New Delhi: This time, gold prices have surprised investors considerably. Which Platforms Offer This Facility? Following this clarification from the regulator, it is now clear that investing in this carries risk.
<New Delhi: This time, gold prices have surprised investors considerably. While the stock market remained mostly subdued, gold prices consistently reached new highs. Investors also showed interest in digital gold. Currently, gold prices are soaring.
According to NPCI data, 94.04 crore transactions have taken place in digital gold this year. By November, the total value of these transactions had crossed Rs 12,471 crore. The investment process has also become easier.
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Investing Made Easy
Investing has become very easy. It gives you the opportunity to invest in gold without buying physical gold. One reason for the increased investor interest is that it allows for investments in small amounts. Some platforms even allow investments in digital gold with as little as Rs 10. Investors can buy and sell digital gold online from the comfort of their homes.
Which Platforms Offer This Facility?
People can invest in gold digitally. Platforms like Paytm, PhonePe, Google Pay, and Amazon allow investment in digital gold. Jewelers like Kalyan Jewellers, Tanishq, and Malabar Gold and Diamonds also offer digital gold.
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These platforms buy physical gold on behalf of investors and store it in secure and insured vaults. Investors can convert their digital gold into physical gold as per their needs.
Shweta Rajani, Head of Mutual Funds at Anand Rathi Wealth, said that unlike exchange-traded products, the price of physical gold is not determined in the open market. Platforms tend to widen the difference between buying and selling prices when there are market fluctuations.
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SEBI Has Also Alerted Investors
Did you know that SEBI had cautioned people investing in digital gold in November this year? The regulator stated that it is not a regulated product like Gold ETFs or Sovereign Gold Bonds (SGBs). Its investors do not have the protection of SEBI (Securities and Exchange Board of India). Due to the lack of regulation, there is a lack of transparency in its rules. Following this clarification from the regulator, it is now clear that investing in this carries risk.