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Digital Gold: How it works, where to buy, and its benefits

5 Mins read

At GoldLane, we are all about Digital Gold as a really effective way to buy for people who are unable or simply too busy to visit a jewellery store and take on all the hassle of buying and verifying Gold. So, we decided to answer them. In this article you will get all your questions about digital gold answered.

With how accessible the internet is today, would you believe me if I told you the number of people who go online every day is still increasing?

According to the World Bank Globex Findex survey, Smartphone user numbers grew to over 500mn in 2019 – an increase of 15% over 2018 – and this is expected to exceed 800mn by 2022. Smartphone penetration and increasing financial inclusion will give Indian investors the ability to invest in Digital Gold with the swipe of a finger, using mobile apps.

World Gold Council Report

Click the links below to jump to each question, or keep reading:

How does Digital Gold work?

Where to buy?

What do you need to invest?

Features of Digital Gold app

What are the Benefits?

How can you use Digital Gold?

Digital gold vs Physical gold: Which is it?

How does Digital Gold work?

You pay for Digital Gold through an gold investment platform and your purchases are backed with gold assets stored securely in vaults entitled to you. As simple as it goes, buying Digital Gold comes with the advantage of being able to purchase assets for as low of an amount as you want.

You read that right! You do not need to save up to a certain amount to be able to buy gold. You can buy Digital Gold for as low as Re.1. All the gold that you buy keeps adding up to create more significant assets for you. You can buyl more gold or sell any of it whenever the prices seem suitable for you. Furthermore, you can request your gold assets to be delivered to you in tangible physical form, such as coins, bars, bullions, etc., as per your requirement.

Where to buy?

You can buy from various platforms and e-wallets but make sure the one you select is a trusted platform w.r.t. purity, security and a platform which is dedicated to precious metals dealings. It also pays to have a good user experience and customer service

You can start investing in these simple steps:

  • Download the Investment App like GoldLane
  • Create a profile and get it verified (No Demat account needed)
  • Purchase is made at current live gold price (exclusive of GST). The price updates every 5 mins.
  • Enter the Gold by weight in grams or by amount in rupees
  • Link your bank account, e-wallet or card for payments
  • Make your first online Gold Investment

What do you need to invest?

There is no documentation required but you need to fulfill the following criteria because it’s YOUR GOLD that needs to be safeguarded

You will need to:

  • Signup on platform with email id and phone number
  • Net banking/Digital wallet/UPI/ Debit card /Credit card
  • KYC completion for Buy & Sell above ₹10,000 and ₹2,000, respectively*
  • KYC completion for physical delivery & exchange of accumulated gold*
  • Savings to invest (as low as ₹1)* *Applicable only at GoldLane

Features of Digital Gold app

Most apps provide these features. At GoldLane we have all these inside our app on Android/iOS. Investors can manage their accounts through the GoldLane App.

  • Buy and Sell Gold online at live market price + GST. Everything is transparent and no hidden costs
  • Gold Savings Plan: These are Systematic Investment Plans wherein you buy gold worth a fixed amount depending upon the Plan that you select. At GoldLane we have 3 plans: Basic Plan : ₹1000 / month
  • Standard Plan: ₹5000 / month
  • Premium Plan: ₹10,000 / month
  • All these plans are for a year and you get extra benefit of free silver at the end. There is also option of customising the plan*
  • Get Gold coins/bars delivered at your doorstep. For this service you need to pay the making and shipping charges, as you would in the Jewellry store. These coins are BIS hallmarked and assure purity of gold
  • The gold that you have accumulated can also be converted to gold jewellery at the partner stores. The list of partner stores is available on the site.
  • You can gift the it to your family and friends along with personalised e-cards.*
  • The App gives the investors daily updates on the latest gold prices to allow for an easy investment experience* *Applicable only at GoldLane

GoldLane offers a very user-friendly interface making it really easy to understand and use for anyone and everyone.

The COVID-19 pandemic has disrupted the brick and mortar business model of Indian gold retailers and has become a catalyst for online channels to boost sales.

World Gold Council Report

What are the Benefits?

Advantages of Digital Gold are several over the traditional method of investing in Gold. Some of the most substantial advantages are as follows:

Buy Gold anytime, anywhere

Forget about the hassle of visiting jewellery stores, comparing prices and verifying the purity of Gold that they offer. Buying Digital Gold with GoldLane is a super quick and convenient method of making investments. Through the website or App, you can sell and buy Gold online whenever and wherever you like. Payments are convenient, ensuring an optimum purchase experience for the users.

Purity and Security Ensured

GoldLane offers 99.9% pure 24K gold and it comes with a certificate from assayers. The Digital Gold is always backed up with physical gold stored in vaults dedicated to you. With GoldLane, you do not need to worry about the purity of the gold. Furthermore, all transactions on GoldLane are highly secure so that no users face any inconvenience.

Extremely Flexible Investments

Most platforms are now accepting Digital Gold as a mode of payment or for exchanges. You can now use it to make online purchases. You can also get it exchanged for jewellery, coins or bars whenever you want. You can even sell it whenever the prices seem lucrative to you. Unlike other forms of intangible and complex investments, Digital Gold takes the trophy of being one of the most flexible online investments ever.

Unrestricted Investments

Unlike other investments, there are no restrictions on selling or buying Digital Gold online. There is no eligibility criteria, such as age, annual income, professional status, economic status, minimum savings account balance or even qualifications. These investments are unrestricted and open for everyone who wishes to start investing immediately.

Instant Investments

Digital Gold Investments come with the advantage of zero waiting times. All your investments activities involving it are always instant. The Digital Gold that you own can be managed, sold, exchanged or used to make payments or purchases on any platform on the click of a button. Such instant investments are able to keep up with the fast speed of the financial requirements today.

How can you use Digital Gold?

Imagine you have gold and want to sell it in emergency for cash. You go to the gold market and your gold is converted to cash within 2mins, no questions about purity, no questions about valuation asked.

This is what exactly happens when you sell your digital gold. You can use it:

  • In financial emergency
  • To earn profit by selling instantly when prices go up
  • To save gold using savings plan to buy jewellery at the end of the period
  • To gift gold instantly, especially when you want to gift on short notice

Industry estimates show that total trading volumes of digital gold in 2019 were ~4-5tonnes with an estimated 2.5mn active investor

World Gold Council

Digital gold vs Physical gold: Which is it?

Both are ways to buy a common commodity: Gold. So, what’s the difference? There is a lot of difference in buying Physical gold vs Digital gold

Digital gold gives you an extra option to keep your gold with your service provider and still owning it. Physical gold is in the form of coins, bars & jewellery. Digital gold can be converted to these forms anytime you want.

Gold jewellery can be worn anytime you want, on the other hand no one can steal digital gold from you. Digital gold is more liquid as it can be sold in one click (no questions asked)!

Digital Gold has made it most convenient to invest in gold but it’s upto you to take advantage of it.

I’m ready to invest in Digital Gold. Now what?

How to buy digital gold online? Get knowledge about how the gold market works by subscribing our emails. Make an informed decision on when to buy gold by getting acces to our newsletter. And track your networth daily through statistics feature in our app

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