Gold has always been a cherished asset in India, symbolizing wealth and stability. In the past, buying physical gold was the primary way to invest in this precious metal. However, with advancements in technology and increasing digitalization, a new trend has emerged—digital gold investment. Digital gold offers investors the flexibility to purchase, sell, and accumulate gold online without needing physical storage.
In this comprehensive guide, we’ll delve into the growing popularity of digital gold investment apps in India, explore the benefits and risks, and provide insights on how to make the most of these platforms.
What Is Digital Gold Investment?
Digital gold investment is a modern approach to investing in gold without owning it physically. When you invest in digital gold, you are purchasing gold that is stored securely in vaults on your behalf. The value of your investment is tied directly to the current market price of gold. This method allows investors to buy gold in small quantities, making it accessible for a wide range of individuals.
How Digital Gold Works
The process is simple:
Purchase: You can buy gold online through apps or platforms that offer digital gold.
Storage: The gold is stored in secured vaults by the provider, so you don't need to worry about safekeeping.
Sell or Redeem: You can sell your digital gold anytime for cash, or redeem it for physical gold in the form of coins or bars.
Unlike physical gold, digital gold doesn’t require you to manage storage or worry about theft. With just a few clicks, you can invest, track, and manage your holdings online.
Popular digital gold investment apps in India
There are many digital gold investment apps available in India, including:
1. Gullak
Gullak is one of the most popular digital gold investment apps in India. It allows users to invest in 24K 999 purity gold in small denominations, starting from Rs. 10. Gullak also offers a unique feature called Gold+, which allows users to lease their digital gold and earn an extra 5% gold returns every year. This means that users can potentially earn up to 16% returns on their gold investments on Gullak.
Here are some of the key features of Gullak:
Easy to use: Gullak has a user-friendly interface that makes it easy for anyone to invest in gold, even if they are new to investing.
Flexible investment options: Gullak offers a variety of investment options, including daily savings, save on every spend, and top-up. This allows users to invest in gold in a way that suits their needs and budget.
Secure: Gullak is a secure platform that uses the latest security technologies to protect users' investments.
Affordable: Gullak does not charge any commission or fees on gold investments. This means that users can get the full value of their investments.
How to invest in digital gold on Gullak:
Download the Gullak app from the Google Play Store or Apple App Store.
Create an account and verify your PAN card.
Select the investment option that suits you best.
Add money to your Gullak wallet using UPI, Paytm, or other payment methods.
Start investing in gold!
Benefits of investing in digital gold on Gullak:
Liquidity: Digital gold on Gullak is highly liquid. Users can sell their gold anytime they want, at the current market price.
Convenience: Digital gold is convenient to buy, sell, and store. Users do not have to worry about the hassle of buying and storing physical gold.
Affordability: Digital gold can be purchased in small denominations, starting from Rs. 10. This makes it an affordable investment option for everyone.
Transparency: Gullak is a transparent platform that provides users with real-time information about the price of gold and their investment value.
Overall, Gullak is a good option for those looking to invest in digital gold in India. It offers a variety of features and benefits that make it easy and affordable to invest in gold.
2. Jar
Jar is one of the leading digital gold investment apps in India. It allows users to invest in 24K digital gold from as little as ₹10. Jar also offers a unique feature called "round-up," which automatically invests the spare change from daily transactions into digital gold. This makes it a great way to save money and invest in gold without even having to think about it.
Here are some of the benefits of using Jar to invest in digital gold:
Convenience: Jar is a very convenient way to invest in gold. You can create an account and start investing in minutes, all from the comfort of your own home.
Affordability: Jar allows you to invest in gold from as little as ₹10. This makes it a great option for people of all income levels.
Flexibility: Jar offers a variety of investment options to choose from. You can invest daily, weekly, or monthly. You can also set a recurring investment amount or invest manually whenever you want.
Security: Jar is a trusted and secure platform for investing in gold. Your gold is stored in insured vaults and you can withdraw it anytime you want.
Jar is a great option for anyone looking to invest in digital gold in India. It is convenient, affordable, flexible, and secure. If you are looking for a way to save money and invest in gold, Jar is definitely worth considering.
