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Wednesday, August 17, 2022

Why is digital gold the ideal way to invest in 2021?

With digital gold, you can start investing as low as Rupee 1, buy and sell according to market dictates, while the trading company or jewellery brand handles the storage.

Updated: August 2, 2021 1:36:59 pm
Digital gold is a smart investment option for the new-age investor. (Photo: Pixabay)

Whether it’s an engagement, wedding or birth of a child, Indians like to celebrate it with gold. The auspicious yellow metal holds immense sentimental value as heritage jewellery pieces are passed down to generations. However, this isn’t it. Gold has also been a fallback during financial emergencies for families. Hence, it’s no surprise that India is second only to China when it comes to buying gold. 

However, physical gold comes with its set of challenges, like buying even a few grams is an expensive affair, keeping gold jewellery at home is risky, etc. This is where digital gold comes in, offering all the benefits minus the accompanying stress.


In terms of returns, gold reportedly gave a return of almost 28% in the year 2020 despite the pandemic, whereas Sensex saw a rise of 16 per cent. FD returns stood at nearly 6 per cent. Seen over a longer term, gold has delivered 11.7 per cent annualised CAGR return in the last 12 years, 9.4 per cent in 10 years, 12.3 per cent in the last 5 years and 16.7 per cent in the previous 3 years.

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What is digital gold? 

Digital gold refers to procuring gold in electronic form such as gold ETFs, gold saving funds, etc. With digital gold, you can start investing as low as Rupee 1, buy and sell according to market dictates, while the trading company or jewellery brand handles the storage.

Digital gold vs Physical gold

Digital gold Physical gold
You can buy with amounts as low as Rupee 1. You need to purchase at least one gram of gold.
Companies offer facilities to hold the accumulated gold in secure vaults at zero or nominal charges. Keeping gold at home is risky, and you have to pay locker charges in case you wish to store your gold in a bank.
With digital gold, you can sell anytime, anywhere with a few clicks, from apps such as Airtel Payments Bank. During resale, you need the purchase bill, and to get the full value, it should ideally be sold to the original seller.
When you pay for digital gold, the entire amount is invested entirely into the gold, and you get full value when sold. In the case of physical gold (Jewellery), you pay for making charges over and above the jewellery’s price.
When it comes to purity, digital gold is the best option as this is certified 24K 99.5% pure gold. When you’re buying from a jeweller, check for the hallmark as physical gold isn’t accompanied by a purity certificate.

Where can you buy digital gold

Airtel Payments Bank offers a convenient and simple way to invest in digital gold with assured purity and safety. Unlike when you sell physical gold, the money transfer happens digitally through NetBanking, facilitated by Airtel Payments Bank. You can monitor the real-time price of gold and choose to buy or sell at your convenience almost instantly. Thus, you can process the transactions quickly and seamlessly with Airtel Payments Bank.


Benefits of investing in digital gold

24K purity

Each unit of digital gold is 99.5% pure. The gold is backed by an authenticity certificate, certifying the gold’s purity. 

Secured in a safe vault  


Your digital gold is held physically in an insured and secured vault without any extra charges. This takes away the hassle of first buying the gold, then keeping it in a safe place before getting it to a secured bank locker, which comes with an annual fee.

Buy and sell at your convenience 

Buying or selling digital gold is a stress-free experience as you can do so via an app on your smartphone. You buy as per the market conditions when the price is right for you, observing it in real-time before investing online. This allows you to make an informed decision that too from anywhere, anytime. 

Low minimum investment

You can start with as low as one rupee and invest frequently as digital gold doesn’t have any minimum investment value requirement. 

Good gifting 


Digital gold ensures that our love affair with India’s favourite precious metal continues unabated. So, whether it’s a graduation gift, for a child’s birthday, wedding present, or a job promotion, go ahead and buy some digital gold, hassle-free, with just a few clicks!


DigiGold as a smart investment option for a new-age investor

Millennials, who account for around 34 per cent of India’s population, are beginning to understand that gold has the potential to act as a hedge against inflation, compared to the unpredictable highs and lows of the stock market. A US-based global investment survey by Legg Mason (2017) showed that 34 per cent of millennials selected gold as one of their top three investment opportunities, compared with 23 per cent of the overall population. 

Therefore, if you want value for money and investment that acts as a hedge against inflation, digital gold is the right option for a discerning investor. Through apps such as Airtel Payments Bank, you can start small and grow your wealth steadily.


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First published on: 30-07-2021 at 08:26:32 pm
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