What is Digital Gold?
Digital gold is the latest form of investing in gold that enables one to own gold without the hassle of physical storage.
Once you invest in digital gold, your gold holdings are stored securely in a bank-grade locker.
Investing in digital gold has become very popular due to its guaranteed purity and security.
Digital gold investment does away with traditional gold investment processes, which require you to have physical gold with you.
You can purchase digital gold in tiny portions, starting with a meagre amount of as low as ₹10 on the Jar app, thus accommodating all kinds of investors.
The purchase and sale processes for gold are entirely online, providing the flexibility of buying it anytime, anywhere.
How Does Virtual Gold Work?
When you purchase gold online, reputable providers store an equivalent amount of physical gold in secure vaults.
Investors receive instant ownership, with digital gold prices reflecting real-time market rates for full transparency.
All transactions are recorded, allowing users to track their investments through the Jar app.
Digital gold combines the reliability of traditional gold investment with the convenience of modern technology, making it an ideal asset for portfolio diversification and future savings.
Whether for long-term wealth accumulation or short-term financial goals, digital gold offers a seamless and secure investment solution.
Features of Virtual Gold
Digital gold offers a revolutionary way to invest in gold with features that combine affordability, accessibility, and cutting-edge technology. Here's a closer look at its standout attributes:
Affordability and Accessibility
Many platforms allow investments in smaller denominations for buying gold online, making gold ownership feasible for a broader audience. This feature enhances its appeal to individuals with diverse financial capacities
Security and Transparency
Powered by blockchain technology, digital gold investment guarantees secure and transparent transactions. Each transaction is permanently recorded on a decentralised ledger.
This lowers the risk of fraud and makes it possible to trace ownership.
Liquidity
An investor can convert his gold holding into cash immediately using digital gold's high liquidity factor; therefore, this is an excellent choice for those who prefer a flexible and comfortable investment mode.
Global Accessibility
Anyone can buy digital gold online, regardless of geographic constraints. This global reach makes investing in digital gold a versatile option for investors worldwide.
Digital gold emerges as one of the best digital gold investment options, combining the timeless value of gold with the convenience of modern technology.
Stay informed about the gold rate to make the most of this innovative investment method.
Benefits of Digital Gold Investment
Digital gold brings numerous advantages, making it a popular choice for contemporary investors.
Whether you're considering buying gold online or looking for a safe and accessible investment option, here are the key benefits of investing in digital gold:
Cost-Free Storage
Digital gold eliminates the expense and hassle of physical storage. The Jar app securely holds your gold in vaults, so you don’t need lockers or incur additional charges.
Real-Time Market Pricing
With digital gold, you can buy or sell gold at live market prices. This transparency ensures you get the best value for your investments, unaffected by hidden fees.
Convenience of Conversion
Digital gold can be easily converted into physical gold. You can request bars or coins delivered to your doorstep or traded through trusted exchanges.
It is a new way of investing for the modern-day investor, where the old gold meets the latest technology, making it a completely feasible option for anyone seeking information about the benefits of buying digital gold or looking for how to purchase or invest in digital gold online.
Who Should Invest in Digital Gold?
Digital gold is a great option for:
- Students who are in college.
- Working professionals who want to save for a short term or long term.
- Beginners looking for an affordable entry into gold investment.
- Investors wanting a liquid asset to diversify their portfolio.
- Tech-savvy individuals who value real-time price tracking and transparency.
You can also buy digital gold to gift to your loved ones
What are the Tax Implications on Digital Gold?
Similar to physical gold, digital gold is also subject to tax. The main difference is that you can purchase them online, and the issuer will securely store them in vaults for you.
Furthermore, regulatory bodies such as the RBI or SEBI have no jurisdiction over this type of investment.
Digital gold is subject to taxation under income tax regulations for gold purchases. Gains from gold held for 36 months or more are classified as long-term capital gains (LTCG), while those from gold held for a shorter duration fall under short-term capital gains (STCG).
The sale of digital gold incurs a tax of 20%, similar to physical and paper gold. For STCG, the tax is determined based on your applicable income tax slab.
Know about the other tax benefits of buying Digital Gold.
Why Buy Digital Gold from Jar?
Jar stands out as an excellent platform for purchasing digital gold, offering users a seamless and secure investment experience. Here are the key benefits of buying digital gold through Jar:
Trusted and Secure: Jar collaborates with reputable gold providers like SafeGold & Brinks, ensuring your investment is backed by 24K gold stored in secure vaults.
User-Friendly App: The app simplifies the process of purchasing gold with just a few taps, catering to beginners and experienced investors alike.
No Minimum Investment: Start with as little as ₹10, making gold investments accessible to everyone.
Real-Time Pricing: Stay updated with live digital gold prices to make informed investment decisions.
Easy Redemption Options: Convert digital gold into physical gold or cash anytime, with delivery options for coins and jewellery.
Savings Integration: Jar enables micro-savings, automatically rounding off daily transactions and investing the spare change in digital gold.
Regulated and Transparent: Enjoy a transparent investment experience, with gold purchases recorded and accessible within the app.
Jar empowers users to invest in digital gold effortlessly while ensuring safety and transparency.
FAQ for Digital Gold
Is it good to invest in digital gold?
Yes, it is advisable to invest in digital gold, as it is a popular investment choice, giving investors security and flexibility in investing, as there is no minimum investment amount to invest in pure 24k gold and no making charges.
Does the RBI approve digital gold?
As of now, the RBI does not regulate digital gold. However, the Reserve Bank of India (RBI) has issued several regulations governing digital gold investments.
These regulations are designed to protect consumers and ensure the safety and security of digital gold investments.
Is digital gold tax-free?
Digital gold is taxed similarly to physical gold, with capital gains tax applying upon sales. However, it does not incur tax on making charges, as there are no making charges involved in purchasing digital gold.
Digital gold is taxed similarly to physical gold, with capital gains tax applying upon sales. However, it does not incur tax on making charges, as there are no making charges involved in purchasing digital gold.
Is digital gold better than FD?
Even though FDs offer assured and steady returns, they might not be able to outperform inflation, particularly in situations where it is high. However, gold is more volatile in the short term but has the potential to outperform inflation in the long run.
Is there any risk in digital gold?
Digital gold is generally considered a safe haven. It provides you a security vault and stability as the prices of gold increase in a stable amount compared to other online or offline investments.
Can I withdraw digital gold?
Yes, you can withdraw digital gold from the Jar app. You have the option to withdraw digital gold in cash or convert it into physical gold (coin or jewellery) using Nek. However, it is advised not to withdraw, as digital gold will give you higher returns in the long term.
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