Gold has been a reliable form of investment for a long time. However, it is often hard to store, as it carries the risk of theft. But in recent years, several companies have started offering digital gold investment options, and young investors are rushing to buy them.
Young investors have grown up with technology and know much more about digital marketplaces than older investors. So, when digital gold companies started offering investments, young investors quickly took up the opportunity. These companies offer secure storage for the gold and ensure the highest quality, so investing in digital gold is relatively safe.
Moreover, it eliminates the need for physical transactions, which has made the process much faster and easier for investors. As gold prices continue to rise, digital gold investments are also becoming more and more popular.
These are the reasons why young investors prefer to invest in digital gold.
1. It’s safer
When you buy gold jewellery or coin as an investment, there is no sure way to know if it is pure or legitimate. So, in case you get impure gold, you will suffer a huge loss when you try to sell it. With digital gold, there is no such risk. You can only buy certified 24K gold.
Moreover, if you buy physical gold, you must shell out a large sum of money for a coin or jewellery, so there is a higher risk associated with it. However, when you buy digital gold, you can invest as low as Rs 100 and build your investment over time, which offers you much more security.
2. Digital gold Gives Same return with no hassle
There is no difference between the price of digital gold and physical gold. So, when you make a digital gold investment, you will get the same return as you would if you bought physical gold of the same value. But when you buy physical gold, you must find a way to store it securely and keep it in good condition until you’re ready to sell it. However, when you buy digital gold, you don’t have to take any responsibility for storage or safeguarding.
Moreover, when you buy digital gold, you have to seek out a trusted seller and calculate the price and returns before investing. You can trust every seller and their calculations when you buy gold digitally.
3. Investments start from a low price
One of the major advantages of investing in digital gold is that you can buy gold worth as low as Re 1. So, even if you don’t have a huge sum to invest, you can still buy the gold in digital mode.
Most young investors start by purchasing small quantities of digital gold, and then they continue investing more and more when they can. This allows them to have a head start in their investment portfolio.
4. Easy to buy and sell digital gold
Unlike physical gold, you don’t have to go to a shop or find a trusted seller to buy digital gold. Several online marketplaces offer digital gold investment opportunities, so you can easily buy gold in Online from the comfort of your own home.
Similarly, it is also quite easy to sell digital gold online. You can sell digital gold at any time of the day at the standard transaction market rates. There is also no additional fees or charges for selling digital gold.
Physical gold has several extra costs associated with it. If you buy gold jewellery, you’ll have to pay some extra amount for the making charge. Moreover, when you store your gold in a bank locker, you have to pay monthly fees to maintain it.
However, you don’t have to worry about locker fees or craftsmanship charges when you buy digital gold. You’ll only be paying for the pure 24K gold. So, when you finally sell the gold, the total return will be your total profit.
6. Can be used as co-lateral
Gold is often used as collateral for mortgages and loans. While digital gold is a relatively new concept, it can also be used as collateral for your loans.
So, you can use digital gold just like physical gold, without being responsible for storing it.
Investing in physical gold is quite profitable in the long run, but it is even more beneficial to buy digital gold. With digital gold, you don’t have to worry about storage, which also eliminates much of the extra cost associated with physical gold investment. Moreover, there is little to no risk of getting fake or impure gold when investing in digital gold.
Additionally, with so many online marketplaces for buying and selling digital gold, it has become a prevalent form of investment among the tech-savvy population of India.
These are some of the main reasons why young investors prefer investing in digital gold. But digitally buying gold is a good option for every investor, so go to Investment apps today to know more. Also check other best investment options in 2022.