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July 16, 2024

what is digital gold investment in India

 

Digital gold investment in India allows you to buy and hold gold in a digital format, which can later be converted into physical gold. Here’s how it works:

Key Features of Digital Gold:

  1. Purchase Through Apps: You can buy digital gold through various platforms like Paytm, PhonePe, and Google Pay. These platforms partner with authorized dealers to facilitate purchases.

  2. Storage: The gold you purchase is stored in secure vaults by the service provider, eliminating concerns about physical storage and security.

  3. Buying Flexibility: You can invest in small amounts, making it accessible for a wide range of investors.

  4. Conversion to Physical Gold: Digital gold can be redeemed for physical gold in the form of coins or bars, usually after a minimum holding period.

  5. Market Pricing: The price of digital gold is linked to the market price of gold, ensuring transparency and real-time pricing.

  6. No GST on Purchase: Digital gold purchases do not attract Goods and Services Tax (GST) at the time of buying, but GST may apply when converting to physical gold.

Benefits:

  • Liquidity: Easy to buy and sell through digital platforms.
  • Convenience: No need to manage physical gold or worry about theft.
  • Small Investments: Allows for fractional ownership, making it affordable.

Considerations:

  • Regulatory Framework: Ensure the platform is regulated and secure.
  • Redemption Process: Be aware of the terms and conditions for converting to physical gold.

Digital gold is a modern and flexible way to invest in gold, catering to the needs of today's investors.


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