Digital gold is becoming a feasible option for people who want to invest in gold. Short-term investors are also interested in purchasing digital gold because it is generally stable and can give passive income.
Here are several options for purchasing digital gold:
1) Gold Wallets on Apps
Several companies, including Wizely, have recently introduced gold wallets.
Did you know you can buy gold from as low was Rs 10 on the Wizely app? You can even earn rewards up to Rs 25 lakhs on the Wizely app. See for yourself, download the app right away!
PhonePe, GPay, and Paytm are also some other companies that offer this service to their customers.
The digital gold is kept in highly secured gold vaults. The gold purity is predetermined, and it may be traded and acquired at any time and from any location using these mobile applications.
2) Sovereign Gold Bonds (SGBs)
The Reserve Bank of India (RBI) issues sovereign gold bonds on behalf of the government.
- These bonds were first issued in 2015 as part of the Gold Monetization Scheme. The RBI issues these bonds in several tranches throughout the year.
- Each bond represents one gram of gold, allowing investors to invest in gold digitally.
- These bonds have a favourable annual interest rate of 2.5 per cent, paid semi-annually by the RBI and added to the return.
- SGBs are considered exceptionally stable because the government backs them.
- The RBI offers a redemption option after the fifth year on these bonds, which have an eight-year term.
- Liquidity is provided by the bonds' ability to be exchanged on stock markets.
- Individuals are limited to 4 kg, and Hindu Undivided Families (HUFs) are limited to 20 kilograms per year.
Sell your digital gold anytime anywhere and receive money directly to your account with Wizely!
3) ETFs that Invest in Gold
The term "exchange-traded fund" refers to a mutual fund whose units can be purchased on stock exchanges. SBI Gold ETF, AXIS Gold ETF, and Nippon Gold ETF are a few asset management companies (AMCs) that offer their own gold ETFs.
Gold ETFs are a practical method to invest in tiny amounts of gold.
- These are ideal for investors who want to acquire gold in tiny amounts and store it in a Demat account.
- These AMCs invest the money in gold with a purity of 99.5 per cent, making it a secure investment.
- This is a beautiful alternative for small-cap investors, such as students, who want a gold allocation.
Invest in gold for as low as Rs 10 on Wizely and earn rewards every time!
Investing in gold ETFs has several advantages.
- Gold purity is guaranteed to be 99.5 percent pure.
- The mutual fund business is governed by SEBI, which alleviates concerns about safety and security.
- These funds have low expense ratios, such as the Nippon Gold ETF, which has only 0.39 per cent, making it an economical purchase.
- Various financial organizations simplify investors to borrow money against these ETFs.
Also read: 5 Reasons to Invest in Digital Gold
4) Commodity Exchange (Multi-Commodity) (MCX)
One of the ways to trade gold is through a multi-commodity exchange. MCX provides a trading platform for various commodities, including gold, silver, copper, and other metals. Traders use this platform to trade futures and options in commodities.
Traders can also utilize the platform to hedge their positions in gold and other commodities. The metal can be exchanged in various quantitative options such as 1 gram, 8 grams, 100 grams, and 1 kg units.
(Check out 'Learn & Grow with Wizely' to read and learn more all about investment instruments.)