Friday, May 24, 2024
HomeInvestmentHow to Invest in Digital Gold India

How to Invest in Digital Gold India

Investing in digital finances and stock instruments can be helpful to widen your investment commodities. Buying digital gold and stocks is advantageous for the buyer so you need to know all about how to invest in digital gold. Gold has been a better investment plan for Indians.

While investing in physical gold products, buyers can also try digital gold as we know for buying physical gold you have to pay a lump-sum amount and in digital gold, you can invest in gold in small payments.

Also Read: Best Investment Plans for Beginners

What is Digital Gold?

Digital Gold is a concept used to define cryptocurrency, where investors and buyers can buy the virtual form of gold where you don’t have to secure it physically. Instead, the digital gold can be stored in digital vaults secured by the trader under the buyer’s holding. Buyers can buy Digital gold online from various wallets and investment apps. 

An essential thing about Digital Gold is that all gold for sale is certified by the government, and buyers can buy digital gold from genuine websites without any risk of Fraud. 

Buyers and sellers can easily buy and sell digital gold anytime and anywhere. If buyers want to redeem their digital gold, they can ask the sellers to convert their digital gold into physical forms like gold coins or biscuits.

Types of  Digital Gold Investment 

There are 7 types of Digital Gold in India for investments:

1. Gold Mutual Funds

Buyers can add gold to their investments by purchasing shares in mutual funds, and their investments in stocks of international mining companies. These mutual funds follow the price of gold as the assets they own fall and rise in value.

2. Gold Investments

Gold Investment in India can be a good option for avoiding risky investment. The most important advantage of investing in gold is that it has a relation with other assets.

3. Sovereign Gold Bonds

These bonds are the safest way to purchase digital gold as they are approved by the Reserve Bank of India (RBI). This bond is designated for basic units of gold. These bonds also have a tendency of eight years with an option for exit from the fourth year onwards.

4. Gold Schemes

Normally, jewelers come out with gold schemes from time to time for their valued customers. A buyer has to invest a specific amount in a gold scheme like SIP for a definite period of time.

6. Gold ETFs

ETFs have emerged as a simple way to invest in digital gold. In this buyers can simply invest in gold which can be sold and bought on exchanges of stock like normal stocks.

7. Digital Gold

Digital gold is a virtual investment in gold. On the other hand, gold mutual funds and ETFs are more suitable for investors who are familiar with mutual funds and stock investments.

Wallet and Investment Apps Many wallets promote digital investment, like Gpay, Paytm, and Groww, which sells Digital Gold in India.

Is Digital Gold a Financial Product?

No, Digital is neither a financial nor a deposit product; it’s just a tool to sell and buy the purest form of gold on the online platform. If buyers purchase digital gold today at the online market price with a digital wallet, the company will save your gold in your name in a safe vault.

After purchasing the gold, you can ask your seller to convert your gold into physical forms like bars, coins, and jewelry. Buyers only have to pay making charges. Buyers can also resell their gold to sellers and get their liquidity amount at a market price. 

Merits and Demerits of Investing in Digital Gold

This table shows you the merits and demerits of investing In digital gold:

Merits of investing in digital gold


Demerits of investing in digital gold


Transparency in Gold Prices: Digital Gold offers clarity regarding its market prices and trends. Buying and Selling: Digital Gold can quickly be sold or bought and transferred online.


Buying and Selling: Digital Gold can quickly be sold or bought and transferred online.


Lacking in Physical Ownership: Digital Gold needs to provide physical ownership to its buyers.


Low Transaction Costs: When Buyers invest in Digital Gold, they get lower transaction fees than investing in physical gold.


Cyber Risks: Digital Gold also has some online security issues, such as Fraud and hacking.


Low Transaction Costs: When Buyers invest in Digital Gold, they get lower transaction fees than investing in physical gold.


Lower Amount Investments: Digital Gold allows its customers to sell and buy gold in smaller amounts to make it more accessible to other buyers.


