Can Investing in Digital Gold Be Profitable in the Long Term | Motilal Oswal
Can Investing in Digital Gold Be Profitable in the Long Term | Motilal Oswal

Can Digital Gold Investment be Fruitful in the Long Run

A simple way, and the way that most Indians ensure long term investing capital, is to buy gold in its physical form, such as coins, bullions, jewellery, etc. Viewed as a long term appreciation asset, gold is the mainstay of investors, large and small, in India. Moreover, in the form of jewellery, it is bought at every festival and for every occasion, in the form of jewellery that can be worn and passed down through generations. 

 

  • About Digital Gold
     

You may not want to buy physical gold jewellery for simple investment purposes, as it may be hard to store securely, or you may have enough already. However, recently, traders have explored the investment arena of digital gold investment or ETFs (exchange traded funds) Called ‘gold funds’, these let you put your money safely into e-gold. This is an investment alternative that’s available online to investors and is the most cost-effective and efficient way to invest in gold, without the bother of storing it in your locker or safe. In India, you can make an e-gold investment through companies like the state-owned Metals and Minerals Trading Corporation of India or MMTC and smaller finance corporations. Since gold rates have remained steady over the past few years, and rebounded in the first quarter of 2021, an e-gold investment may be better to yield some fair returns compared to interest that you get from current bank fixed deposit schemes. 
 

  • Why invest in Digital Gold?
     

Each unit of digital gold that you may purchase is backed up by 24 karat 99.9% of pure gold. For one thing, you don’t have to worry about the purity of the metal. The key advantage of gold investment for the long term is not just because you’re guaranteed returns, but because investments begin as low as INR 100.00. Even if you aren’t a big investor willing to take much risk, you can gradually build up your e-gold portfolio over time. Furthermore, you have the freedom to invest online, at any time. Selling your gold units can also be done conveniently online at current gold market rates. Here are some more reasons to invest in this asset:

  • E-gold acts as a hedge to beat inflation
  • It is easy to buy and easy to sell
  • Acts as an emergency fund for fast cash
  • You can start with baby steps and build up your asset
  • Creates wealth
  • E-gold is a tangible asset
  • E-gold is a secure asset
  • It allows for a diversification of your investment portfolio

You may be wondering where your e-gold investment is placed once you purchase it. When you buy digital gold, it is placed in a secure ‘vault’. You don’t pay any extras (as you would making charges on bullion and jewellery), so you save while you buy. Transactions happen at market prices and this ensures security as well as transparency.

Related Articles: Is Investing in Digital Gold the Right Choice for You | Beginners guide to digital gold investment | Is Bitcoin Digital gold or can its value go down to Zero | 3 Ways To Invest in Digital Gold Online

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