Tuesday, March 28

What Is Digital gold And How To Invest?

The festival season is about to begin. There is a lot of discount on the purchase of gold and silver during the festive season. Many people want to buy gold or gold jewelry during this time. Along with this, gold has always been tempted by people investing in commodities. For this people have to go to the nearby markets. But a very easy way to invest in gold is available on the digital platform, known as Digital Gold.

In this era of the digital world, the trend of investing in gold digitally is being seen a lot among people. Many companies also provide gold up to Rs 100 on their sites. Many gold selling companies are selling gold through a tie-up with digital gold platforms during the festive season.

Digital Gold

What is digital gold?

Digital gold is gold that is bought or sold online, i.e., digitally. It is stored in vaults insured by the seller on behalf of the customer. You do not need such a thing; just some information related to the internet, mobile, and banking is required. Its most important thing is that there is no minimum limit to buy gold. To purchase gold digitally, you can buy gold for less than Rs 100. There is a lot of difference between buying gold online and offline, such as storage, tax, etc. If you want to invest in gold digitally, then you need to be aware of some things.


You do not have to pay any storage or vehicle cost to invest in Digital Gold. Investors investing here do not have to worry about the safety of gold. This gold is kept in a secure vault on the side of the trading companies. That’s why people are paying more attention to buying gold online than offline.


There are different types of taxes to be paid for purchasing gold offline and online. The investor has to pay tax according to the income tax slab on the gains made on investment of gold for less than three years. Also, for investment withholding of more than three years, the investor has to pay 20 percent tax along with indexation benefit. If you talk about digital gold then, Gains from gold invested for less than three years are taxed as per the investor’s income tax slab. Also, for investment withholding of more than three years, a tax of 20 percent is to be paid with the benefit of indexation. In this way, in tax also, digital gold provides more convenience to the customers.

How to Invest in Digital Gold?

We have already mentioned that there is no minimum limit to buy digital gold to buy this gold in small quantities. Investors investing here can buy and sell gold according to the weight of the gold or a fixed amount. One thing to note here is that investors cannot directly invest in digital gold. To support here, investors have to approach an authorized third party. For this, the investor has to place an order for gold first. He keeps that order on his side in the safe. The agents then buy gold in the same amount for the investor. The same process is also done for selling gold.

The agent sells the gold at the market value and deposits the proceeds into the investor’s account. You can use mobile e-wallets like Paytm, Google Pay, and PhonePe to invest in Gold. you want, you can take the help of brokers like HDFC Securities and Motilal Oswal. It is also a good option for investing in digital gold. Before investing in digital gold, you must find out whether the firm you are investing in provides you with transparency and real-time updates. Sometimes, if you do not know immediately when the prices fluctuate, you may not be able to earn much and the right profit.

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