Digital Gold is an alternative to the Physical Gold in electronic form. You can purchase digital gold online and equivalent amount of physical gold will be kept in assured vault against that, hence it’s value will increase or decrease same as of Physical gold. You can buy digital gold with as even a small amount of money at real time price of the gold. There are many mobile apps and website available to buy and sell this and investing in digital gold is very safe option just make sure that you are purchasing it from trusted site or apps.

Benefits of investing in Digital Gold

Safely Stored: As you are purchasing digital gold you do not need to worry about how and where to store the gold. The company offering the platform (mobile app/site) will purchase and keep physical gold on your behalf in some safe vault.

Easy Accessibility: Digital gold can be bought very conveniently just by pressing few buttons and making payment online. And if you need money for some reason then you can sell it very conveniently and withdraw the money.

Can be brought in fraction: You can purchase digital gold with a very little amount like just by Rs 10/- rupees or thousands of rupees. It is not mandatory to buy in grams you can buy in milligrams. So, making it accessible to more investors.

Price Transparency : You can track your investment price on real time basis like at what amount you had made your investment, what is the value of your investment currently, how much gain you have made etc. . Most of the sites and mobile apps gives this option. Hence investment is digital gold is very transparent.

Low Transaction cost: Investment in digital gold attract very small charges as compared to investing in Physical Gold.

Risk in investing Digital gold

Hacking or Fraud: As the investment done electronically so there is risk of hacking and fraud in this. If the site from where you are purchasing digital gold you may end up loosing you investment. So, make sure while making investment in digital gold do it from trusted app/site.

No Regulatory Body : There is no dedicated regulatory body which continuously monitor the authenticity of the gold purchased by the app/site on your behalf . So, you should be cautious from where you are buying gold. It is always good to go with trusted name.

Storage time and investment Limit: There are many many platform which provide storage facility for specified time period only and once that period is over then either you will have to take delivery of physical gold or sell it. And some platform may restrict you to purchase up-to a certain amount of digital gold.

Ways to invest in Digital gold:

Gold Exchange Traded Funds (ETFs) : Gold ETFs follow the price of the gold and the traded on stock exchange . You can buy and sell them like an ordinary stocks buying and selling. You can buy and sell them during the Stock market hours using the demat account.

Sovereign Gold Bonds : The Government of India introduced Sovereign gold bonds(SGB) scheme in Nov 2015 as an alternative to Physical gold. SGB are safe investment option in digital gold as they are offered by Government via Reserve Bank of India. They also offer 2.5% interest annual as well the you get the price appriciation on gold value. Also if investment kept till maturity then gain is also tax free.

Conclusion: The world is changing very fast and now a days people are moving away from physical to digital asset considering the advantage, convenience and safety digital purchase is offering. If you are thinking to invest in digital gold considering the advantages it offers, just make sure to buy it from trusted source(site/app) .