Dhanteras: a day believed auspicious for your wealth and prosperity. A day when across the country, people step out to buy precious metals as a sign of good luck.
These can be in the form of new utensils, pieces of silver and gold jewellery, and even gold and silver coins. However, there are newer ways now. You can invest in a Gold Exchange-Traded Fund (ETF), a commodity-based mutual fund that invests in gold, or invest in Sovereign Gold Bonds, and even add gold to your long-term investment portfolio.
You can also buy digital gold. In India, three companies provide digital gold — Augmont Gold Ltd, MMTC-PAMP India, and Digital Gold India Pvt Ltd under the brand Safe Gold. These companies purchase the gold on your behalf and store it safely until you sell or want to withdraw.
There are many platforms like PhonePe, Paytm, Google Pay, among others, where you can sign up and buy digital gold, without stepping out of your home — at your convenience.
There are some advantages to this — you can buy digital gold for as low as Re 1 and keep adding as you wish, digital gold is pure 24 carats, you can access it from anywhere, and you can even sell it whenever you want.
However, there are a few limitations as well — some platforms may limit your investments to Rs 2 lakh, there are delivery charges to withdrawing your gold and getting it delivered to your home, and there is no regulatory body for gold.
However, it is still a lucrative form of investment. Especially amid COVID-19, digital gold is a comparatively secure investment as volatile markets such as gold tend to perform better than other assets during an economic slowdown.
If you are looking for some digital gold this Dhanteras, check out some of these platforms:
Fintech platform PhonePe launched its gold category in December 2017, which allows users to buy and sell certified 24-carat gold on its app. It has partnered with both SafeGold and MMTC-PAMP India’s accredited gold refineries.
Last year, the firm claimed that it has emerged as “the largest platform for buying ‘digital gold’ with over 35 percent market share”.
In July 2017, fintech unicorn Paytm announced the launch of digital gold on its app, allowing users to buy gold for as little as Re 1. Paytm Gold is a partnership with MMTC-PAMP, a joint venture between PAMP Switzerland and the Government of India undertaking MMTC Ltd.
The gold customers buy is stored in lockers that MMTC-PAMP says are 100 percent secure and insured. Consumers can even get the gold delivered to their doorstep.
Last April, Amazon launched its digital gold offering. Customers can access this feature either on the app’s Amazon Pay page or by just searching “digital gold” on the app.
You buy and save digital gold on Amazon for up to Rs 5 lakh. The company has tied up with SafeGold for this initiative.
In 2019, Google Pay launched digital gold as a category. Customers are allowed to buy 99.99 percent 24 karat gold within the app, backed by MMTC-PAMP India. You can access digital gold on Google Pay by searching for “Gold Locker” on the app.
Like Paytm, Google Pay also allows you to buy for as little as Re 1. However, the app has a daily limit of Rs 50,000.
You can buy your digital gold directly from SafeGold’s platform as well. It allows customers to buy for as low as Rs 10, and you can convert it to physical gold by paying a “nominal minting charge”.
The company claims that it offers free insurance with the delivery to make sure your gold reaches you safely. It also gives you five years of free storage in its vaults.