Winning Bizness Desk
Mumbai. Amid a recent drop in gold prices, digital gold has also witnessed significant fluctuations. On November 6, 2024, the price of one gram of digital gold peaked at Rs 8,136.97 and dropped to a low of Rs 7,911.54. As of today, according to MMTC-PAMP, the price of one gram of digital gold is Rs 7,860.29 for buyers, while sellers would receive Rs 7,354.08 per gram.
What is Digital Gold?
Digital gold is essentially a gold-backed digital asset. It allows investors to buy and hold gold in digital form without the need for physical storage. The process is entirely online: for instance, if you purchase one gram of digital gold today, the equivalent value of gold is credited to your digital wallet. You can sell your digital gold whenever its price rises to book a profit. Prominent providers of digital gold in India include SafeGold, MMTC-PAMP (a joint venture between MMTC, a government company, and Switzerland-based MKS PAMP), and Augmont Gold.
Start Investing with Just Rs 1
Unlike traditional jewelry purchases where even a small item would cost hundreds of rupees, digital gold enables investments starting as low as Rs 1. Moreover, the gold you buy digitally is guaranteed to be 24-carat pure gold. For those interested in investing, platforms like Google Pay, PhonePe, and Paytm offer seamless access to digital gold. Other options include Amazon Pay, Freecharge, MobiKwik, and HDFC Securities, making it convenient for users to purchase gold through their preferred e-wallets.
Evolution of Digital Gold Platforms
Google Pay entered the digital gold market in April 2023, adding to the competition. Meanwhile, Paytm and PhonePe introduced digital gold transactions in 2017, followed by MobiKwik in 2018. These platforms have made it easier for users to diversify their investments, even with minimal amounts.
Why Consider Digital Gold?
Digital gold offers several advantages:
- Affordability: Invest with small amounts, starting at Rs 1.
- Convenience: Purchase, hold, and sell gold entirely online without the hassle of physical storage.
- Purity Guarantee: Assured 24-carat gold backed by reputed providers like MMTC-PAMP.
- Liquidity: Sell your holdings anytime to take advantage of price increases.
As gold prices fluctuate, digital gold provides an accessible and flexible way to invest in the precious metal. Whether for portfolio diversification or as a hedge against inflation, it offers a modern solution to traditional gold investments.
