Across sections of society, Indians have conventionally displayed an affinity for buying and investing in gold. The yellow metal has historically been a reliable hedge against economic downturns and inflation. When the S&P 500 Index dropped by 56.8% during the 2007-2009 recession, gold prices went up by 25.5%. From what we’ve seen so far, gold has been a reliable hedge globally. Seasoned investors who understand that the market is too difficult to be timed, continue to allocate some proportion of their investment portfolio to gold.
The Preferred Investment Choice
With the dynamic changes in the gold price
Digital Gold as an asset is available with companies such as MMTC
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A report by AxisMyIndia reveals that Digital Gold has emerged as a preferred investment option for consumers in Tier 1 and Tier 2 regions. With a return of 15% during FY23, gold has surpassed market
Moreover, there are no unwanted worries about the security and safe storage of Digital Gold, unlike physical gold, which needs to be stored safely in a locker or bank vault, inflating the overall costs of its purchase and maintenance. Since Digital Gold is asset-backed, MMTC-PAMP stores an equivalent amount of physical gold in its bank-grade secure vaults without any extra storage charge. The customer’s Digital Gold holdings are fully insured to safeguard against any eventuality.
Indians are known to purchase gold on auspicious days, festivals and weddings. With the ability to purchase gold in micro quantities, Digital Gold permits investors early entry into the investment world. The Digital Gold that accumulates over time can be redeemed later in the form of 24K 999.9+ purest gold coins and bars.
Varied Benefits of Digital Gold
Ease of online purchase: It is very easy, affordable and convenient to buy Digital Gold. Investors have the option to invest in Digital Gold via multiple trustworthy channels, e.g., authorised channels backed by Digital Gold providers such as MMTC-PAMP, whereby 999.9+ purity is ensured. Digital Gold can be sold back to the platform at the prevailing market rate.
Assured 999.9+ purity: While there is some risk of buying impure physical gold from local markets, Digital Gold always comes with an assured purity of 999.9+. Therefore, buyers are assured that each unit of Digital Gold is 24K along with 999.9+ guaranteed purity.
Storage in bank-grade vaults: Since Digital Gold is insured and is held in bank-grade vaults, no undue concerns arise about its loss or theft, as could be the case with the storage of physical gold. If investors want to convert Digital Gold into its physical form, this can be done seamlessly using the Redeem functionality available on trusted channels
Sans storage fees: With Digital Gold, investors don’t need to incur the high storage charges of physical lockers. Digital Gold providers store the same safely in their secure bank-grade vaults. This means that even small investments in Digital Gold can be made safely and redeemed in cash or physical gold later if investors so desire.
An alternate to SGBs and ETFs: Easy liquidity and convenience make Digital Gold a better alternative than gold ETFs and funds as there are no strict entry-exit barriers through lock-in periods, unlike SGBs or ETFs. There is no prerequisite of a Demat account for a Digital Gold investor.
In addition to buying and selling Digital Gold, MMTC-PAMP’s digital ecosystem offers many benefits as it provides live cost tracking and complete visibility of investors’ gold and silver portfolio holdings. As India’s only LBMA (London Bullion Market Association) accredited precious metals refinery, MMTC-PAMP remains the leader in Digital Gold.
Driven by this broad spectrum of benefits, Digital Gold has become the new-age gold standard in investment options, thereby democratising gold investments in India.
(By Amul Kumar Saha, Chief Digital Officer – MMTC-PAMP. Views are personal)