Reasons Why You Should Invest in Digital Gold!

Below are some reasons why you should invest in digital gold

  • Buyers can Sell and Buy Anytime or Anywhere

Digital Gold can be sold or bought anywhere in India at any time. Whenever buyers have money to invest, they can easily invest because Digital gold is easily accessible. If the buyers want to sell the digital gold, they can sell it without any consequences. Also, investors have to pay additional charges for making gold products.

  • Genuineness

Sometimes, when we want to buy physical gold products, there is a chance of getting tricked by the seller. Because the gold we purchase from the shops is sometimes less than 22 karat hallmark. It makes the gold value less than the actual value, but for digital gold, it can never be an issue for the purity of the gold as they give us pure 24-karat genuine product.

  • Investment can Made in Small Amounts

Buyers who can not afford physical gold because of less money can also invest in Digital gold because the buyers can easily invest in digital gold with only one rupee.

  • Secure Investment for Gold

Investing in Digital Gold is the best investment option as they are fully secure. There is no worry about their value depreciation because the gold rates constantly fluctuate more than any other investments like mutual funds. Buyers can easily store their Digital Gold in authorized

government vaults without any extra locker or maintenance fees.

Risk Involved in Digital Gold that Every Investor Should Know

Like any other option for investment, Digital Gold also has some demerits and risks involved in investing:

  • When an investor redeems their digital gold into a physical form and wants it delivered to their doorstep, the seller may ask for some delivery charges from the buyers.
  • As we mentioned earlier, there are no authorized boards to monitor the Digital Gold business in India.
  • You can also skip the GST charges in Digital Gold, as they never ask their buyers to pay the extra charges in their trading.

What makes Investing in Digital Gold Attractive? 

Buying Digital Gold is attractive for several reasons. It is readily available, and lots of buyers and sellers of digital gold are trading in online platforms, which makes them more comfortable buying gold comfortably at home. 

The idea of trading Digital Gold is spreading day by day in India, which makes it more popular these days for new buyers or sellers who are more interested in making future gold plans.

Buy Digital Gold Online In India

In India, the buying and selling of digital gold are legally approved by the government. It has three types of digital gold vaults that the government supports: a) MMTC, b) safeGold – Digital Gold India, and c) Augmount Goldtech. These three vaults are safe and secure trading companies for buying digital gold online legally.

Online portals and digital vaults like Paytm, Gpay, and Spare8, and some jewelers also provide digital gold trading with the help of these trading companies.

Buying Digital Gold Online in India is still a growing concept in India, and the government of India is still working to make this work for Indians. However, at present time, digital gold does

not come under the scope of any financial sector. This is the reason why digital gold is still in the grey zone, as there is no authority to organize the process of buying and selling, managing, storing, and securing Digital Gold sales.


As we know, what is digital gold, how to invest in digital gold, and cryptocurrencies are also known as Digital Gold and have become an alternative option for investments to their buyers.

Digital Gold also has common issues with physical gold, such as decentralized structure and limited supply, but they both have their risks and uncertainties for investing.  As for any investment you want to make in Digital gold in India, you should have to check all the essential information related to investment plans and risks.

How to Invest in Digital Gold India – FAQs 

Is it safe to invest in Digital Gold in India?

Ans. Yes, it is safe to invest in Digital Gold in India. Just do some research first about the companies who are providing the Digital Gold facility in India and their risks.

Is it safe to buy gold on wallet apps?

Ans. Wallet apps generally measure transactions to protect their customers’ transactions, making investing your money in Digital Gold through them safe and secure.

Is buying Digital Gold better than Physical Gold?

Ans. Yes, buying Digital gold is like buying purity directly from the authorized platforms rather than physical gold because sometimes the physical seller can trick us with the purity of the gold.



Please enter your comment!
Please enter your name here

Recent Posts

Most Popular