Investing in digital gold like ETF is a convenient option. You do not have to face issues of verifying purity or worry about making charges as well as worrying about storage. IT’s a wiser and safer option to invest in ETF as their value is equal to physical gold and upon encashing it, you get the equivalent amount in cash.
But isn’t that riskier in and of itself?
Why did you come to this conclusion?
I didn’t come to that conclusion. I asked a question.
With time, most investors have become wary of storing physical gold as it is associated with the risk of getting stolen or damaged, or the storage costs ate into the price increase. This is where digital gold started making a place in the investment landscape.
If you plan to invest in digital gold or Me Gold, as offered by Motilal Oswal, the stockbroker offers a user-friendly platform and a one-stop solution for ease buying and selling their digital gold.
Digital gold is similar to physical gold, minus the hassle of storing and safeguarding it. When you buy digital gold, all you get is an entry in a ledger. When you sell it to a buyer, the gold is digitally transferred to the buyer, and the money is credited to your account. You also have the option of converting digital gold into physical gold at any point.
There are many benefits of investing in digital gold:
• No storage or security costs
• You can start investing in gold, with as low as Re.1
• The redemption process is simple and hassle-free. You get a 24 karat, 999.9% purity physical gold in exchange for your digital gold.
• The price of digital gold is usually linked with the international markets. Hence, you can be assured of a fair price when you sell it.
How stable is digital gold from a bubble position?