It is Diwali season again, and we are all excited to avail the best deals on all online shopping. Before Diwali, we usually prefer to buy gold on the auspicious occasion of Dhanteras.
Jewellers come up with the best deals and offer multiple types of discounts during Dhanteras; however, there has been a shift this year where people are choosing to shop online over the traditional way of buying gold.
Let us look at some reasons why you might want to buy digital gold against physical gold.
Pros and Cons of Buying Physical Gold versus Digital Gold
1. Locker Charges - When buying in decent quantities, people usually prefer keeping their physical gold in bank lockers instead of their homes. This ensures the safety and reduces much of the headache. However, this comes with its own set of charges for maintenance and safekeeping. There is no need to worry about this with digital gold.
2. Theft Risk - If you do not choose to keep your physical gold in a bank, then the risk of theft is always there. You might also be in a difficult situation if you go out of the station often and have to lock your house when you leave. Your digital gold stays safe in your online account, which you can access anytime and anywhere through any device.
3. Purity Risk - Even if you buy gold from a trusted brand, the fear of buying impure gold is always there. Cases of frauds of these types are common, and it is a risk that cannot be ignored since when you go back to sell it to a jeweller, they will run a thorough quality check. There is no need to worry about this risk as well with physical gold.
4. Making Charges - If you choose to buy gold in the form of jewellery, thinking that it will solve both purposes, then you might want to rethink your decision. Jewellery makers charge making charges, which means that even if you sell it the next day, you will not get the same amount of money back even if the prices remain the same.
5. Legal Mixing - If you are buying gold in the form of jewellery, you should also be aware that jewellers can mix some percentage alloys to make the delicate designs you get. This is also discounted when you go back to sell your jewellery, costing you money.
With the popularisation of Gold Exchange Traded Funds (ETFs) and other ways to invest in gold digitally, it is becoming popular among the coming generations during Diwali and Dhanteras festival.
Switching to digital gold is the best deal that you can make this festival season. Opt for these smart ways to buy gold this Dhanteras. Multiple apps will allow you to buy gold through these instruments at actual costs. Some examples would be ‘Groww’ and ‘ET Money'. Most banks will also give you this offer; however, you must make sure that you read all scheme related documents carefully and understand the investment you are making.