6 MinsAug 10, 2021
Can you buy gold for Rs. 10? Well, not at your neighbourhood jewellery store. But you can buy Digital Gold online for as little as Rs. 10. Gold as an investment asset class has exhibited good returns over some time. In times of systemic risk and
periods of high inflation, gold has demonstrated its trait of being an effective portfolio diversifier. Amidst the economic uncertainty on account of the COVID-19 pandemic, gold gained a handsome +28.2% in the calendar year 2020 and 23.9%
in 2019.
It is recommended that gold should form 5-10 % of your total investment portfolio, for the medium to long term. With Digital Gold, investing in gold is convenient and easy.
What is Digital Gold
Digital Gold is a new-age way of buying the yellow metal without the need to physically hold the gold. You can buy it conveniently and easily online, sitting in the comfort of your home. The minimum buy or sell value is Rs. 10. You can buy/sell
gold, 24x7, including weekends and public holidays.
What about the purity of gold and safety?
The gold purchased is 24k (99.5% pure) gold and is certified by government-licensed agencies. Hence, you can be assured of its purity.
How does investment in Digital Gold work?
When you buy Digital Gold (which could be as low as Rs. 10) the transaction is routed through mobile or internet banking, facilitating transactions on the go at market rates. The rate
is based on several factors such as international gold prices, customs duty, exchange rate, etc. With gold being priced on a dynamic market once you initiate the transaction, a time limit of 5 minutes is in play for you to complete it. Beyond
which the rate may vary.
Once you confirm the order and verify it basis the OTP, the transaction is executed and the digital gold worth your requested value is instantly credited to your account. The platform provides you with a chance to invest in gold at your convenience,
as it is available 24/7. Besides, since you can start your investment with as little as Rs. 10, you can even invest small amounts as much as you can afford. You don’t need to accumulate a lump sum amount to invest in gold.
Similarly, when you want to sell your Digital Gold, all you need to do is select the quantity (weight) of gold you’d like to sell, confirm the market rate and place the sell order. Once the order is confirmed, the gold will be debited from
your account and the net sale value would be credited within 4 hours.
[Also Read: How you can gain from gold’s glitter]
How is Digital Gold taxed?
Similar to physical gold purchases Digital Gold is subject to capital gains tax. If the holdings are sold in less than 36 months from the date of investment/purchase, Short Term Capital Gain (STCG) tax will apply. The STCG gain will
be added to your income, under “Income from Other Sources” and taxed as per your income-tax slab.
On the other hand, when the gold holdings are for a period of more than 36 months from the date of investment, it will be subject to a Long Term Capital Gain (LTCG) tax @ 20% (with the indexation benefit available), plus cess and surcharge.
Benefits of Digital Gold:
- Convenient and instant purchase/sale
- Purchases in bite-sized quantities. You can start with Rs. 10
- No making charges unlike when you buy jewellery or gold coins/bars
- No hassle of storing physical gold
- The gold is stored in secure vaults
- Assurance on the purity of the gold as it is certified by government-licensed agencies
- Highly liquid – you can easily buy/sell units anytime, anywhere
So wait no more, make the most of this golden investment opportunity and invest in gold instantly at an amount of your convenience!
Axis Bank facilitates payment for Digital Gold. You can buy it through Axis Bank Internet Banking or Axis Mobile, in just two clicks. You can also know more about gold loans online.
Disclaimer: This article has been authored by PersonalFN, a Mumbai based Financial Planning and Mutual Fund research firm. Axis Bank doesn't influence any views of the author in any way. Axis Bank & PersonalFN shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision
