Investments in Digital Gold

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Indians are very fond of Gold and thus you will see that the gold ornaments are gifted to near ones in every big occasions like Marriage, Son's birth etc. Mainly its bride who gets the Gold ornaments from the groom's family as well from her own family. Gold ornaments also plays a lot of role in Dowry ecosystem in India where the groom's family demand certain gram of gold in the form of ornaments.

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PC: Pixabay.com

And since the dowry as well as the culture is prevalent in India, Indians buy a lot of Gold. I have a cousin's marriage coming up in April last week and the family have to buy ornaments for the bride worth 8 Lakhs since they did not had any Gold ornaments at home. Even if they would have had, they had to shell out a good amount of money to get new ornaments or refurbished the old ones.

I too have a lot of Gold ornaments in my home, mostly locked up in a locker, but still in my opinion its not the best form of investments. First of all the gold ornaments you get is of 18 or 22 Caret along with that you have to pay large portion of making charges. When you want to sell your Gold its very unlikely that you get the market price back.

So the younger Indians what they have started is to buy Gold bonds in the form of SIP. Though this is purely in the form of investment but does not help in getting converted to actual gold when needed. Lets say a person wanted to invest Rs 1000 per month for his daughter's marriage. He started buying Gold Bonds but when the actual marriage comes he have to sell his bonds and get the money and then using that money he/she buys gold ornaments.

Other option is to buy coins or bars of purest form and when needed you can use that gold to make the ornaments of your choice. But again the problem I see in this approach is that you have to protect your coins by either keeping it in safe boxes or locker.

What I usually do is to buy Digital gold in its purest form i.e. 24K. I have an option to invest whatever amount I like be it Rs. 1 or Rs. 10000. The biggest advantage I can see out here is that whenever required you can ask the merchant to convert your digital gold into physical gold which you can use to make ornaments. Though mainly I am not really investing for making ornaments but for investments and thus I feel this is the best mode of Gold Investments.

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PC: Groww

Like in Dhan Teras at the time of Diwali we have a culture to buy utensils or gold or silver. So my parents bought silver spoon whereas I bought Digital gold and just innovative way of doing tradition I guess.

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