3. MMTC-PAMP
MMTC-PAMP is a joint venture between Switzerland-based bullion brand PAMP SA and MMTC Ltd, a Government of India Undertaking. It is one of the most trusted and reliable digital gold investment apps in India.
Features of MMTC-PAMP Digital Gold Investment App
Flexibility: You can buy and sell gold in fractions, starting from INR 1. You can also redeem your gold in the form of gold coins or minted products.
Easy buyback: You can sell back your gold holdings to MMTC-PAMP at any time during the open sale back window. The money will be credited to your bank account.
Purity: MMTC-PAMP sells 24K, 99.99% pure gold.
Highest accreditation: MMTC-PAMP is accredited by the London Bullion Market Association (LBMA).
100% secure: MMTC-PAMP stores your gold in insured vaults.
Doorstep delivery: You can get your gold delivered to your doorstep.
How to use MMTC-PAMP Digital Gold Investment App
To use the MMTC-PAMP digital gold investment app, you need to create an account and link your bank account. Once your account is verified, you can start buying and selling gold.
To buy gold, simply enter the amount of gold you want to buy and the payment method. The gold will be credited to your account immediately.
To sell gold, simply enter the amount of gold you want to sell and the bank account where you want the money to be credited. The money will be credited to your bank account within 3-5 business days.
To redeem gold:
Select the quantity and denomination of the gold you wish to redeem from the available options of coins on the Partner Platform.
Request for all or part of your gold holding between 1 gram and multiples thereof.
Confirm the transaction by paying the additional making and delivery charges.
Your gold product will be delivered at your notified address by a logistics provider.
Why invest in gold using MMTC-PAMP Digital Gold Investment App?
There are a number of benefits to investing in gold using the MMTC-PAMP digital gold investment app:
Convenience: You can buy, sell, and redeem gold from the comfort of your home.
Affordability: You can invest in gold in small denominations, starting from INR 1.
Security: Your gold is stored in insured vaults.
Transparency: You can track the live price of gold and your investment holdings in real time.
Reliability: MMTC-PAMP is a trusted and reliable brand.
Overall, the MMTC-PAMP digital gold investment app is a convenient, affordable, secure, and transparent way to invest in gold.
4. Google Pay
Google Pay is a popular mobile wallet app that has partnered with MMTC-PAMP to sell digital gold. This means that you can buy, sell, and exchange digital gold directly from your Google Pay app.
Google Pay offers a number of advantages, including:
A simple and convenient way to buy and sell digital gold
The ability to use your existing Google Pay balance to buy digital gold
A secure and trusted platform
5. Paytm
Paytm is another popular mobile wallet app that offers digital gold investment. It has partnered with MMTC-PAMP to sell digital gold on its platform.
Paytm offers a number of features, including:
The ability to buy, sell, gift, or get delivery of your digital gold anytime you want
A secure and insured storage for your gold
Live gold price tracking
A user-friendly app and website
6. PhonePe
PhonePe is a popular mobile payment app that has partnered with MMTC-PAMP and SafeGold to offer digital gold investment. This means that you can buy, sell, and convert your digital gold within minutes through your PhonePe app.
PhonePe offers a number of advantages, including:
A convenient and easy-to-use way to buy and sell digital gold
The ability to use your existing PhonePe balance to buy digital gold
A secure and trusted platform
7. 5Paisa
5Paisa is a popular stock market trading app that also offers digital gold investment. It has partnered with Augmont Gold to provide digital gold to its customers.
5Paisa offers a number of features, including:
The ability to buy, sell, and redeem digital gold
A secure and insured storage for your gold
Live gold price tracking
A user-friendly app and website
8. Groww
Groww is a popular direct mutual fund and stock investing app that also offers digital gold investment. It has partnered with Augmont Gold to provide digital gold to its customers.
Groww offers a number of features, including:
The ability to buy, sell, and redeem digital gold
A secure and insured storage for your gold
Live gold price tracking
A user-friendly app and website
9. Amazon Pay
Amazon Pay is a popular payment app that has partnered with SafeGold to sell digital gold. This means that you can buy, sell, and gift digital gold through your Amazon Pay app.
