Learn the top reasons to postpone purchasing digital gold at Karwa Chauth, Dhanteras, or Diwali in 2022. Sellers frequently attempt to conceal or distort the following facts that you must know.
Companies that sell digital gold will use any and all means to persuade you of the virtues of these fictitious commodities. You may encounter various online and offline advertising attempting to entice you to invest in Digital Gold before Karwa Chauth, Dhanteras, and Diwali. However, you need to be cautious. In the long run, investing in Digital Gold might not be secure and rewarding.
Here are five reasons why you shouldn’t buy Digital Gold during this festival season. These are the truths that salespeople for digital gold frequently attempt to conceal or obfuscate.
Not safe and not regulated.
Investment in digital gold is not regulated in India. Investment advisors and brokers were prohibited from trading in digital gold by the markets’ regulatory body, the Securities and Exchange Board of India (SEBI), last year.
You should never invest in unregularized assets, according to one of the fundamental principles of personal finance, in order to protect your money. Therefore, wise investors should steer clear of the digital gold market until it receives sufficient recognition and regulation.
Cost increase for making into jewelry.
When necessary, several jewelers allow consumers to exchange their digital gold holdings for actual jewelry. The prices, however, do not correspond gram for gram. Prices for digital gold are always less than those for jewelry.
Customers must also pay additional fees, such as taxes and processing fees, when requesting an exchange. GST is charged twice: once when digital gold is sold to the purchaser and once more on the total price of the jewelry when it has been finalized.
It is impossible to confirm whether the gold is really kept in a vault.
Each gram of digital gold sold online, according to sellers, is backed by actual gold stored in a safe vault. Customers are unable to go and verify where their gold is truly kept, though.
If the refiner fails, there will always be a chance of losing some digital gold.
No interest will be paid on deposits.
Customers can purchase digital gold from some vendors by making a series of extremely tiny deposits over time. Customers do not, however, get any interest on their deposits. Digital Gold buyers can only profit if the market price of gold increases. Tax ramifications and selling fees also have an impact on the total revenue generated by digital gold. The needed information must be given by digital gold vendors in response to government authorities’ inquiries.
No permanent free storage.
Sellers assert that they keep physical gold identical to the digital gold that clients have purchased in insured, certified vaults in extremely secure locations. But the free use of this storage facility is not permanent.
Typically, five years of free storage are offered. After then, a charge will be made every month for the following five years.
Which alternatives are preferable?
The greatest choice for customers looking to invest in gold digitally is Sovereign Gold Bonds (SGBs). The RBI directly offers SGBs, which provide annual income in addition to benefits from rising gold prices. Customers can also look into gold ETFs for returns that are market-linked.
About Digital Gold
Indians are becoming more and more interested in investing in digital gold, and numerous banks, websites, and brokerages now provide this service. For many, purchasing digital gold is simple. In comparison to purchasing physical gold, it is also less complicated and dangerous. From a minimum of 1 gram to a maximum of 4 kg of gold, the charges start at just Rs 1.
Platforms that offer digital gold buying options
Every Indian has heard of Paytm, one of the most well-known financial apps, but few are aware that you can use the platform to purchase digital gold in just a few simple steps. As you complete your transaction, it displays the current gold price. You can also see how much gold you have bought by clicking to the Paytm Gold locker symbol. Users of the app can purchase gold coins as well. However, the covid19 has closed the physical delivery of it. Although there are costs associated with manufacture and delivery, it is an excellent place to start.
A digital marketplace called SafeGold makes it simple to trade, purchase, and receive 24K actual gold. You can buy gold there according to your budget at prices that are competitive with the market, and you can also take advantage of free guarded storage. Additionally, you can store your gold with a cost-free bank or receive actual delivery of it.
You must choose the delivery icon in the gold vault for Google Pay to offer physical delivery of digital Gold. You can easily buy gold at your convenience by doing nothing more than sitting at home, entering your address, clicking “pay,” and waiting 1 to 3 days for delivery. A gold coin or a bar are available for selection on the platform. Additionally, you can give the acquired digital gold to any Google Pay contacts.
Since launching its gold category in 2017, PhonePe has developed into the ideal platform for buying and selling 24-karat gold. To make purchasing and selling gold easier, the platform has partnered with MMTC-PAMP for 99.99% pure gold and Safegold for 99.50% pure gold. On PhonePe, you may also get gold rate updates every five minutes. The cost for buying gold includes 3% GST.
The content on this website is meant only for general information purpose and does not and shall not be construed as any solicitation, procurement, display, aggregation, marketing or advertisement of insurance products. Loanpersonal.in is not an insurance intermediary and hence does not endorse or solicit any such products. The information on this website is derived from publicly available sources and Loanpersonal.in cannot verify or confirm the genuineness, truth, veracity or authenticity of this information.
Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply Loanpersonal.in’s partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.