How Can You Play It Safe With Digital Gold Investments?

While we know that Digital Gold is a safe and secure investment, as it is in Digital form. Still, as an investor or a buyer, we need to be aware of certain things that need to be kept in mind when we are purchasing gold. 

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Things to Keep in Mind While Investing in Digital Gold

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We should be aware of our purpose of investment. Digital gold investments are best suited only when we are purchasing them solely for investment. Once we decide to withdraw our investments, we are given two options: to sell the gold and withdraw money or to get the actual gold delivered to us.

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The former is simple: we get back our money equivalent to the prevailing gold prices.

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However, opting for the latter will attract delivery charges for delivering the gold to our doorsteps. Further, the gold can either be delivered in the form of coins, biscuits, or jewelry. In any case, it will involve making charges.

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Thus, getting gold delivered to our doorsteps is ideally unsuitable as it reduces our returns. However, we can still go for the same if we want physical gold for any of the purposes.

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‍Choose a Reputable Platform

The first step in the purchase of digital gold is buying is to choose a trusted and reliable platform for the purchase of Digital Gold. Platforms like Jar, MMTC-PAMP, SafeGold, Augmont, Paytm, and Google Pay are some of the popular platforms. 

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Do check the customer reviews and feedback before making a purchase.

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Check Purity & Certification

Check if the gold you are getting is 24kt (99.99%) Purity gold.

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Ensure the platform provides a certificate of authenticity from a trusted body like BIS or LBMA, at the time of conversion of Digital Gold to Physical Gold.

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Redemption & Liquidity

While purchasing digital gold, do ensure that the platform also allows you to sell your Gold anytime at the market price. Check if you can convert digital gold to physical gold (coins or bars) and have it delivered. 

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Jar allows you to sell your digital gold anytime or even pause or stop your investment in digital gold.

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Payment of GST

When you buy digital gold, you must pay a 3 percent GST tax, exactly like when you buy actual gold. 

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So, while estimating the budget for your investment, make sure to factor in the expected GST amount.

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Delivery & Making Charges

 When you are purchasing digital gold, you have to pay some charges at the time of converting it into physical gold and getting it delivered to your home.

Therefore, you have to pay the delivery charges at the time of converting it into physical gold.

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Period of Investment Restriction

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While investing in digital gold, you should check with the platform if you have invested if there is a set time duration for which you will have to invest. 

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At Jar, there is no time restriction on the period of investment.

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To Conclude

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We should go for trusted sources and read the terms and conditions carefully before investing – the precaution we always take before investing in any instrument.

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Jar is an ideal and trusted investment platform that allows us to invest in digital gold. It is a daily investment app that helps us adopt a disciplined investment approach. We can automate investment in digital gold and start investing with as low as Rs. 10.

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Further, we can gift digital gold to our near and dear ones using Jar. Have you started investing in digital gold? If not, then it’s time to bring a change to your investments with Jar!

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