We all know Gold has been one of the most substantial metals throughout the generations. Our oldest Hindu scriptures demonstrated Gold's significance as an ancient form of currency that humans have used since ancient times.
In this digitalisation wave investing in Gold through digital has become the new way to invest in the most stable market which helps you to gain financial stability.
In a matter of seconds, you can buy pure gold, sell your gold online from the comfort of your home, or request physical gold to be delivered in the form of a bar, coin or any other option available.
How convenient is Digital Gold?
- Most ventures provide the advantage of doorstep delivery of the physical gold at a small cost if redeemed in the physical form.
- Jewellers charge a big amount of making charges which aren’t convenient for many people. DigiGold narrow downs these charges.
- If you want to sell your gold back to the platform, you can do it digitally at any time without any additional charges.
In addition, with digital gold, you can purchase it even with a small amount of ₹ 100, whereas with physical gold, you cannot.
We understand that digitalisation has brought a lot of scepticism, myths and doubts with it, Therefore, in this blog, we are discussing common myths people have regarding Digital Gold.
Let's shatter every myth together to help you make better decisions:
Myth 1. To invest in Gold you need huge money to start
Truth: When it comes to physical gold there is a barrier to entry for buying a minimum amount of gold whether in the form of jewellery, bars or coin.
For many people buying gold is a attain a sense of security in terms of finance therefore they tend to pour all their money at once into gold.
But when it comes to Digital Gold you can begin with a small part of your saving, you can even begin a Systematic Investment Plan(SIP) with DigiGold.
In this way will not be able to disrupt your monthly savings and slowly-slowly you can get a big stake in
Gold may be obtained for a low cost and is a cost-effective investment. The once-unattainable precious metal is now widely available to everybody and everyone.
Myth 2. Digital Gold investments are too dangerous.
Many people think that the prices of gold are as volatile as the stock market & investing in gold can be risky. But the reality is gold prices are not as volatile as the stock market.
Fact: Every investment carries some sort of risk with it, every sector or industry has that risk factor. The same thing is with Gold too, but gold prices are not as volatile as stock investments or equities.
This precious natural resource is always in demand, which makes it an excellent investment. You're protecting yourself from inflation and risky investments with it.
Myth 3. Gold doesn't provide any return on investment.
Truth: The truth is just the opposite. Well-planned Gold investments can pay out handsomely, for real.
For the past 92 years, Gold prices have been steadily rising. Gold has intrinsic value and has been a terrific asset in India, with even stronger returns YoY.
Purchasing gold can deliver a pretty good return on investment, it gives a sense of security to the investor and functions as a hedge against inflation every year.
Myth 4. Gold in digital form is heavily taxed
Reality - When it comes to tax on a digital gold purchase like digital gold GST, the implications or regulations on selling your digital gold in India, we have to consider the fact that it enjoys the same rules and regulations as you would expect for physical gold.
This is because, when you sell your gold, capital gains taxes are the same as physical gold every time depending on how long you held on to it.
5. Long-term returns are the best in equities.
Generally, this is not the case. Assets such as gold tend to outperform others. When comparing the returns over the last five and ten years, you will discover that the bond market has consistently outperformed the equity market.
Truth: This isn't always the case. Gold frequently outshines other assets. If you check the data over the last five and ten years, you'll discover that the returns have regularly outperformed those of equities.
In reality, saving in Gold protects you from the wild swings in the stock market.
Wrapping it Up
We have busted all the major myths regarding digital gold above, hope you got value from it. Share with your family & friends who need to know about it.
At last, Digital gold is a great way to begin your saving journey, which you can start with a minimum investment.