Digital gold is the most accessible and profitable way to save in yellow metal for those who choose it in physical form. Digital gold allows you to buy, sell and save/invest in pure gold at any time and any place. Thus, even with a little monetary investment of Re. 1, one can buy a certain quantity of precious gold from the comfort of their home.
Each gram bought by a saver is actually an actual 24K physical gold, which can be smoothly sold back online at a market-linked gold rate. Comprehensibly, you do not have to be concerned about the overload of situations discussed above, like paying for its storage. As it is securely purchased and stored in a vault by the gold & silver dealer.
So, Gold is the oldest form of currency that we humans are using since ancient times and it is mentioned in our oldest Hindu scriptures and shows the importance of Gold there.
It is essential to have gold as your key financial investment to get the most out of the bullion market profit. As the gold market is not as volatile as the typical stock market and also not many people have jumped & explored gold as an investment option.
Most people have only bought jewelry for shopping purposes and as a luxury item. not as an investment option.
Below we are going to compare Digital Gold with other major investment options available and answer a common question is Gold a good investment option.
Gold Vs Cash Reserve
Everybody knows that Inflation occurs when there is a decrease in the value of the currency. This makes digital gold a winner in the digital gold vs real interest rates game.
Second, if you have cash in your wallet then you are more likely to spend it on things like fancy expensive meals or clothes but if you have gold you won’t do this because of the extra effort that it takes to sell it. So in digital gold vs money, digital gold wins.
Gold Vs Fixed Deposits
The interest rate on Fixed Deposits is not that lucrative or exciting enough that appeals to the large masses. After comparing it with major investment options for the rising inflation rate, it is nothing at all.
We can also conclude if we do some research, that FD delivers negative returns! In simple terms, inflation (rise in the general price level) rates are more than 5% which could be not covered by FD.
Additionally, FDs are typically fixed for 5 to 10 years & if you redeem them before that term, there is usually a penalty of up to 1% for premature pull-out, which will not provide you further benefit when compared to the rising inflations.
Gold Vs Bonds
Do you think investing in bonds is 100% secure? Well not really, most people have that delusion that bonds are all secure for investment. It is true only if you invest in some AAA-rated bonds.
All bond issuers do not insure their assets in the event of a loss therefore most financial advisers tell investors to opt for gold(but not physical gold of course)
Gold Vs Equity
Investing in the stock market is a whole different ball game, here you have to perform immense research activity to understand how the NIFTY and SENSEX market works and how to analyse companies’ data so that you can make profitable investments.
Choosing a proper broker is a different headache for many people. Most people don’t know the real charges such as AMC charges, Hidden Charges, Rate of brokerage to buy/sell &, etc. All of these aspects must be considered before becoming a shareholder. There is also fundamental analysis, technical analysis, valuation, etc.
After going through all, you might be thinking that now I have the option of a Mutual Fund but what makes mutual funds so interesting is that they were meant for simplifying your journey in equity markets, but with so many mutual funds now available, it’s difficult to choose which one to use as my capital allocator.
Fun Fact – Gold prices tend to rise when stock markets fall, so when stock market prices plummet, gold prices will rise. Anyone who invested in gold during the pandemic knows this to be true.
Buying physical gold comes with a lot of hassle such as:
- Purity Issue – With digital gold will get 24K pure gold but with physical gold, there are a lot of mistrust and legitimacy issues regarding the purity of gold.
- Storage & Care – There is always a chance of getting stolen and taken care which makes us insecure most of the time
- Making Charges – Jewellers charge a big amount of making charges which aren’t convenient for many people. DigiGold avoids these charges.
- No Middlemen – You get the best price possible as there are no middlemen like jewelers who scoop out their profit.
- Feasibility – You can buy and sell your gold holdings from the convenience of your home
- Trackability – You can track investment in Digital Gold whether the valuation is up, stable, or down.
How convenient is Digital Gold?
- You can also sell your gold digitally back to the platform whenever you want without facing any extra charges.
- Most platforms provide the benefit of doorstep delivery of the physical gold at a small cost if redeemed in this form.
- In addition, digital gold can be purchased with a bare minimum amount of Rs 100 but with physical gold, you can’t.
WRAPPING IT UP!
So, we have discussed how digital gold wins as one of the best investment options over the popular one if you are looking for term investment options for your portfolio.
DigiGold gives the opportunity to invest in precious metals, beginning with a bare minimum amount of Rs 100. Grab the opportunity and begin your golden journey.