Adhere to these measures while investing in digital gold

In India, investing in digital gold has developed into a popular and accessible investment choice. Individuals can now acquire and hold gold in digital form thanks to the advent of digital platforms and mobile applications. Digital gold investment has gained traction as a convenient and secure alternative to traditional methods of buying and storing physical gold. It provides individuals with an opportunity to participate in the gold market without the need for large upfront investments or concerns related to storage and security. This novel approach to gold investment provides flexibility, affordability, and transactional convenience, making it an appealing option for a wide spectrum of Indians.
Digital gold platforms in India enable users to purchase gold in small denominations, even as low as Re 1, making it accessible to individuals with varying budgets. Moreover, the ability to buy and sell digital gold seamlessly allows investors to take advantage of price fluctuations and capitalize on market opportunities. “The key advantages of investing in digital gold are the ease of transaction and the minimum amount allowed to invest. Gold holds a special place in the heart of Indians. We love to own gold and digital gold provides the option of buying in smaller amounts and accumulating a substantial amount for future use. The digital nature of this provides transparency in terms of pricing and makes it convenient for investors to track the value of their holdings.” says Smruti Ranjan, VP, Strategy & Product at KreditBee
When investing in digital gold, there are several measures you should consider to make informed decisions:
1. Research and Verify the Platform: Before investing in digital gold, thoroughly research and verify the platform or service you plan to use. Look for well-established and reputable providers with a track record of security and transparency. Read reviews, check their regulatory compliance, and understand the measures they have in place to safeguard your investment.
2. Security and Storage: Pay special attention to the digital gold provider’s security measures. To secure your account and valuables, make sure they employ strong encryption techniques, multi-factor authentication, and other security procedures. Understand how and where your gold is stored as well. Some services provide allocated storage, where the gold is assigned to you directly, while others may utilise shared storage. Evaluate the safety of various storage alternatives and the dangers connected with them.
3. Transparency and auditability: When investing in digital gold, transparency is critical. Look for systems that provide pricing, fees, and transaction history transparency. Ensure that the supplier conducts third-party audits on a regular basis to authenticate the presence and ownership of the gold supporting the digital assets. This will give you more trust in the investment’s validity and integrity.
4. Liquidity and Redemption: Consider the liquidity of the digital gold investment. Determine if the platform allows you to easily buy and sell your digital gold holdings. Look for options that offer quick and seamless redemption, allowing you to convert your digital gold into physical gold or fiat currency when needed. Understand any associated fees or restrictions on redemption to avoid surprises in the future.

Smruti Ranjan Samal, VP, Strategy & Product at KreditBee