Gold is known to be a luxury metal for most and has the utmost value when compared to other metals. Be it the wedding season or any celebration, buying gold is regularly connected with prosperity. As our whole world is going digital, why not our gold? With the pandemic and lack of movement in the current market, digital gold is a highly viable option.
What is Digital Gold?
Digital gold is a promising and practical approach to collecting the yellow metal for individuals who prefer it in its physical form. Digital gold empowers you to purchase, sell and gather pure gold in divisions whenever and where ever. Consequently, even with a minute investment of Rs. 100, one can purchase a specific amount of the metal. Due to the ease with which the purchase can be made and the safety involved, digital gold is quickly acquiring a foothold in the investment community.
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Every gram purchased by a financial investor is supported by an actual 24K physical gold that can be effectively sold online at a market-linked gold rate.
Reasons to Invest in Digital Gold
- Trading Convenience
Trading in digital gold is more helpful than exchanging actual gold. To purchase or sell real gold, you need to reschedule your day to visit a diamond setter or a bank, which is tedious and poorly arranged. In addition, assuming you intend to purchase gold, you need to keep bank storage prepared to keep the gold safe.
On the contrary, digital gold can be purchased and sold online whenever and anyplace that too in only a couple of clicks. Also, after a selling exchange gets fruitful, there is no compelling reason to visit your bank office to store the sum as the cash gets moved to your enlisted ledger or wallet in a couple of days.
- Has High Liquidity
Gold is viewed as the most fluid resource. In any case, with regards to actual gold, there are a couple of liquidity-related issues that a significant number of us face. For example, to exchange real gold and get the total resale appreciation for it, you need to offer it to the seller from whom you had obtained it in any case. The vendor could be anyone – a bank or a gem specialist. In addition, you should have the buy bill; else, you won’t get the total resale appreciation on your gold.
Digital gold conquers these issues easily, as to sell it, you don’t have to visit a seller or protect the bill of the gold you bought for an extended period to get the total resale worth of your gold in future. You can purchase or sell whenever and anyplace according to your will.
- The Taxing Works the Same Way as Physical Gold
For all assessment purposes, digital gold investment is dealt with in the same manner as physical gold. The amount of tax you are responsible for paying relies upon the holding period. If you possess digital gold for three years or less, then the profits from it very well may be named STCG or short-term capital gain. The profits gained here are added to your yearly taxable income. Taxes are charged according to the applicable tax slabs.
Returns from such investments are viewed as long-term capital gains or LTCG on the off chance you choose to sell it after 3 years of owning it. In this instance, you would have to pay a tax of 20% on your benefits, alongside an extra cess of 4%. Besides, a surcharge is charged where applicable. One thing to keep in mind here is that the tax on LTCG is determined with the indexation benefit.
- It is a Safe Investment Option
Many individuals aren’t comfortable with investing in digital gold as it is a comparatively new concept. The hesitance of investing in this instrument is also because of the absence of information on the subject. Like most other instruments for investment in gold, digital gold as a speculation choice is also safe. Each gram of gold aggregated in your account is supported by physical actual gold. This implies that at any given time in future, there will be no proportionate risk of investment for you.
As far as the security of the real gold is concerned, it is kept in a dedicated vault that is insured. Therefore, the risk of loss involved here is nil.
- Has Zero Storage Hassles
The only problem with physical gold is that there are safety issues that accompany it. If you keep it at home, you will consistently be under the stress of it being stolen. To protect it further, you need to store it in a bank locker and bear the costs. Purchasing digital gold gives you freedom from these issues altogether. Most digital gold merchants offer you the option of holding your gold in safe vaults without a charge or at minimal costs.
Gold has always been an investment of choice for many, and with the advent of digital gold, the entire process becomes even more seamless and transparent. Invest safely, all at the click of a button!
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