Amazon Pay offers a number of advantages, including:
A convenient and easy-to-use way to buy and sell digital gold
The ability to use your existing Amazon Pay balance to buy digital gold
A secure and trusted platform
10. Airtel Payment Bank
Airtel Payment Bank is a mobile banking app that also offers digital gold investment. It has partnered with SafeGold to sell digital gold on its platform.
Airtel Payment Bank offers a number of advantages, including:
The ability to buy, sell, and deliver digital gold
A secure and insured storage for your gold
Live gold price tracking
A user-friendly app and website
11. DigiGold
DigiGold is a popular digital gold investment app that is known for its security and reliability. It sells gold and silver of 24K and 99.9% purity.
DigiGold offers a number of features, including:
The ability to buy, sell, and convert digital gold
A secure and insured storage for your gold
Live gold price tracking
A user-friendly app and website
Features to Look for in a Digital Gold Investment App
When choosing a digital gold investment app, there are several key features to consider:
User-Friendly Interface
An intuitive, user-friendly interface is essential for seamless transactions. The app should allow easy navigation between buying, selling, and managing your gold assets.
Low Transaction Fees
Some apps charge fees for transactions or storage. Make sure to choose an app with low or no fees to maximize your investment returns.
Real-Time Price Tracking
The app should offer real-time gold prices so you can make informed decisions on when to buy or sell. Transparency in pricing is crucial for investors.
Purity and Certification
Always choose apps that provide 24K gold (99.5% to 99.9% purity). Ensure that the gold you’re buying is certified by trusted authorities like MMTC-PAMP or SafeGold.
Secure Vault Storage
The safety of your investment is paramount. Choose an app that offers insured and secured vaults to store your digital gold, minimizing risks like theft or damage.
Liquidity and Redemption Options
Look for apps that offer flexibility in selling your gold or redeeming it for physical gold or cash. The ability to liquidate your assets quickly is a key factor in choosing the right app.
Gold Insurance and Safety
Some platforms offer insurance coverage for your gold investment, providing additional security and peace of mind. It’s worth checking if your chosen app includes this feature.
When choosing a digital gold investment app, it is important to consider factors such as fees, investment options, and security. It is also important to read the terms and conditions carefully before investing.
How to Invest in Digital Gold via Apps
Investing in digital gold through an app is simple and can be done in just a few steps:
Step-by-Step Guide
Download the App: Start by downloading a digital gold investment app from the App Store or Google Play.
Register and Complete KYC: Set up an account by providing your personal details and completing the KYC (Know Your Customer) process. This ensures the legitimacy of your investment.
Link Your Bank Account: Connect your bank account or payment method for easy transactions.
Select the Amount to Invest: Choose the amount of gold you want to buy based on the current market price. Most apps allow you to invest in small quantities.
Purchase Gold: Confirm your purchase, and the gold will be credited to your digital vault.
Track Your Investment: Use the app to monitor gold prices and the value of your holdings. You can choose to buy more or sell when needed.
Benefits of Investing in Digital Gold
Digital gold offers several advantages over traditional forms of gold investment:
No Storage Hassles
Since the gold is stored digitally in secured vaults, you don’t need to worry about storing physical gold at home or in a bank locker.
High Liquidity
Digital gold can be sold at any time, making it a highly liquid asset. This is ideal for investors looking for quick access to funds.
Small Investment Amounts
Unlike physical gold, digital gold allows you to invest in fractions of a gram. This makes it accessible to a wider range of investors, regardless of their financial situation.
Transparent Pricing
With real-time price updates, digital gold apps offer complete transparency in pricing. You know exactly how much gold you are buying and at what rate.
Safe and Secure
Most digital gold platforms partner with trusted gold vaults and ensure that your investment is insured, offering peace of mind.
Risks of Investing in Digital Gold
Price Volatility
Digital gold prices fluctuate with market conditions, similar to physical gold. Investors must be prepared for short-term price swings influenced by global events and economic factors.
Storage Fees
Some apps charge storage fees after a certain period, reducing overall returns for long-term investors. It's important to check fee structures before investing.
