When it comes to buying and selling gold online, there are a few options worth learning more about, as well as understanding their strong points.
Gold purchase in any format is auspicious, including digital gold, but unlike the other options here, digital gold offers you by far the most flexibility.
- Safety: Unlike physical gold, your purchases here are safe from theft or loss. SafeGold for example, works with partners such as Brink’s India, to ensure that your gold is stored securely in their world-class vaults, and SEBI registered IDBI Security Trustees, whose role it is to protect the customer’s interests at all times.
- Convenience: You can also buy digital gold at a moment’s notice from your mobile phone
- Options to Convert: You can convert your investment into 24-karat coins, bars and biscuits whenever you want to and take physical delivery at your doorstep. You can also take your digital gold holdings and redeem them with Jewellery partners like Candere & Caratlane as in the case with SafeGold.
- Sell: You can sell your gold at the exchange rate and never lose out on sunken costs on making charges, etc. like with jewellery
- Gift: A much newer concept, but gifting gold is through a few taps on your phone is a reality! It has far more weight than regular gifts (no pun intended), while also leaving the receiver with all the options in this section (It’s scary to buy expensive jewellery only to find out the person doesn’t like it – fashion and taste is subjective!)
- Flexibility: You can buy as little as 1-rupee worth of gold, let alone a gram! It’s very conducive to piecemeal investing and even offers Gold SIPs!
A seemingly less personable option, Gold Exchange Traded Fund (ETFs) & Sovereign Gold Bonds (SGBs) have some unique features that are worth noting if you are looking to invest in gold online.
- Liquidity: Gold ETF’s are very liquid and trades on the stock exchange, with less potential for loss of value than buying-selling physical gold in short periods of time.
- Safety: ETFs and SGBs are kept in the dematerialised form and held in the DEMAT account, which is safe and easy to handle.
- Tax: Just like the other options, by holding for 3 years, you can become eligible for long term capital gain. However, the real benefit with SGBs are that if you hold till maturity and redeem after that, all of your gain is tax exempt.
- Flexibility: You can buy as little as 1 gram of gold, but we’re talking bigger investment amounts in this category.
- Return: SGBs offer 2.5% pa on the invested value, which is different from all the other options discussed.
On the balance of it all, it seems that digital gold offers all the benefits of other gold investment options, including physical gold, but also adds the maximum flexibility. Here’s a quick look at how versatile, simple and easy it can be to buy and sell gold online with ‘digital wallets’ for gold, like with SafeGold.
Buying Gold Online – 3 Easy Steps
Sell Gold Online – 3 Easy Steps
Gift Gold Online – 3 Easy Steps
Physical Gold Delivery – 3 Easy Steps
Invest in Gold Online Through SIPs – 3 Easy Steps
Exchange Digital Gold for Jewellery – 4 Easy Steps