Diwali gift: Go for digital gold; here’s why

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Gold is a perennial favourite of investors. Nowadays there are several options of investing in gold beyond the traditional physical jewellery. These are digital gold, gold ETF (exchange traded funds) and SGB (sovereign gold bonds). These are convenient options since they do not entail problems of holding of physical gold. Banks and online financial services platforms are offering digital gold to investors.

Festive demand

Dhentaras and Diwali are round the corner and pushing up sentiment of buying of gold. Retailers confirmed that gold buying has recorded a jump after the second wave of the pandemic. More and more people opt for alternative ways to buy in gold in this festive season.

“We are continuing to see a positive momentum in consumer mood this festive season both in online and offline mediums,” said Ajoy Chawla, CEO, jewellery division, Titan.

Buying digital gold is just on the fingertips. One can buy gold in digital format within a couple of seconds.

Any individual can buy digital gold as per his/her choice from platforms like Paytm, PhonePe, MMTC PAMP, Axis Bank and several other platforms.

“The demand for gold is again witnessing a spike, not only in retail outlets but also on wealth-tech and fintech platforms offering digital gold,” said Subhra Chandra from PC Chandra Jewellers.

“Overall festive mood and purchases are all converging to create a surge in both gold and diamond jewellery. We think this could continue right through to Diwali and hopefully beyond into the wedding season,” Chandra added.

Advantage of digital gold

Digital gold can come in handy for those celebrating remotely to exchange gifts, said industry veterans.

Gifting gold digitally seems like a modern, thoughtful, and prudent option right now.

The holder of digital gold can also sell their holdings at market rates and the purity would be ensured, unlike physical jewellery, added Chandra.

One can buy or sale any amount of digital gold instantly without any hassle.