216 views 4 mins 0 comments

Perks and Challenges of Investment in Digital Gold 

In Business
June 19, 2023
Investments in Digital Gold 

India is the second largest consumer of gold in the world. It is considered very sacred and auspicious to give gifts and buy on some occasions like weddings and Diwali. Indian women wear jewels made of gold. Investors include this yellow metal to invest in their portfolios to make investments diversified and more fruitful.

As Digitization changed the method of payment in India, it is going towards change in the traditional method of buying gold. This new concept is called digital gold. Digital gold is a new-age version of buying gold through online channels. It is more convenient to buy gold online in terms of quality assurance, storage safety, and maintenance.

Advantages to buy Digital Gold

  • Pure Gold: The Yellow Gold which is bought through online channels is 99.99% pure gold of 24 carats. 
  • No Lower Limit: There is no minimum limit to buying gold. A person can buy digital gold for as low as rupee 10. 
  • Secure storage vaults: There is no risk of losing your gold due to robbery, snatching, or misplacing.
  • High liquidity: One can sell his digital gold anytime at the current market price. In addition to this flexibility, one more perk is that it can be exchanged with coins and bars. Coins and bars will be delivered to your doorstep.
  • Easy to purchase: One has not to go to the market to buy digital gold. Just by following a few steps online, anyone can buy or sell digital gold anytime. The process of purchasing is quite hassle-free and easy.

Cons to buying Digital Gold

  • Upper investment limit: In most of the channels of Digital Gold, Investors can not buy gold up to 2 lakhs rupees. So it is not an appropriate option for significant investors who have a good amount of money to invest.
  • Lack of regulatory body: There is no official body like RBI and SEBI that regulate the terms and conditions of digital gold. 
  • Limited period of storage vaults: In most of the platforms of digital gold, the storage facility is given for a fixed period of 6 months. After that period, investors have to renew the policy.

Where To Buy Digital Gold In India?

MMTC-PAMP India Private Limited is one of the well-known companies assisting investors in purchasing digital gold. It counts fintech firms like Paytm and PhonePe, banks like HDFC Bank and ICICI Bank, as well as brokerage firms like Motilal Oswal and Angel Broking among its intermediaries who help with the sale and purchase of digital gold. 

The Stock Holding Corporation of India, an Indian distributor of securities that assists investors in buying gold through a scheme called GoldRush, also facilitates the trading of digital gold. With the help of GoldRush, you can set up an online account to which money can be deposited in order to amass gold for as little as INR 100. Gold can be withdrawn at any time by customers. 


Digital gold is a modern and easy way of investing is gold as it is more easily accessible and available through various UPI apps like Paytm phone pay, etc. Akshay tritya is an auspicious day to buy gold as gold is associated with the goddess Laxmi which brings prosperity to human life.