India is beginning to embrace financial literacy and the importance of investing in diverse asset classes. Resulting in the concept of investing in the digital form of a commodity to which it has been physically and emotionally attached. Physical gold is now considered for digital investment. As an all-time favourite traditional form of investing in gold in India.
Investing in gold is something you can do forever, and it has always been a preferred investment component around the world. Think twice if you thought it was only necessary during festive seasons or weddings. Covid has made it hard to step out to buy gold but fret not!. In this case, digital gold comes in handy. Investing in digital gold is easy and comes with additional benefits that physical gold does not.
Here is the Smart Guide to Digital Gold investing – how it works and how it can benefit you. It costs just Rs. 1 to invest in digital gold however, this investment is a secure way of investing and protects you from an unstable market.
Invest in digital gold for the following reasons:
- Purity assurance certificate: Customers receive genuine 24K gold with a purity assurance certificate.
- Small investments: Customers may choose to invest as little as Re 1.
- Customers can redeem digital gold as they please: One can sell Digital gold anytime. Furthermore, customers can exchange digital gold for physical gold coins, bars, etc. with guaranteed safekeeping.
- No tension of storage: The buyer stores digital gold in insured, secure vaults without any extra charge. Unlike physical gold, which comes with storage hassles and safety concerns.
- Using digital gold as collateral for online loans: If you own digital gold. You can use the gold assets as collateral for online loans that are quick and hassle-free.
- Invest in gold in real-time: Customers can take action to buy or sell gold at the right time by starting a monthly SIP.
All investment options can be good, like investing your money in Gold, Stocks and Securities, Mutual Funds, or Fixed Deposits, or else Recurring Deposits. But investing in Digital Gold Investments is much preferable nowadays.
Also Read: Why Home Loan is an Ideal Investment Option
Here are some reasons why digital gold is emerging as a future of gold investments so that you can make an informed decision.
Digital Gold is becoming increasingly popular to invest in digital gold. As investors continue to speculate whether it will compete with other investment options.
- No fluctuations in Taxation
The tax structure of digital gold doesn’t change, and it treats similarly to physical gold investment for tax purposes. Thus, the amount of tax required on digital gold assets can determine the length of the holding period. Digital gold returns, for example, treats, as short-term capital gains if owned for 36 months or less. As a result, it is to add in your gross income and taxed accordingly. If you possess digital gold for longer than 36 months, you will require to pay 20% of a profit as tax with annual inflation advantages.
- Buy and Sell without time constraints
The funds get transferred to the investor’s registered bank account via instant money transfer or IMT. Digital gold investors can quickly sell their gold assets. At the current market value without incurring any additional fees. This simple selling procedure proves exceptionally beneficial for dealing with financial emergencies.
- Protect You Against Uncertain Market Conditions
It is convenient for investors to hedge against uncertain market fluctuations with digital gold. In the last 10 years, spot gold has increased by almost 900%, and the depreciation cost is minimal because it is scarce.
In addition to managing our investment portfolio’s risk against market volatility. Digital gold also helps us manage our portfolio’s risk. Furthermore, digitization simplifies, secures, and protects the system.
Investors may convert their digital gold investments into cash, gold bullions, coins, and so on to limit losses if the marketplace exhibits strong negative tendencies.
- Simple to Redeem
Digital gold is easily redeemable, and investors can quickly liquidate it anytime. The investment platforms often deliver the redeemed gold units safely to an investor’s home for additional convenience. They can also redeem it in gold coins, bars, or cash.
Furthermore, digital gold investments offer several other benefits, including the assurance that all gold you invest in will be 24 Karat. using digital gold as collateral for quick and hassle-free online loans, and tracking digital gold transactions online. Diversifying an investment portfolio, thus reducing the risks of long-term losses, helps diversify an investment portfolio.
Digital gold investments have become the most convenient method of investing in gold because they have an easy application process and uncompromised safety features. Various online platforms like eSwarna are now offering digital gold, a more convenient and attractive option than physical gold due to its purity and flexibility in buying and selling.
Intending investors can buy digital gold from these platforms. Digital Gold is a popular investment choice for future investments, among tech-savvy investors because of the simple process of registering an account, selecting a rupee or gram denomination. eSwarna also offer investors to invest in gold through SIP.
Start investing in Digital Gold, with eSwarna, today and safeguard your investment, for future, to earn more value on it.