A Step-by-Step Guide to Buying Digital Gold in India

Buying digital gold in India can be a convenient and secure way to invest in gold, but it can also be overwhelming with so many options available. You can buy digital gold from various platforms, including banks, fintech companies, and online marketplaces.

To start, you'll need to choose a reputable platform that suits your needs, such as DBS Bank, which offers a digital gold investment product in partnership with mPact. Some platforms also offer features like 24/7 customer support and live gold prices.

Before making a purchase, you'll need to create an account with the chosen platform, which typically involves providing basic personal and financial information. This information will be used to verify your identity and enable you to make transactions securely.

Buying digital gold in India can be a great investment option, and for good reason. One of the biggest advantages of investing in digital gold is the ease of accessibility - you can buy and sell gold online, without having to visit a jeweller.

With digital gold, you can invest as little as Rs. 1, making it accessible to a wider spectrum of investors. This is because digital gold allows investors to buy and sell gold in smaller amounts, making it more affordable.

Digital gold is also insured and stored safely in vaults by sellers, on behalf of customers, so you don't have to worry about your gold's safekeeping. This provides a sense of security and peace of mind.

Another benefit of digital gold is that you can track and access the progress of your investment online, making it easy to monitor your investment.

You can also benefit from the real-time gold rates while purchasing or selling digital gold. This means you can make informed decisions about your investment.

Here are some key benefits of investing in digital gold:

Gold's value tends to increase each year, making it a safe haven during economic uncertainty and market volatility. In fact, the Compound yearly Growth Rate (CAGR) of gold prices from 2014 to 2024 is approximately 10.28%, highlighting its position as a dependable asset.

You can buy digital gold in India through various platforms, including Google Pay, Paytm, and PhonePe, which allow you to quickly purchase digital gold without needing to install an app or create a new account.

These platforms have made it convenient to invest in digital gold, and you can even use e-wallets like Amazon Pay, Freecharge, and MobiKwik to buy digital gold.

Google Pay launched its digital gold feature in April last year, while Paytm and PhonePe had introduced their digital gold offerings in 2017 and 2018, respectively.

You can also buy digital gold through conventional gold retailers like Tanishq and financial service providers like Motilal Oswal, who offer digital gold through their apps or websites.

Many of these platforms, including Google Pay and Paytm, sell digital gold through partnerships with MMTC-PAMP, a joint venture between Switzerland-based bullion brand PAMP SA and MMTC Ltd.

Investing in digital gold can be a great way to diversify your portfolio and add stability, but it's essential to consider a few things before making a purchase.

The minimum investment amount varies across platforms, ranging from Rs 1 to Rs 100, depending on the app you choose.

Before investing, it's a good idea to check the locker charges, as some apps deduct this from the principal amount.

You can invest up to Rs 2 lakhs in digital gold, but be aware that the GST of 3% is deducted from the principal amount.

It's also essential to consider the maximum holding period, which is five years. After that, you must either sell it or convert it into physical gold.

Here are some key things to keep in mind when investing in digital gold:

The taxes on capital gains when selling digital gold can be significant, so factor this into your investment decision.

You can buy digital gold on various platforms in India, including Google Pay, Paytm, and PhonePe, which allow you to quickly buy digital gold without needing to install an app or create a new account.

Google Pay, Paytm, and PhonePe are among the e-wallets selling digital gold, along with Amazon Pay, Freecharge, MobiKwik, HDFC Securities, and others.

You can also buy digital gold through apps like Jar, which enables you to save money in the form of digital gold, or through conventional gold retailers like Tanishq, or financial service providers like Motilal Oswal, who deal in digital gold through their apps or websites.

Groww is another platform that allows you to invest in digital gold, partnering with Augmont Gold for all transactions. MMTC-PAMP Digital Gold is also an option, which allows you to invest in 24K 99.9% pure gold and store it in a highly secured vault.

If you're looking to buy digital gold in India, you have several options. One of the most convenient platforms is Google Pay, which allows you to quickly buy digital gold without needing to install an app or create a new account.

Google Pay is not the only option, however. Other major digital payment platforms like Paytm and PhonePe also offer digital gold purchases. These platforms have made it easy to invest in gold with just a few clicks on your mobile phone.

If you're looking for a more traditional experience, you can also consider buying digital gold through e-wallets like HDFC Securities, Amazon Pay, Freecharge, and MobiKwik. These platforms offer a range of features, including partnerships with MMTC-PAMP and other reputable gold providers.

Some popular platforms for buying digital gold include:

These platforms have made it easy to buy, sell, and store digital gold, with features like automated invoicing and bank-grade secure lockers.

Digital gold is easy to liquidate, and it's as simple as sending money to someone via UPI. This is a significant advantage over physical gold, where selling can incur losses due to wastage, making charges, and more.

You can liquidate digital gold easily because it's stored safely in vaults by sellers on behalf of customers, making it insured and hassle-free.

Digital gold is also 24 karat or 100% pure, unlike physical gold which is 22 karat or 91.6% pure.

