Looking For Best Investment Plans? Place Your Bet On Digital Gold!
When talking about the best investment plans that you can adopt for yourself, gold has been one of the go-to options for an eternity. Given that it holds the ‘traditional value of trust’ and its ‘demands increasing when the stock market fails’ - investing in jewellery, or sovereign gold bonds has always been a saviour. However, gone are the days when gold investments implied only jewellery, ETFs or bonds. In today’s time, an alternative has taken over. It is called digital gold. Quite like physical gold, it is a financial asset but is strictly kept to the papers (the digital format). It is stored in an online vault and is available in both 22k and 24k formats.
In this blog, we will delve deeper into the concept of digital gold, the investments in other types of gold, and what to remember before investing in digital gold. We will also inform you about the benefits of digital gold, and what makes it more attractive vis-a-vis the other forms of investments.
For the unknown, digital gold is a financial asset, quite similar to that of physical gold which is stored in a digital format, at a specified online vault. Simply put, every time you buy digital gold, the seller stores the same amount of gold (that you buy) in a specified and secured vault.
Let us quickly look at the key features of physical and digital gold -
Are you looking for investment plans for women? Or have you been searching out investment plans for senior citizens? In that case - digital gold is the way to go. Here are some of its key benefits -
On the whole, digital gold is one financial asset that is extremely liquid and helps diversify your investment portfolio in a wide way.
When one talks of any investment planning process, putting up money in the name of gold is a common affair. Having said that, the different forms of gold that people invest in include -
These are perfect for short and medium-term investors and have no additional taxes levied on them.
One of the best investment plans, this offers a fixed annual interest rate of 2.5% and has a low impact on market fluctuations. Also, given that it is backed by the government, at maturity it offers tax-free capital gains.
These are another format of investment that has minimal risk and is well-regulated by the relevant money market.
When talking of investment plan daily profit, this format of gold provides a host of short-selling opportunities. There is no security issue associated with it, and it cannot be converted into physical gold format.
Though amongst all the gold investment options mentioned above, it is digital gold that offers the best investment plan online, there are a couple of things that you must remember with regard to this. They are -
To start with, digital gold requires a wide investment range, monetarily. While some portals allow you to invest in it with a mere INR 1, others would go up to INR 100 as the minimum value. Also, as of now, the maximum amount that you can invest in digital gold goes up to INR 2 lakhs.
Also, you must remember that digital gold comes at a GST rate of 3%. Hence, when either buying or selling digital gold, you must consider this.
For the unversed, digital gold has a maximum holding period of 5 years, and after that, it has to be either sold or converted into physical gold.
If you categorically keep in mind these basic factors while investing in digital gold, you will be able to make the best investment plans related to this.
When talking of investment options long term or even investment planning process, as mentioned beforehand, compared to the other alternatives, digital gold gets more prominence. The key reasons for this are -
When you buy digital gold, it is set up in a digital vault overseas. In simple terms, this implies, that when you buy digital gold in INR, the service provider buys that same value of gold, in dollars, at an overseas location on your behalf.
Several dealers are backed by authoritative institutions like RBI, who help you purchase digital gold via the electronic payment format, and even hold your digital gold on your behalf at a specified vault.
Another reason why digital gold is considered in terms of investment options short term is due to its delivery and fungibility. You can redeem digital gold 24x7, and even exchange it for jewellery in the case of certain providers.
The pricing differs in terms of 22k or 24k gold - or in simple terms the 995/999 level of purity. The purer the gold, the higher the rate.
Lastly, digital gold has a mark of trust. The concerned dealer has a SEBI-registered independent trustee who both audits and confirms the gold holding. Thus, the chances of a loss are minimised.
It is for these reasons that investing in digital gold is ultimately so profitable vis-a-vis gold bonds or ETFs. Assuredly, for those of you who have investment plans retirement, this is a prominent option for you to explore.
Assuming you have read this post well, you are quite aware of the best investment plans that are there when it comes to investing in digital gold. Having said that, as an aware individual, it is imperative that you check out the range of plans that are there, especially with respect to digital gold and figure out which one suits you the best! For more exciting blogs like this, keep following this website.
