The trend that everyone is talking about right now is digital gold. Following in the footsteps of fintech companies, jewelers  are positioning themselves to entice younger customers who have never bought gold before to make their first purchase through the digital gold channel because it is more convenient.

During the Quarantine lockdown that took place a year ago, there was a significant spike in demand for digital gold.

The managing director of Safe Gold, Gaurav Mathur, stated that over the course of the previous year, there has been an increase of one hundred fifty percent in the quantity of gold that has been held in vaults, which is indicative of the increasing demand for the product. The fact that one may purchase and sell gold in fractions through this way, with the lowest amount starting at jut one pound, is the primary reason for the increased interest among investors.

But might digital gold be considered a form of currency? How does it stack up against other exchange-traded funds (ETFs) that invest in gold? Is it a good place to put your money? The answer to all of your questions is Mint.

Is Digital Gold A Financial Product?

Digital gold is a platform that allows ERS to buy & sell pure gold in its digital form jut at prices that are currently available on the market. It is not a deposit, nor is it a product of the financial industry. The gold which you purchase is backed by actual gold that is kept in a secure vault under your name and under the supervision of experts. Your digital gold holdings can be converted into coins, bars, and jewelry at any moment, and you can have it delivered to you if you so want. You will only be responsible for making payments.

Augmont Gold, MMTC-PAMP, and Safe Gold, that is the retail brand of Digital Gold US are the three companies that provide the service of buying and selling digital gold in US.  These organizations have essentially formed partnerships with online marketplaces and payment processors such as Paytm, Groww, and Gpay, as well as jewelers that provide customers with the opportunity to invest in digital gold through their own websites. Only the three companies that have been named above are authorized by the law to sell gold & then buy it back from customers on their respective platforms.

Is This A Potential Avenue For Investment?

It is possible to make e of digital gold as an investment choice given that you can actually possess the metal itself. However, jut like owning physical gold, it does not guarantee any return and interest on your investment. Either you can choose to redeem your accumulated holdings in the form of coins, bars, or jewelry, or you can choose to sell it back to seller at the current gold rate. Both options are available to you.

The price of one gram of pure gold is represented as the gold rate that is displayed jut on platform on that you store digital gold (999.9 or 24k).

The primary distinction among buying physical gold coins or bars) directly and  the digital gold choice is which the latter does not require you to be concerned about the safety and preservation of your investment.

The dealer of digital gold is responsible for its safekeeping in a vault for a period of five years at no additional charge. After this,  customer will be responsible for paying a storage fee to custodian if they do not sell and redeem their holding within the specified time period.