Liquidity Concerns
While selling digital gold is easy, converting it into physical gold may take time and involve extra costs like delivery charges, which can affect liquidity.
Not a Substitute for Physical Gold
Digital gold offers convenience but shouldn’t replace physical gold entirely in a portfolio. Physical gold serves unique purposes, including as a tangible asset for emergencies or sentimental value. Diversifying investments with both digital and physical gold is wiser.
Tax Implications of Digital Gold Investment in India
Capital Gains Tax
Digital gold is subject to capital gains tax.
Short-Term Gains (STCG): If sold within three years, profits are taxed at your income tax slab rate.
Long-Term Gains (LTCG): Held for over three years, profits are taxed at 20% with indexation benefits, reducing taxable gains due to inflation adjustment.
GST on Digital Gold
A 3% GST applies on purchasing digital gold, which increases the overall cost. This GST is non-refundable, making it an important factor when calculating returns.
Taxation on Physical Gold Conversion
When converting digital gold to physical gold, 3% GST applies again, adding to the cost. Additionally, the conversion is treated as a sale, triggering capital gains tax depending on the holding period.
Digital Gold vs. Physical Gold vs. Gold ETFs
Digital Gold vs. Physical Gold
Storage: Digital gold is stored securely in vaults; physical gold requires safe storage at home or in lockers.
Investment Amounts: Digital gold allows micro-investments (as low as ₹1); physical gold often requires a larger upfront investment.
Ease of Selling: Digital gold can be sold instantly via apps, while physical gold sales involve more steps and possible deductions.
Purity Concerns: Digital gold ensures 24K purity, while physical gold might vary in quality.
Digital Gold vs. Gold ETFs
Accessibility: Digital gold is more accessible for small investors; ETFs require a Demat and trading account.
Liquidity: Digital gold offers 24/7 liquidity, while ETFs are only tradable during market hours.
Storage Costs: Digital gold may incur storage fees; gold ETFs charge low fund management fees (around 0.5%-1%).
Fees and Taxes: Both digital gold and ETFs are subject to transaction fees and similar capital gains tax structures.
In summary, digital gold suits small investors seeking simplicity, while ETFs are better for those with stock market experience looking for structured investments.
Digital gold investment apps offer a modern, convenient, and secure way to invest in gold. With options to buy and sell gold in small quantities, track market prices in real-time, and access flexible redemption choices, these apps have democratized gold investment for everyone.
By choosing the right app and understanding the associated risks, you can diversify your investment portfolio and enjoy the many benefits of gold ownership in a digital form.
FAQs on Digital Gold Investment Apps
Q: What is a digital gold investment app and how does it work?
A: A digital gold investment app is a mobile app that allows you to buy and sell gold online. You can invest in gold for as little as Rs. 1, and the gold is stored in a secure vault on your behalf. You can also redeem your digital gold for physical gold, if you wish.
Q: What are the benefits of using a digital gold investment app?
A: Some of the benefits of using a digital gold investment app include convenience, affordability, security, transparency, and flexibility. You can buy and sell gold from your smartphone, invest in gold for as little as Rs. 1, and track the price of gold in real-time.
Q: How do I use a digital gold investment app?
A: To use a digital gold investment app, you will need to create an account and provide your KYC details. Once your account is verified, you can start investing in gold. Simply select the amount of gold you want to buy and pay for it using your preferred payment method. The gold will be credited to your account immediately.
Q: What are the differences between digital gold and physical gold?
A: Digital gold and physical gold have some key differences. Digital gold is a convenient and affordable way to invest in gold without the need to worry about storage or security. It can be bought and sold online, and its value is tracked in real-time. On the other hand, physical gold is a tangible asset that you can physically hold and store. It requires storage and security measures, and its value may fluctuate based on factors such as demand and supply.
Q: Is digital gold investment a good or bad option?
A: Digital gold investment can be a good option for those looking to invest in gold without the hassle of buying and storing physical gold. It offers convenience, affordability, security, transparency, and flexibility. However, as with any investment, it is important to do thorough research, understand the risks involved, and make informed decisions based on your financial goals and risk tolerance.