Digital Gold

What is digital gold?

• Digital gold is an electronic 24 carat of 99.9% pure gold based on the actual mass units of physical gold, secured in vaults by security agencies
• Just like regular gold that can be bought and sold, digital gold can be traded online on various banking /trading websites
• The money is paid online and the seller provides a certificate of ownership of the gold purchased, and stores the physical gold in an insured vault on behalf of the customer
• Digital gold can also be converted to physical gold by converting the digital units into physical gold coins or bars

Why should you buy digital gold?

• It is stored in a government vault and the chance of theft is low. Not only is it safe, it is also 100% insured
• You can also exchange your digital gold for physical by contacting your seller and having it delivered to your doorstep 
• Every year, you receive interest on the price of the gold, earning a passive income
• Buying digital gold allows you to monitor  the value of your investment anytime and anywhere from your device
• Digital gold helps the nation reduce its imports of this precious metal

Digital Gold during Crisis

• During a crisis period, currency may lose value; but gold usually does not.
• Usually the price of gold trades inversely to equities.
• During a crisis investors adjust their portfolios to less riskier assets
• They would rather invest in gold thqan in equities whose value is seen to fall as business activity slows down or even comes to a standstill. (2020 Lockdowns).

Institutions dealing in digital gold

• The links below are government – authenticated banks where you can learn more about digital gold, and also trade it –
  
  • https://www.axisbank.com/progress-with-us/money-matters/save-invest/know-what-is-digital-gold-and-its-benefits
  • https://paytm.com/digitalgold
  • https://www.bajajfinservmarkets.in/digital-gold.html
  • https://www.safegold.com/
  • https://www.tanishq.co.in/digigold/home/
  • https://www.pcjeweller.com/digital-gold.html

Summary

• It is always advisable to have a certain percentage of your assets in gold (Preferably digital gold)

• Buy gold in instalment every month during an equity boom when the price of gold usually decreases

• Use the gold certificates in emergencies to take short term loans (Usually this is done in minutes online if the instruction you are taking the loan and the digital gold issues are the same)

• While you may not get dividends like equity, you do get a 2.5% interest per year

• During a crisis period; such as war, recession, etc: sell a medium portion of your digital gold