Digital gold is one of the newer and popular investment options available to investors to buy gold. It allows investors to buy and hold gold in an electronic form, thereby doing away with the need to physically store gold.
Investors buy units of gold online, though the actual physical gold is deposited in a vault operated by the service provider. Thus, every unit of digital gold reflects the actual physical gold, thereby underscoring its inherent value.
Advantages Of Investing In Digital Gold
Convenience: One of the biggest conveniences of investing in digital gold is that it is accessible anywhere, given that it has an online platform on which one may invest in it.
Liquidity: Digital gold is highly liquid as it can be bought or sold with ease on digital platforms. In comparison, physical gold is relatively illiquid as it may take some amount of time and effort for liquidation.
No Worries About Storage: Physical gold has to be stored in vaults, unlike digital gold, which requires no such facilities.
Low Entry Barriers: One can start investing in digital gold in smaller denomination. So, it makes gold investment accessible to a large number of people who otherwise may not be able to invest in physical gold, which usually requires a greater amount of investment.
Risks And Considerations
While these are so many advantages of digital gold, they also carry certain risks, including those related to cybersecurity threats, market volatility, and regulatory uncertainties. So, one should ideally invest in digital gold through reputed platforms and be clear of the terms and conditions prior to making the investment.
How To Invest
Here are the steps through which one may start investing in digital gold.
1] Choose a Reputed Platform: Choose a reputed platform for investing in digital gold online. Ensure that the shortlisted platforms are highly secure, well-rated, and are compliant with the regulatory department.
2] Account Opening: You will need to create an account through the portal, where general information about oneself and one’s financial status has to be filled in. This may involve verification of identification and attaching your bank account to the platform.
3] Fund Your Account: Deposit money into the digital gold account, normally transferring it from banks, or by other means of payment that the website will provide.
4] Buy Digital Gold: Once the account has the required fund, you can buy the gold digitally in certain specific denominations. The site will provide you with choices regarding buying gold as per your investment goals.
5] Tracking of Investment: You can also check the amount of gold (units) you own on the dashboard of the platform. You can check the latest price, buy more, or liquidate your investment in accordance with your needs.
Digital gold represents a modern and flexible way of investing in gold, fusing advantages that normally come with the ease of digital transactions. If an investor is properly educated in how to invest in gold and is informed of the risks, he/she can make informed decisions and safely invest in this new asset class.
