By Gaurav Mathur
‘Investing isn’t dangerous; not being in management is dangerous’ ~ Robert Kiyosaki. That is the funding DNA of the younger millennial and Gen-Z era. Through the years, the notion of investments has moved from being a ‘to-do tax-saving exercise’ to ‘a step in the direction of constructing a secured future’. In keeping with a survey, 84% of millennials have stepped up their wealth administration technique to be ready for future contingencies. Know-how has performed a significant function in driving this behaviour and growing funding in digital gold makes an awesome case research.
Whereas gold has all the time been thought of one of many most secure and most profitable types of funding devices in India, the benefit of entry and small ticket measurement is making digital gold a well-liked funding choice. With steady long-term positive factors, and no higher restrict on purchases, it’s proving to be an awesome diversification funding choice. In a market like India the place roughly 800 tonnes of gold is consumed in a 12 months (WGC 2021), digital gold presents nice alternatives for its traders.
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Having mentioned that, digital gold remains to be a distinct segment trade within the Indian market and comes with its personal set of related myths together with the dangers, taxation, and the way it differs from different gold funding choices like ETFs and gold bonds. Understanding the performance, approachability, and effectivity of digital gold in depth will assist you make an knowledgeable determination:
A extra steady choice for new-age traders: The worldwide market has seen huge volatility within the latest previous with the Covid-19 pandemic, escalating tensions between Russia-Ukraine making funding choices just like the inventory market and cryptocurrency unstable. In actual fact, the main cryptocurrency has witnessed excessive common volatility (77.08% ) within the final 5 years. Nevertheless, throughout the identical interval, the gold market was comparatively steady with 13.70% common volatility. Undoubtedly, gold turns into a extra steady choice to put money into and part of your portfolio for long-term positive factors. Coupling it with the advantages like the choice of investing smaller quantities, a assure of 24K gold purity, straightforward sale, and buy makes it a profitable choice for diversification.
Bodily tangibility at your will: Being backed by precise bodily gold, digital gold gives the investor a singular alternative to transform it right into a tangible kind as per one’s ease and comfort. Bodily tangibility ensures your funding has a strong backing that may be conveniently carried anyplace together with you. It gives straightforward possession the place anybody can have gold delivered to their doorstep, at any time in a tamper-proof, insured package deal. An investor can procure bodily gold equal to the worth of digital gold within the type of 24K gold cash, bars. Funding platforms even have jewelry companions the place you possibly can change your digital gold for jewelry.
The worth of bodily with the comfort of digital: Whereas gold bonds have an extended funding interval, digital gold and ETFs are extra liquid funding choices. Digital gold additionally retains the age-long use case for use as collateral for loans. Gold storage can be a bother for almost all as accumulating giant quantities of treasured metallic in a single place will increase the danger of theft. With digital gold, your funding is safely saved in a guarded vault regulated by famend trustees.
(Gaurav Mathur is the Founder and MD SafeGold. Views expressed are the writer’s personal. Please seek the advice of your monetary advisor earlier than investing.)