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Digital Gold

Gold has given an average of more than 10% growth year on year as compared to other investment options like Mutual Fund and Fixed Deposit.
Digital gold is a new form of investment that enables people to buy, sell and store gold online, without having a need for tangibility involved in the process. Instead of dealing with physical gold, investor’s digital gold purchases is backed by physical gold held in secure vaults. This means that the value of digital gold is directly linked to the price of gold, providing the same investment benefits as physical gold.

The process is simple and convenient, and transactions are completed in just a few clicks. In locally Sri Lanka still no any digital gold platform is stablished. But internationally there are lot of famous platforms available such as India, Dubai, Sigapoor , China, USA, UAE, QUTAR and ext.

With purchase of per unit of the digital gold by an investor, the purchase is backed by 99.9% 24K pure gold, delivering surety of purity at every purchase. These investments can start with an amount as minimum local rates, making it an affordable yet stable investment for all, available through a click digitally. For selling the gold, the sale also happens in the digital marketplace at the current price of physical gold. Another important benefit of investing in gold online is that it is digital, hence does not have a making charge markup. Additionally, the hassle and deposits that come with renting a locker in a bank is completely eliminated.

Why Digital Gold and Benefits

There are several benefits of investing in digital gold. Here are some of the top advantages: 

1. Protection from market volatility:

As with any other investment, the value of digital gold can go up or down. Nonetheless, historically, gold have proven to be one of the investments to give the maximum returns. Hence, for long-term digital gold investment is a solid investment. 

2. Quality Assurance:

By investing in digital gold, the purchase is equated to 24k, 99.9% pure gold, delivering quality with every purchase.

3. Affordability:

The biggest challenge while investing in gold is the price for 1 gram gold coin + making charges. However, digital gold gives an individual the opportunity to invest small amounts of money, as low as Rs. 1, making it an affordable investment option for most. 

4. Inflation hedge:

Digital gold can also be a good way to protect the assets from inflation. Since the value of gold typically rises with inflation, investing in digital gold can help growing the investment value.

5. Trading Easy

One of the benefits of digital gold is that it is easy to trade. Buying and selling digital gold is as easy as securities, making it a convenient option for those who want to invest in gold. What makes digital gold a lucrative investment option is that it works on real-time rates, giving the investor a clear picture and market assurance.

6. Accessibility:

Another benefit of digital gold is that it is easily accessible through digital marketplaces. You can access it from anywhere in the world, making it a convenient option for investors to buy it from the comforts and safety of their home, without having to explore physical sellers.

7. Storage Easy:

Digital gold investments are stored in a secure encrypted digital vault, without requiring an additional cost or physical storage. The liability of safety lies at the trader’s end.

8. Easy Redemption and Selling:

One can easily, at any given time, choose to convert their digital gold investments to physical gold or sell the investment at the market price.

Risk of Digital Gold

1. No Regulators: 

We should always invest in digital gold through trusted sources and platforms. This mitigates the concerns of no regulators. If the platform is known among the public and has goodwill, then risk concerns reduce automatically.

2. Tax Applicability: 

Locally government regulated taxation may apply to it

3. Limited Period of Investment:

 Even though there is a limited investment period, we can withdraw the money and reinvest. There is a limitation regarding the period of investment, but there is no limit on how many times we can invest in digital gold.  

4. Charges:

 Digital gold’s primary purpose is to enable investors to invest in gold. Charges are only levied if we opt for gold delivery at the time of withdrawal, whether the delivery charge or making charge. However, if we are looking for actual gold or jewelry, we shouldn’t go for digital gold investment in the first place. Even if we decide to withdraw money and purchase jewelry from outside, the making charges will be incurred. Therefore, we should go for selling gold and withdrawal in the form of money.

5. Selling Limitations:

 Different platforms have different terms for selling gold stored in the vaults. Before investing in digital gold through any platform, we should check all the terms and conditions. This will ensure that we don’t compromise the liquidity in digital gold investments.

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