Digital Gold: Investment with Top 5 Apps in India

Digital Gold Investment

Digital gold is a technology that allows you to purchase and sell pure gold digitally at current market prices. It isn't a bank account or a financial product. The gold you purchase is backed by actual gold that is kept in a certified vault under your name.

So here we have mentioned about top 5 Apps where you may purchase digital gold.

In India, We have Chosen 5 best apps for buying digital gold.

Gold is one of the most popular investments in India, where it is seen as a valuable metal that can be utilized not only to increase one’s wealth but also as a good omen.

With everything turning digital, gold has joined the e-market, where you can buy and sell gold without having it in your possession.

This allows you to profit from rising gold prices and provides traders with a major trading opportunity while maintaining the highest levels of safety and transparency.

digital gold buy
digital gold buy

Investment in digital gold is subject to RBI restrictions.

Because the gold market is not classified as a financial industry, it exists in a gray area, with its own self-regulatory auditing system and due diligence method.

Augmont Goldtech, MMTC, PAMP India, and Digital Gold India are the three primary firms that now provide and store gold.

Furthermore, the government provides its citizens with Sovereign Gold Bonds, which are government securities valued in gold grams.

They serve as a perfect alternative for physically possessing gold, and trading is done in terms of the central government’s per-gram price.

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The function of the SEBI in the digital gold market.

SEBI recently recommended a framework for establishing a digital gold platform/exchange to ensure smooth gold trading in its electronic form. Till recently, SEBI had no control over the e-gold market, and it had told previously registered brokers to avoid trading e-gold until then.

This guideline was implemented to promote a market-wide transparent spot price discovery method.

The new gold spot exchanges are the way of the future.

SEBI has approved its recommendations for putting up a completely dedicated spot gold exchange, in response to rising investor demand for gold.

With liquidity, price discovery, and quality certification, as well as a transparent transaction mechanism, this will provide security. This would result in the establishment of a national pricing system for gold, which will compete directly with the SGB, Gold ETFs, and digital gold prices.

Electronic Gold Receipts, or EGRs, are the instruments exchanged on these new gold spot exchanges, and any recognized stock exchange will be allowed to establish this new product on the market.

Things to keep in mind when it comes to EGRs.

• When changing EGRs to real gold, a GST will be charged.

• If you want to keep actual Gold in EGRs, you’ll pay more than you would for a bank locker.

• Only once you have at least 50 grams of gold in EGR form will you be able to convert them. • Only retailers will be able to amass gold in this form.

• EGRs will have a tax structure similar to ETFs; • EGRs are claimed to be more liquid than ETFs; • Gold suppliers will be able to back their gold with EGRs.

The best applications to buy digital gold in India are listed below.

1. Paytm

Paytm, India’s most popular payment platform, has a dedicated e-gold investing page. Paytm Gold is a platform that allows Indians to purchase and sell gold, as well as give it to family and friends and have it delivered in physical form if necessary.

It has worked with MMTC PAMP to ensure that you receive the highest grade, most genuine gold that is globally recognized and approved.

MMTC PAMPM holds the quantity of pure gold purchased through the Paytm app in their 100 percent insured vaults, which you may view online.

All you have to do to get it delivered to your location is make an order and pay the shipping costs.

Otherwise, the most typical method of retaining them is to purchase and amass them online in order to profit from rising prices.

Gold is now available for purchase through Paytm at a price of Rs 5008.18 per gram with a purity standard of 999.9.

buy digital gold-Paytm
buy digital gold-Paytm

2. Tanishq is number two.

Tanishq, one of India’s largest jewelry retailers, also sells digital gold to its consumers.

You may buy 24-karat pure gold through their portal, which operates in a transparent manner and uses SafeGold products.

You may invest as little as Rs. 100 or as much as Rs. 100,000!

Tanishq’s digital gold may be exchanged at more than 350 locations around India, where it can also be acquired in real form.

You won’t have to pay any locker fees when you buy digital gold from Tanishq since the gold is safely held without any hidden expenses.

With only a few mouse clicks, you may buy or sell gold at any moment!

Their excellent customer service assures that you never have any problems when using their platform to buy in digital gold.

Tanishq buy gold online
Tanishq buy digital gold online

3. Google Pay is the third option.

In addition, Google Pay has partnered with MMTC PAMP India Pvt. Ltd. to offer an easy method to invest in digital gold Your investment has a 99.99 percent purity guarantee, and MMTC PAMP keeps it secure in their vaults on your behalf.

