Digital Gold: The attraction of Indians towards gold is not hidden from anyone. Gold is also consumed here and it is also considered as an investment option. After China, India is the largest consumer of gold in the world. The biggest reason for the attraction of gold is to be considered the safest investment option. The investment portfolio should be diversified so that market fluctuations do not have much impact on returns. Gold is definitely in most investors’ portfolios because it has consistently given better returns. Earlier, physical gold used to be invested, but now many online platforms and stockbrokers can invest in digital gold. While investing in digital gold, homework should be done on the factories, where you are buying, etc.
Highlights for investing in DIgital Gold
Where to buy: Digital Gold is sold by Authorities vendors or producers who have partnerships with several banks, broking firms or fintech companies. They act as intermediaries between the buyer and the seller. However, before purchasing gold from any platform, find out about its purity, hallmarking, refund policy and vendor.
Transparency and real-time updates: Nowadays internet availability has become very easy. In such a situation, investors can easily buy digital gold at real-time market rates. The fluctuation in the price of gold in the market has an immediate effect on the price of digital gold. With better internet access, investors can take the right decision.
Making and Delivery Charges: The biggest advantage of digital gold is that investors do not have to pay making charges. The investor only has to pay the price of gold at the time of purchase. However, on completion of the investment period or on selling digital gold, the delivery and making charge has to be paid like physical gold.
Tax on Digital Gold: When a customer buys digital gold, a Goods and Services Tax (GST) is levied on him at the rate of 3 percent. Apart from this, if there is any profit on digital gold, then tax is payable on it like physical gold, gold mutual funds or gold ETFs.