Startups Offering Digital Gold in India

4 July 2019 | 1311 Views | By Mint2Save

In countries like India, there is always a high demand for gold. Be it occasions such as festivals and functions, or just a desire to have the shiny yellow metal – Indians love to purchase gold. However, physical gold has its own disadvantages because you have to keep it in a safe place and also spend on its maintenance. In some cases, there is also the risk of melting, which can lead to a major monetary loss. Alternative ways to overcome all of these challenges are to invest in digital gold or gold bonds because these are hassle-free methods to own the yellow metal.

The digital gold market has grown rapidly in recent years. Since its launch in the year 2012-13, more than 80 million digital gold accounts have been opened in India. Nowadays, there are several startups that offer you the chance to own digital gold. A few examples of such companies are Paytm, SafeGold and Augmont. These companies let you open an online account which can be used to store digital gold. Typically, opening an account is easy and just takes a few minutes. Once your account has been verified, you can start purchasing.

Such startups have made it easy for anyone to buy gold. You can start by purchasing gold for as low as Rs. 1. The digital gold that you have purchased is stored in safe and secure lockers. You could also opt for the gold to be delivered at your doorstep if you want. However, it must be noted that delivery charges will be applicable. Another advantage is that such gold is also insured. In case of a loss, you will be compensated. But you must read the terms and conditions of the company. In many cases, companies include clauses that are unfavourable for you.

Many startups have also launched contests and cashback offers that can help you in getting more gold than what you have paid for. Such offers can prove to be a great way to earn more. Further, several startups also provide you with a gold certificate. Such certificates allow you to resell your gold in case you wish to do so. These certificates also imply that your gold is digitally verified. Many startups also allow you to earn reward points on purchasing digital gold. Once you have crossed a threshold, you can also convert your points into more gold.

However, there are also a couple of disadvantages when it comes to purchasing digital gold. Firstly, you are missing out on the feeling of holding your physical gold. For many people, this is a wonderful feeling that they do not want to miss out on. Secondly, many startups compel you to convert your digital gold into physical gold at least once a year. This creates a situation where you have to make the transaction in order to continue your account. If you do not do so, your digital gold account may be closed. Thus, you need to take into account all factors before investing in digital gold offered by a startup.