You can track and monitor the gold you buy with GPay in the ‘Gold Locker’ area of their app, and sell it whenever you choose.

The gold locker itself keeps track of all transactions.

To purchase digital gold on this platform, simply open your app, hit ‘new,’ search for ‘gold locker,’ and purchase the desired amount of gold. The nicest aspect about investing in gold using Google Pay is that you can buy it at market price plus taxes.

As a result, the purchasing price fluctuates throughout the day. However, you can only buy Rs. 50,000 worth of gold with the app in a single day, whereas the minimum gold purchase is simply Rs. 1. When you complete your digital gold transaction, the gold will appear in your ‘gold locker’ in only a few minutes.

Googlepay
Googlepay

4. PhonePe is the fourth option.

With PhonePe’s gold-buying service, you may purchase certified 24K gold online.

The’my money’ part of the app is where you may order your digital gold and then convert it to gold coins and bars if necessary.

You may start investing in gold with as little as Re. 1 and build up your collection over time, confident in the knowledge that PhonePe’s digital gold facility is supported by two gold providers: MMTC-PAMP and SafeGold.

Throughout the day and night, you may use the app to sell, purchase, and track gold prices. The gold is kept in insured lockers for you at no extra charge and delivered to you in physical form if necessary.

The gold price is set based on the current gold market price on the application itself.

buy digital gold-PhonePe
buy digital gold-PhonePe

5. Airtel Payments Bank is number five.

If you have an Airtel Payments Bank savings account, you may start investing in 24K gold right from the Airtel Thanks app.

They name their electronic gold investment ‘DigiGold,’ and if you have an Airtel Payments Bank savings account, you may give and transfer gold to your family and friends with ease.

SafeGold powers the platform, ensuring that every client who invests in god through the Airtel Payments Bank App receives 99.99 percent pure 24K gold that is safely held in SafeGold’s vaults.

The software allows users to buy and sell gold in seconds, with a minimum investment amount of Re. 1.

Electronic gold is one of the most recent additions to Airtel Payments Bank’s banking services, and officials are working on offering SIPs for gold in the future.

Airtel
Airtel

The Benefits and disadvantages of Purchasing Digital Gold

Advantages

Disadvantages
Digital gold is a practical and cost-effective way to buy gold in small increments online. You may purchase, sell, and collect 99.9% pure gold at any moment at the current market price. The digital gold you buy is held and insured in safe vaults.In the case of digital gold, an additional fee is imposed on the investor in the form of spear cost. A spread cost will be multiplied by a number of other charges, such as storage and insurance. The cost of the spread is usually between 3% and 6%.

Conclusion.

Several changes are being made to digital gold and its presence in the Indian financial industry.

But only for the better. To safeguard the safety of ordinary investors. Due to the same reasons, a few brokerage businesses, such as Groww, have stopped investing in digital gold. However, there are still several sites that allow you to invest in one of the most sought-after commodities in the country: gold.

With the top 5 names we’ve highlighted, you may be certain that you can invest in e-gold without having to worry about its storage, purity, or exchange.

FAQ on digital gold purchase

Q.1) Is purchasing digital gold risky?

Ans: The yellow metal remains one of India’s most popular investments, and just as acquiring physical gold is legal, so is purchasing genuine gold through digital channels.

Q.2) What is the procedure for purchasing digital gold?

Ans:

1. Go to Google Pay’s Gold Locker and log in.

2. Step 2: Verify the pricing and proceed with the transaction.

3. Step 3: Complete the transaction by entering the money.

4. In the fourth Step, sell or deliver your gold.

Q.3) Is it tax-free to invest in gold?

Ans: Returns on digital gold assets kept for less than 36 months aren’t subject to rigorous taxation. Long-term capital gains would be subject to a 20% tax rate on the entire amount, plus a surcharge and a 4% cess with indexation advantages.

Q.4) Is it preferable to invest in digital gold or a gold ETF?

Ans: Unlike SGBs, digital gold is insured for the whole amount deposited. Apart from a one-time 3 percent GST fee, there are no costs associated with digital gold. Annual fees of roughly 0.5-1 percent are charged on gold ETFs on a regular basis. Unlike gold ETFs and SGBs, you do not need a Demat account to purchase digital gold.

Q.5) Is digital gold subject to taxation?

Ans: Returns on digital gold kept for less than 36 months are not taxed directly. Long-term capital gains from digital gold are taxed at a rate of 20% on returns, plus a 4% fee.

Disclaimer:

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