Amazon Pay, a financial extension of Amazon India is now allowing users to buy digital gold for as low as Rs.5
Amazon customer can now buy or sell gold at any point, the digital gold investment feature is termed as ‘Gold Vault’. Amazon pay has joined hand with Safe Gold for this new feature. This feature allows the customers to buy or sell any amount of gold with competitive pricing at any point without the hassle of renting lockers.
What is SafeGold?
SafeGold is a systematized and transparent way of buying 24-carat gold metal in consideration with all applicable laws and regulations. It offers gold with 99.5% purity. The gold purchased from SafeGold is maintained in a very secure vault.
Who are the other digital gold players?
Paytm, Google Pay and PhonePe have been offering a similar digital gold feature which allows the customers to buy gold for as low as Rs.1.
Paytm and PhonePe have been offering the feature since 2017. MobiKwik soon joined the race in 2018 while Google Pay launched the feature last year. Xiaomi’s MiPay too launched the feature in April this year. Even Axis Bank-owned Freecharge has been keeping up with the digital gold platform.
In April on the festival of Akshaya – Tritya which means ‘never diminishing’, it is believed that buying gold guarantees endless wealth and Paytm stated that it sold over 37kg of digital gold on the digital gold platform. On the festive terms, even PhonePe claimed a selling of over 100 kgs of gold on the digital gold platform. Even Flipkart mentioned that the gold transactions on the digital platform increased by 125%.
Why is it a good idea to keep digital gold?
Gold is considered as a safe investment as at the time of other investments such as bonds or stocks declining, its price increases. Gold can be volatile in the short run but always maintains the price in the long run. Considering digital gold, it is even more liquid and can be availed easily at the time of financial emergencies.
Here is a list of benefits
1. Easy Buy and Sell
With 3 simple clicks on your electronic gadget, you can buy or sell gold without having it physically which makes it uncomplicated, straightforward and effortless. The complete implementation encompassing the definite transaction, the debit to your bank account and the credit to your online digital gold account happens seamlessly.
2. Friendly for medium-size investors
Gold is a precious metal which costs high, but with digital gold, one can invest as low as Rs. 1. It is like a mutual fund where one can invest money in gold and also the risk involved is low. Since it is stored in an electronic form, it does not have any storage charges and hence it is very beneficial for medium investors.
3. Safety and Purity
The gold purchased is backed up by physical gold with the help of the portal that ensures the security of your investments at all times. One also gets the access to a vault with no extra charges for a term of 5 years post which one can choose to redeem or sell gold.
Gold is a safe investment and can be easily liquidated, digital gold can be liquidated even easily giving a fair advantage to it. One can buy or sell it at the prevailing market rate which is same throughout the country and can encash it at any time.
The digital gold platforms are recent in India where buying gold is very auspicious and is often used for gifting purposes. India has been one of the biggest markets when it comes to gold. It is speculated that digital gold platforms can perform fairly well, one can also add it to the investment portfolio which will always give them an edge over others.