The world is changing at an unprecedented pace with time. Every industry around the world has witnessed a drastic change in its dynamics in the last couple of decades. This can mainly be attributed to the arrival of the internet. Today, with the help of the internet, you can talk to your loved ones over a video call, shop your favourite clothes, buy electronics, and a lot more. So, how is it possible for the investment industry to lag? With this digitalisation, the concept of online investment has also evolved.
Today, you can invest in stocks, bonds, digital estates, and a lot more. However, in recent times, digital gold has become a potential investment option. Yes, now you can invest in gold digitally without purchasing its physical equivalent.
In this guide, we will be discussing the fundamentals of digital gold, why investing in digital gold can be beneficial to you, and how to invest in digital gold with CASHe.
What is Digital Gold?
The digital equivalent of actual gold, as the name suggests, is digital gold. In other words, it is an online investment option that allows you to buy small fractions of gold without needing to store it physically. Unlike traditional gold investments, you do not need to buy jewellery or gold bars to invest in gold.
You can download mobile applications like the CASHe mobile app or visit its official website www.cashe.co.in and sign up for an account and you are all set to invest in digital gold. The best part is you can make investments in denominations as small as ₹1. Moreover, the digital gold you would be owing is 99.9% 24K pure.
How Digital Gold Works?
Investing in digital gold allows you to buy small amounts of gold online with the help of platforms like CASHe. When you invest in digital gold, the platform buys real gold for you and stores it safely in secure vaults. The gold is then represented as a digital asset in your account and you can manage it online. You can sell or convert this digital gold into physical gold whenever you want. The value of this gold would change based on live market prices.
Digital Gold Vs Physical Gold
Here’s a table that highlights the major differences between digital gold and physical gold:
| Feature | Digital Gold | Physical Gold |
|---|---|---|
| Accessibility | Can be easily accessed with a mobile app and is traded online | Needs physical storage and requires visits to a store for purchase |
| Storage | Stored electronically | Needs safe physical storage |
| Liquidity | High liquidity online | Involves many steps for selling |
| Maintenance | Low maintenance | High maintenance as gold jewellery may require regular cleaning |
| Ownership | Digital possession on an online platform | Physical possession |
| Transferability | Instant transfers | Transfers limited by locations |
| Risks | Minimal risks | Chances of theft or loss |
Why Invest In Digital Gold?
Investing in digital gold is going to be a big part of the finance world in the coming days. It is the future and hence, you should be aware of its benefits beforehand. So, here we list down the top benefits of digital gold and why investing in it is a wise move.
Accessibility
When you invest in digital gold, you do not need to worry about storing physical gold. As it is available online, you just need to have a decent internet connection and a digital gold account to start your investment journey. Consequently, you can have access to it from any part of the world.
Fractional Ownership
As mentioned earlier, you can buy and own very small fractions of gold and hence, you do need to empty your pockets for the investment. This makes it affordable for you and easy to diversify your investment portfolio.
Liquidity
Unlike many other investments, digital gold investments offer high liquidity, which means you can buy or sell your holdings easily and have a quick way to convert assets into cash whenever needed. You can also exchange your digital gold for physical gold.
Security
As you do not have physical gold to store, the risk of theft or loss is also minimised here. Digital Gold is securely stored in digital form and hence, provides you with a convenient and safe alternative.
How to Invest In Digital Gold with CASHe
Investing in digital gold with CASHe is easy. Here is the step-by-step process for you to understand how to invest in digital gold with CASHe:
Step 1: Download the CASHe mobile app from the Google Play Store or App Store
Step 2: Sign up to create a new account and fill in the required information. Complete your KYC process and submit the required documents such as a valid identity card, photo, etc.
Step 3: Now that your account is set up, you can deposit your funds to make the purchase.
Step 4: Go to the Digital Gold section and choose the quantity of gold you wish to invest in.
Step 5: Complete your transaction by making the payment.
Step 6: Track and manage your digital gold investment through the app.
Taxation On Digital Gold and Physical Gold in India
When you invest in digital gold, you should be aware of the taxes involved. In India, both digital and physical gold are subject to taxes. If you sell your digital gold within three years of buying it, the profit is taxed as short-term capital gains and the tax would be according to the income tax slab. If you hold it for more than three years, it is taxed as long-term capital gains, which would be 20.8% on selling and 10% with a flat 3% GST on buying.
Risks and Mitigations
Here are some of the risks associated with gold investment along with the way to reduce it:
| Risk | Mitigation |
|---|---|
| Market fluctuation | Diversification |
| Cybersecurity risks | Choosing the right platform with two-factor authentication |
| Regulatory changes | Stay informed beforehand |
| Platform risks | Sign up with trustworthy platforms like CASHe |
Also Read: Digital Gold Vs Physical Gold- Which is Better?
Conclusion
Investing in digital gold can be a good alternative to buying physical gold. Moreover, if you are looking for an easy way to invest your money, then DigiGold with CASHe would be the right option for you. You can invest money as low as ₹1 and have a small fraction of gold to your name. So, it doesn’t matter whether you are a big-time investor or just starting your investing journey, you always have options to go with. Moreover, once you have this digital gold under your name, you can easily encash it or exchange it for real gold at the market value. Sounds like a great deal, right? Download the CASHe app and begin your investment expedition right away.
Frequently Asked Questions (FAQs)
1. What is CASHe Digital Gold, and how does it work?
Digital Gold is just like Real gold stored virtually on your name. They can check live prices on the app and based on how much they wish to pay or the weight they wish to buy. Investors can seamlessly check live gold prices and initiate transactions with a simple click.
2. What features does CASHe offer for a better Digital Gold investment experience?
Cashe provides you an opportunity to purchase 24 karat pure gold for as low as Rs.1. simple, convenient, and easy to understand investing process.
3. How does CASHe ensure the security and authenticity of Digital Gold?
Your gold is saved in secure Augmont vaults.
4. What are the highlighted benefits for users investing in Digital Gold on CASHe?
Investing in gold for as low as Rs 1. Gold saved in secured vaults of Augmont.
5. Are there any extra charges for Digital Gold investments on the platform?
No extra charges on digital gold.
