 advantageous digital gold loan features that explain why it surpasses physical gold loan investment practices in contemporary times.
Digital Gold Investment Is 100% Secured
The gold that you purchase online is physical gold that gets allocated under your direct ownership. These golds are stored in secured and fully insured vaults. Three companies presently provide this service –
- Augmont Gold
- Digital Gold India Pvt. Ltd
- MMTC-PAMP India Pvt. Ltd
Furthermore, the bought units are protected by trusteeships to secure digital gold investors’ interests.
No Change In Tax Structure
For tax purposes, digital gold investment is treated similar to investments in physical gold. Therefore, the amount of tax required to pay on their digital gold assets depends on the holding period.
For example, if you own digital gold for 36 months or less, the return from it falls under the category of STCG or short-term capital gains. Therefore, it is added to your gross income and the income tax is charged as per the applicable slab. On the other hand, if you own digital gold for more than 36 months, you will be liable to pay 20% of the gains as tax with indexation benefits.
Sell The Digital Gold Anytime
Digital gold investors can easily sell their gold assets at the current market value without incurring an extra fee. The funds get transferred to an investor’s registered bank account via instant money transfer or IMT. This easy selling procedure proves to be extremely beneficial to meet financial emergencies.
Hedge Against Uncertain Market Conditions
Digital gold investors can conveniently hedge against uncertain market fluctuations. In the last 10 years, the price of spot gold has risen by almost 900%. Due to its scarcity, the depreciation cost is minimal.
Like with physical gold investment, digital gold also helps us manage the risk portion of our investment portfolio against the volatility of markets. Plus, digitisation further makes the process easy, secure, and safe. Investors can easily liquidate their digital gold investment into cash, gold bullions, coins etc., to minimise their losses if the market manifests extreme bearish trends.
Investors can easily liquidate digital gold at any time. You can choose to redeem it in the form of gold coins, bars or avail cash if deemed necessary. Furthermore, most digital gold investment platforms deliver the redeemed physical units safely to an investor’s home for further convenience.
Apart from this, you can also enjoy several other benefits with digital gold investments like:
- All the gold that you will be investing in will be of assured 24 Karat quality.
- Digital gold can be used as collateral for quick and hassle-free online loans.
- Investors can easily track their transactions and investment in digital gold online.
- It helps diversify an investment portfolio and, therefore, reduce the chances of losses in the long run.
With an easy application process and uncompromised safety features, digital gold investment emerged as the most convenient way to invest in gold. It has become an attractive and better option than purchasing physical gold in terms of purity and flexible buying and selling options. Intending investors can buy digital gold from various online platforms like KredX. One only needs to register their account with their preferred platform, select a rupee or gram denomination to purchase gold, and pay from their account. This simplicity is much-coveted in this digital era, making gold a popular investment choice among tech-savvy individuals.