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Why invest in Digital Gold in India

Introduction

Gold has always been considered a solid investment in India. Currently, India ranks as having the second highest demand for gold in the world, with China ranking as the first (1). Over the last two decades, digital gold has established itself as a smart and convenient method of investment, substituting physical gold. Digital gold allows users to buy and save real 24K gold without the risk of theft, damages, or loss. The digital gold you buy is stored in safe and secure vaults that are 100% insured. If you do not want to trade with your digital gold regularly, you can also get it converted to physical gold coins or bars, and delivered to your doorstep. Grow your investment portfolio with a monthly plan, put aside a small amount every month to trade and invest in digital gold.

1. Start investing in Small Amounts - Enjoy Minimum Risk with Maximum Returns.

Gold has often proven itself to be a very safe and stable investment option. However, jewellery and other forms of gold normally require a good amount of initial investment in order to turn a profit, eventually. Even today, it is difficult to buy physical gold in small quantities for a lower amount. With the advent of digital gold, it has become much easier to treat your gold purchases like savings. Let’s see how.
With KreditBee, you can buy digital gold for as low as ₹10. This means that you can accumulate gold by saving up in small amounts. You can keep buying digital gold for smaller amounts and eventually save up a large quantity of gold. If you want to store your gold physically, you can get your digital gold converted to physical gold and delivered to your doorstep at your convenience. So, if you use a small percentage of your disposable income every month to buy digital gold regularly, it will eventually bring you good returns on your investment.

2. Trade and invest in Digital Gold - Grow your Portfolio the Right Way.

Hundreds of thousands of Indians have been buying gold jewellery for the last few decades. Although a lot of the gold is bought as an investment, only a small percentage of the population seriously considers it as an investment that brings returns. As a matter of fact, most of the gold bought in India ends up being stored for long periods of time. One study found that Indian households have piled up around 24,000 - 25,000 tonnes of gold overall(2). This gold is usually passed down through generations for weddings and other special occasions. The Indian government has also started a number of gold monetisation programs and schemes to bring this gold back into the economy. Unfortunately, these programs have received very little response from Indian households.

When it comes to digital gold, the entire process of buying, storing, and selling gold becomes much easier because all the transactions happen online. You can buy digital gold when the price goes down and sell it for a profit when the price goes up. You can use digital gold to retain your wealth for long periods of time as well. While almost every other market from stocks and bonds to cryptocurrency has seen big fluctuations over the years, the price of gold has been comparatively less volatile and steadily increased year on year.  

3. Gold proves to be a safe investment option.

Inflation has been at an all-time high. Several markets around the world have faced serious consequences because of it. The annual returns of many investment options have been diminished greatly because of inflation over time. However, gold has remained steadfast and the annual returns that it provides has been increasing quite a bit over the last few years. With a great annual return of 31.05% in 2020, gold was even considered as having the second best annual return since the financial crisis in 2008(3). Apart from a sound investment option, digital gold is also an excellent option for the retention of wealth. The long-term results of parking money in digital gold are very beneficial. It has even been known to act as a hedge against inflation. You can also save up your money by buying digital gold and allowing it to grow at its own pace for a couple of years. The rates of the returns have even proven to be better than FD interest rates in some cases.

4. Use digital gold to avoid all extra charges.

One of the main benefits of digital gold over physical gold is that there are no extra charges. When buying physical gold, there are making charges, wastage charges, and a number of other charges levied while making or even shaping the gold into its desired forms. Digital gold allows you to skip all these charges and lets you hold your gold virtually. This also helps you avoid depreciation charges as well as damages to the gold that naturally occur over time. KreditBee offers real 24K gold with 99.5% purity. This means that you can own pure gold without worrying about any of the risks that it brings. While merchants and retailers impose their own charges on physical gold products, digital gold is sold on KreditBee at live market prices 24 hours a day. So you can buy, invest, or even accumulate gold at your convenience without worrying about extra charges being levied on you. You can also get your digital gold converted to physical gold and gift it to your loved ones for special occasions.

Conclusion

To sum up, gold is a safe and stable investment or purchase, and digital gold is an even more convenient and safe means of procuring gold and holding it for a while. You can choose to treat it as a short term or long term investment based on how you want to plan your finances, but if you want to build up your finances, KreditBee 24K  gold is a reliable route to take.

References:

  1. Top 5 countries highest demand gold article
  2. Shining bright India's household gold reserves touches 25k tonne over 40 of GDP
  3. Year 2020 annual gold return best since 2011 major milestones in precious metals this year
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