Buying gold during auspicious occasions has long been a part of Indian tradition. However, in recent years, there has been a rise in the popularity of digital gold investments, especially during festive periods. This trend is primarily driven customs and traditions, as well as the desire to commemorate special occasions with precious metals like gold.
So, what exactly is digital gold? It is a relatively new way to purchase gold online, offering an alternative to buying the physical form of the yellow metal. With digital gold, users can purchase an equivalent amount of gold that is kept as physical gold in an insured vault. The minimum amount that one can buy is as low as one rupee.
According to Yashoraj Tyagi, COO and CTO at CASHe, digital gold investments provide a simple and user-friendly route for people to purchase, exchange, and gift gold without the complications of handling physical gold. Festive seasons often mean individuals have more disposable income that they prefer to invest in assets like gold to safeguard their financial stability.
Digital gold investments offer several advantages, such as a 24K purity guarantee, minimal fees, easy purchase through digital payment apps, and secure storage in bank vaults. Unlike physical gold, there are no making charges or recurring annual fees associated with digital gold, making it a cost-effective way to own gold. Additionally, digital gold allows for fractional ownership, meaning investors can invest in small amounts of gold, benefit from compounding, and enjoy high liquidity.
When it comes to gifting options in digital gold investments, there are a few options to consider. One can choose to gift physical gold vouchers that recipients can redeem for digital gold through designated platforms. Alternatively, digital gold wallets allow recipients to directly own and manage their digital gold holdings. Lastly, one can make a direct purchase of digital gold on behalf of the recipient. The choice among these options depends on the recipient’s familiarity with digital platforms, their comfort level with online transactions, and their preferences regarding possessing physical or digital assets.
As we approach the festival season in September 2023, which features significant festivals like Krishna Janmashtami, Hartalika Teej, Ganesh Chaturthi, and Anant Chaturdashi, the demand for digital gold investments is expected to be particularly high. However, it is always advisable for investors to consult with certified experts before making any investment decisions.
Source: This article is based on the original article published in Live Mint.