If you want to redeem or convert your digital gold into physical gold, you must pay delivery charges, and the gold will be delivered to your doorstep.

With digital gold, you can buy, sell, and redeem your investment anytime, making it a convenient option for those who want to invest in gold.

The value of digital gold is reflected in your account, and you can track and access the progress of your investment online, giving you complete control over your gold investment.

You can buy and sell digital gold in India with the same tax rates as physical gold. The tax rates for both short- and long-term capital gains are 3% (plus cess).

The holding time for digital gold is shorter than physical gold, making it eligible for long-term capital gains after just three years. This is a key difference to consider when deciding between buying digital and physical gold.

In India, taxes on both physical and digital gold are the same, with a 3% tax rate (plus cess) applying to selling gold.

Both short- and long-term capital gains tax rates are the same for gold, regardless of whether it's physical or digital.

The holding time for digital gold is only three years, making it eligible for long-term capital gains, which is a shorter period than the five years needed for physical gold.

This difference in holding time can impact your tax liability, so it's essential to understand the rules and plan accordingly.

You can redeem your digital gold savings as cash into your bank account. Digital Gold can be bought in multiple transactions of any denomination and accumulated over a long period of time.

For every online purchase of digital gold, the seller keeps an equivalent weight of physical gold in a secure vault. This means your investment is always backed by physical gold.

You can invest as little as Rs. 1 in digital gold and then build up your savings over time.

Buying digital gold in India can be a safe and secure experience.

You can buy digital gold from trusted websites and apps, such as Blume or SafeGold, which are regulated by the RBI.

Before making a purchase, it's essential to check the website's or app's authenticity and reputation.

Digital gold is stored in a dematerialized form, which means it's not physically stored, reducing the risk of theft or loss.

You can purchase digital gold in various denominations, including 1 gram, 5 grams, or 10 grams.

To ensure safe transactions, you can use payment methods like UPI, net banking, or credit/debit cards.

The digital gold is backed by physical gold and can be easily converted into physical gold or cash.

If you're looking for a hassle-free way to buy digital gold in India, consider the following popular options.

You can purchase digital gold through the United India Insurance Company's online platform, which allows you to buy and store gold in digital form.

The Karur Vysya Bank offers a digital gold purchase facility through its mobile app and website, making it easy to buy and store gold online.

Digital gold can also be purchased through the MMTC-PAMP online platform, which offers a secure and convenient way to buy and store gold.

The MMTC-PAMP platform allows you to buy and store gold in denominations as small as 0.001 grams, making it an ideal option for those who want to invest in small quantities.

The digital gold offered by these platforms is backed by physical gold and can be easily converted into cash or physical gold when needed.

You can buy digital gold on Paytm, where you can purchase up to Rs 2,00,000 at once.

Paytm often has limited-time offers and deals while buying digital gold, so keep an eye out for those.

To make buying digital gold even more convenient, Paytm allows you to set up a systematic investment plan, which automatically adds digital gold to your portfolio.

In India, you can buy digital gold for as little as Re 1, making it a more accessible investment option.

You can invest in digital gold through multiple websites and applications or with the help of brokers, making it easy to get started.

The digital gold is stored in insured vaults, providing a safe and secure way to invest in gold.

There is a one-time cost for storage and safety of digital gold, which is included in the price of gold at the time of buying and may vary from that of the gold price on MCX or in physical markets.

India is a vast and diverse country, and the prices can vary greatly depending on the region and city. The 30-day price for a budget traveler in India can range from ₹30,000 to ₹60,000 (approximately $400-$800 USD).

Accommodation costs can be as low as ₹500-₹1,000 (approximately $7-$14 USD) per night for a hostel or guesthouse, while food can be had for ₹100-₹300 (approximately $1.50-$4.50 USD) per meal.

The cost of transportation in India can vary greatly depending on the mode of transport and the distance traveled. A one-way ticket on an Indian Railways train can cost anywhere from ₹100 to ₹5,000 (approximately $1.50-$75 USD).

India has a rich cultural heritage, and visiting its famous monuments and historical sites can be a thrilling experience. The cost of visiting the Taj Mahal, for example, is ₹50 (approximately $0.75 USD) for Indians and ₹1,100 (approximately $16 USD) for foreigners.

The best time to visit India is from October to March, when the weather is cooler and more pleasant. During this time, you can enjoy the festivals and fairs that take place throughout the country.

Digital gold is a game-changer for investors in India, allowing them to buy and store gold easily through multiple websites and applications, or with the help of brokers.

You can invest in digital gold for as little as Re 1, making it accessible to a wider range of people.

Digital gold is stored in insured vaults, providing a safe and secure way to store your investment.

The physical equivalent of the gold bought digitally is stored in a digital locker, maintained and guarded by the seller on behalf of the customer.

There's a one-time cost for storage and safety of digital gold, which is included in the price of gold at the time of buying and may vary from the gold price on MCX or in physical markets.