Digital Gold Demystified: The Basics You Need to Know
A comprehensive resource for unlocking the mysteries of digital gold and achieving financial prosperity
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- NuCash
- 03 min read
#gold investment

Digital Gold Demystified: The Basics You Need to Know

We've all heard our parents chanting the golden mantra, "beta, gold mai investment best hai." But hold on a second, we know what you're thinking – investing in gold sounds like a grand affair that requires truckloads of money, right?

Well, not anymore! You can now become a proud gold investor with as little as Rs. 10 in your pocket! Yes, you heard it right – just a single rupee can be the golden ticket to the world of investment. Introducing - DIGITAL GOLD!

With digital gold, you can start building your gold holdings, one small investment at a time. So let’s demystify this exciting concept and unveil the basics of digital gold.

What is Digital Gold and How Can You Invest In It?

Digital gold is a new-age method of investing in yellow metal without having to physically hold it. It enables you to hold gold virtually.

You can purchase and store digital gold through the NuCash app itself. There are no restrictions on minimum purchase amounts, so you can buy gold at your own pace, no matter how small the amount. Although, there is a daily limit of 20gm for purchasing digital gold on the Nucash app.

Please make note: When you purchase digital gold, you have to pay 3% GST, which is same as when you buy physical gold. Which means, if you spend Rs. 5000 on buying digital gold, you will have to pay Rs. 150 extra towards GST.

Every time you buy digital gold with us, we’ll store an equivalent weight of actual 22k pure gold in a secure vault in your name in one of the three authorised gold entities in India – Augmont Goldtech, MMTC PAMP India, or SafeGold (brand of Digital Gold India).

We also offer you the convenience of digitally selling or redeeming the gold you own in your NuCash app Gold Locker with just a simple click of a button. When you choose to sell your digital gold, the money from the sale will be instantly transferred into your NuCash account, ensuring quick and seamless transactions. On the other hand, if you opt to redeem your gold, physical gold will be delivered right to your doorstep, providing you with a tangible asset.

The NuCash app offers a hassle-free and efficient process for buying, selling and redeeming your gold, allowing you to easily manage and access your gold holdings based on your preferences.

What Makes Investing in Digital Gold Attractive?

The surge in popularity of digital gold among Millennials and GenZers can largely be attributed to its convenient features, such as the ability to purchase it in small amounts, easy access to delivery, and various liquidity options. This form of investment offers risk-averse young investors an ideal opportunity to park their money in a flexible and readily tradable gold asset. safety.png

Here’re a few advantages of investing in digital gold:

1. Purity

When you invest in digital gold from authorized dealers, you take ownership of certified 22 Karat, 999.9 pure gold, which is the highest form of pure metal.

2. Safety

With digital gold, you need not worry about its safekeeping. Since it is stored in a 100% insured and secured vault, it eliminates security concerns. Moreover, you don’t even have to pay locker rent, insurance cover or an additional investment of fixed deposit to store it, making it fairly cheaper than storing physical gold.

3. Liquidity

You can instantly buy, sell or redeem digital gold at any time of the day at market rates, thus offering you high liquidity compared to physical gold.

Please note: You cannot sell digital gold within 24 hours of buying.

4. Convenience

You can initiate your digital gold investment with a nominal amount as low as Rs. 10, and gradually increase your holdings over time. This flexibility enables you to conveniently accumulate a substantial portfolio, allowing you to achieve your long-term financial objectives without the need to save for weeks and months before being able to purchase gold.

_If you are buying digital gold over Rs. 50,000, you need to furnish your PAN number. _

5. Diversification

Investing in digital gold presents an excellent opportunity to diversify your investment portfolio, particularly if you are risk-averse. Unlike the stock market, gold prices are far less volatile, offering relatively stable returns. Furthermore, the intrinsic value of gold serves as a hedge against inflation and currency fluctuations, further enhancing its appeal as a diversification asset.

6. Returns

Gold has a proven track record of delivering positive returns. Over the past 92 years, gold prices have consistently shown an upward trend.

For instance, let's consider a three-year span:

On January 1, 2020, the gold price stood at Rs. 39,100, while on July 11, 2023, it reached Rs. 60,315. This impressive increase reflects a remarkable return of 54%, highlighting the potential profitability of investing in digital gold.

7. Collateral

Digital gold can also be used as collateral for taking loans. Moreover, it allows you to leverage your holdings for securing loans or accessing credit when needed.


Key Takeaway

Today, digital assets are rapidly replacing traditional physical assets. Having said that, digital gold is emerging as a captivating investment for digitally savvy millennials who need to get on the investment train. Its versatility, purity, and value for money make it an attractive choice for those looking to diversify their investment portfolios.

If you're interested in getting started with digital gold, NuCash offers a convenient solution. Through the NuCash app, you can easily purchase and securely store digital gold using just your smartphone. We empower you to embark on your digital gold journey by providing you the flexibility to invest your spare funds or set a regular investment amount daily.

Download the NuCash app today and start investing in digital gold!


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