Is it worth investing in Digital Gold?

Living in the era of technology and digital transactions, one can now buy something as gold online too. Having grown up in the Indian subcontinent, it’s no secret that owning gold is the Indian way of investing persisting over generations. An opportunity to invest in digital gold is offered by companies such as Paytm and Google Pay.

We all know that the value of almost everything declined during the pandemic but the price of gold remained the same, if not increased. The transactions in digital gold skyrocketed last year due to the pandemic.

So what is digital gold? One can think of owing digital gold as owing cryptocurrency, you don’t own it in physical form but digitally, the difference being, unlike cryptocurrency the value of digital gold is in INR hence, it is a much safer investment than cryptocurrency.

When one buys digital gold, the value of gold gets linked to their account. You need not worry about keeping your gold safe or paying a premium to a bank to keep it safe, the company from which you purchased it will store the gold for you. Another advantage of investing in digital gold is it’ll give you 100% resale value (the price of buying and selling day being subject to constraint), no buyer can deduct “making charges” or “second-hand gold charge”. Another great advantage to this is there is no limit on your purchase, your purchase can be as small as 0.1 gram, which is not plausible in the case of buying gold from a jeweler.

The only disadvantage of investing in digital gold is you can’t own it in the form of jewelry. The company from where you bought the gold can deliver you the gold you purchased but not in the form of jewelry.

If gold is your way of investment then digital gold can be your go-to option for it only serves the purpose of investing and no otherworldly pleasure.

- Falguni Panda