With the swiftly changing and enormously rapid advancement of digital technology, numerous factors have been undergoing digital reformation over the past decades. Accordingly, various types of investment also experiences its impact, and gold is one of them. While in the past we buy physical bars of gold, now it becomes digital.
That said, what is a digital gold investment? Put simply, it is a form of investing in physical gold. To conduct the investment, one simply requires a single tap through various apps available on smartphones. After investing, the gold on a particular quantity will be stored by authorized vendors on behalf of the investors/buyers.
Dissimilar to purchasing gold from a jeweler, digital gold is only available for investment purposes. In other words, buyers can buy and sell their ownership of gold online like all investment nowadays.
The sellers of this gold are vendors or producers who have partnerships with digital-platform banks, brokers, or fintech firms. Thus, if you own a digital gold, vendors will keep your gold and act as a custodian. The name of the vendors is present on the apps.
The advantages of this type of investment vary. Since the apps disclose every bit of information pertinent to gold purity, protection, and price, buyers can track everything down to ensure their safety. However, the grave disadvantage is that little to none policies are present to regulate the investment.
Also Read: Gold Investment is More Profitable Than Other Investment
A Trend to Invest in Digital Gold
The trend to invest in digital gold is crystal clear in India. For decades, Indians have been familiar with ownership of gold, including the acts of buying and selling gold. Gold has become a solution if one wants to invest but the economy or other markets are, at that particular minute, in turmoil.
The existence of this investment eases Indians to own gold effortlessly. Through a simple tap, Indians are capable of owning a certain portion of gold. Additionally, the price is also inexpensive for they can afford in for INR 1.
Although, in the recent time, digital gold investment does not show a high transaction number, it is still highly potential in the future. However, identical to the aforementioned disadvantage, the lack of regulation will surely induce a problematic issues sooner or later.
