If you’re considering investing in gold, purchasing gold jewelry might be the first thing that comes to mind. However, there are alternative options for investing in gold, such as digital gold.
Let’s explore the differences between digital gold and physical gold. The price of gold is steadily increasing, and experts predict it will soon reach one lakh rupees.
If you’re looking to capitalize on the rising gold prices, it’s essential to understand how to invest in gold.
Typically, when people think of investing in gold, they consider gold ornaments, biscuits, and gold coins, all forms of physical gold investment.
But is investing in physical gold profitable? And how does it compare to investing in gold digitally? Let’s examine both options.
Digital Gold: You can invest in digital gold for as little as 100 rupees, with no minimum limit, making it accessible to anyone.
- There are various apps available to invest in digital gold.
- Digital gold is easily sellable and can be invested elsewhere. It can be bought in units and sold quickly.
- Investments in digital gold can be used as collateral for loans.
- Digital gold can be securely stored in a digital wallet, eliminating theft.
- It allows for easy tracking of investments through online platforms, apps, or websites.
- Digital gold incurs only a 2-3% GST charge.
- Sovereign Gold Bonds issued by the central government are also a secure way to invest in gold. These bonds offer returns equivalent to gold prices, and investors receive interest on their investments without tax obligations.
Physical Gold:
- Investing in physical gold involves purchasing gold jewelry from a jeweler.
- Making 20% – 30% charges may apply when investing in gold jewelry.
- However, physical gold can be used as collateral for loans.
- Storing physical gold requires a locker, and theft is risky.