- by Admin
Digital Gold is becoming highly popular for valid reasons. It is a convenient way to hold gold virtually in a safe bank locker. The best part is that there is no minimum investment that you need to make, and you can start with as low as Re. 1. In addition, a reliable platform, like MyGoldKart, is what you need to invest in digital gold anytime and anywhere.
So, are you interested in making an investment in digital gold? If yes, you’re at the right place.
In this blog, we’re going to discuss key things you must keep in mind before making an investment in digital gold. Let’s get started with it.
5 Things to know before Investing in Digital Gold
- Choose a trustworthy platform
- Payment of GST
- Payment of Storage Charges
- Delivery & Making Charges
- Limitation on Period of Investment
Investment in digital gold seems to be very promising, but you need to be mindful of the platform from/to where you are buying/selling the digital gold.
For instance, when you buy digital gold, the seller keeps the equivalent amount of gold aside in your name. This gold is kept in a secured vault of the seller and it is his/her responsibility to keep it safe.
Usually, a trustee is appointed to ensure that the right quantity and purity of the gold is maintained which was purchased by the investor. To ensure this, you must choose a trustworthy platform, like MyGoldKart. We ensure to keep your digital gold safe so that there are discrepancies in the quality.
When you invest in digital gold, you need to pay 3% GST just like you do while buying physical gold. So, when you estimate the budget of your investment, make sure to include the approximate GST amount in it.
As a buyer, you need to pay storage/holding charges upon buying digital gold. Although there may be no charges for the first two years of the investment.
But if the amount of gold is over 2 grams at the end of 2 years from the date of purchase, then a fee of 0.05 percent per month could be charged. Hence, you must consider this expense before investing.
When you buy digital gold, you have the option to redeem it into physical gold and get it delivered at your doorstep. But you need to pay the delivery charges as they are not included in the purchase value of the gold.
In addition to this, when you are redeeming digital gold into physical gold, such as gold bars or coins, then you need to pay the making charges as well. Hence, keep a note of this, so you don’t get surprised later.
Digital gold investments can be made for a certain period. After this, the investor has to either take the delivery of gold or sell it further. If the delivery is not taken on the due date, some extra charges have to be paid.
To keep your digital gold account active, you can make transactions with a small amount every few months.
So, when you are closer to the due date, make sure to decide in which form you want to redeem the digital gold.
No matter if your digital gold investment is worth a small amount of money or an extensive amount of money, you must keep the above points in mind. This will help you make sound investment decisions and stay informed about the risks and challenges surrounding digital gold investment.
Contact us at MyGoldKart if you have any other queries or need more information on buying digital gold online. We’re here to help you and support you throughout the process of investment.