Buying gold on auspicious occasions is a part of Indian traditions. During festive seasons, there is an increased demand for both physical gold and digital gold, mainly driven by traditions and customs. Also, the desire to celebrate special occasions with high-priced metals like gold contributes to increased gold investment during the festive months between September and Diwali.
Digital gold investment is a relatively new way to buy gold online, and it is the best alternative to purchasing physical gold. Investors can now purchase digital gold, where an equal amount of physical gold is stored in a secured vault. You can invest from as minimum as ₹1. Let us dive a little deeper into digital gold investment.
An Overview of Digital Gold
Digital gold investment is a concept of a commodity that can be very useful in building a diverse investment portfolio. By using digital access to the product, yellow metal investments can be made in small quantities for a certain period of time from anywhere.
There are different ways to invest in digital gold:
Gold Exchange Traded Funds (ETFs): Gold ETFs can be easily purchased and sold on stock exchanges like common stock. To start trading in gold ETFs, investors must buy at least one unit equal to one gram of gold.
Gold Mutual Funds: You can easily add to your portfolio by buying shares in mutual funds. Certain mutual funds base their holdings on assets exposed to the gold market and stocks of gold mining companies internationally.
Gold Futures Contracts: Standardized gold futures contracts are traded on organized exchanges. In India, popular exchanges for gold futures trading are the Multi Commodity Exchange (MCX) and the National Commodity & Derivatives Exchange Limited (NCDEX).
Sovereign Gold Bonds (SGBs): SGBs are issued by the government of India via the Reserve Bank of India (RBI). These bonds are not yet popular but are considered profitable due to their comfortable returns on investment.
How to Invest in Digital Gold with multipl
Investing in digital gold through multipl is a straightforward process. Here are the steps to invest in digital gold with multipl:
1. Download the Multipl App
To get started, download the Multipl app from the Play Store (for Android) or the App Store (for iOS).
2. Register and Sign In
After downloading the app, open it and complete the registration process. You’ll need to provide your mobile number and create a password.
3. Explore Digital Gold
In the Multipl app, navigate to the “Digital Gold” section. Here, you can view the current gold prices and buy digital gold.
4. Buy Digital Gold
Choose the amount of digital gold you want to purchase. Multipl allows you to buy gold in smaller denominations, making it accessible to many investors. With multipl, you can start saving for digital gold with as little as ₹33.
5. Review Your Holdings
After buying digital gold, you can review your holdings in the app. Multipl provides real-time updates on the value of your digital gold investment.
6. Sell or Redeem Your Digital Gold
If you decide to sell or redeem your digital gold, you can do it anytime without any hidden charges. Alternatively, you can redeem it with a brand to get brand vouchers.
Benefits of Investing in Digital Gold
Convenience: Unlike physical gold, digital gold can be purchased and sold online without requiring physical storage.
Liquidity: Digital gold investments are highly liquid. You can easily sell your digital gold holdings and convert them into cash or other assets.
Transparency: Digital gold platforms like multipl provide real-time updates on gold prices, ensuring transparency in pricing and allowing investors to make informed decisions.
Security: Digital gold investments are generally secure, and multipl uses encryption and robust security measures to protect your holdings. There’s no risk of physical theft.
Diversification: Investing in digital gold can be a part of a diversified investment portfolio, offering a hedge against market volatility and currency depreciation.
Risks of Investing in Digital Gold
Market Risk: Digital gold investments are subject to market risks. If you buy when prices are high and sell when they are low, you may experience loss.
Limited Asset: Gold is a non-income generating asset. Unlike stocks or mutual funds, it does not provide compounding or interest income. You rely solely on price appreciation for returns.
Regulatory Changes: Government regulations can affect the gold market and the taxation of digital gold. Changes in policies may impact the benefits and costs associated with digital gold investments.
Investing in digital gold through Multipl is a convenient and accessible way to add gold to your investment portfolio. However, it’s important to conduct thorough research, consider your financial goals, and assess your risk profile before investing.
multipl is the world’s first “Save Now, Buy Later” app, which helps you spendvest through goal-based savings.
Based on the duration, purpose, and risk profile, multipl allocates appropriate assets (mutual funds) in your personalised investment portfolio so you can reach your goal with maximum safety and liquidity. You can create both short-term and long-term savings goals like Digital Silver Goal, Digital Gold Goal, Gadget Goal, Vacation Goal, Child’s Education Goal, Retirement Savings Goal, Down Payment Savings Goal, and many more. In addition, brands contribute with you to save more towards your goals. To learn more, download the multipl app on Android & iOS now!