Gold is one of the most popular investments in India, where people across the nation consider it to be a precious metal used not only for its incremental value but also as a good omen.
With everything going digital, gold has also entered the e-market, where you can buy and sell gold on digital platforms without physically owning it.
This helps you benefit from the increasing gold prices and opens a significant trading opportunity for traders with the utmost safety and transparency.
Below are the top apps to buy digital Gold in India.
The leading payment tool, Paytm, offers a dedicated portal for e-gold investments. Paytm Gold is made for Indians to buy and sell gold, gift it to their family and friends, and even get it delivered in physical form if needed.
It has partnered with MMTC PAMP to make sure that you get the finest and most authentic quality of gold which is internationally authorized and accredited.
Whenever you buy gold through the Paytm app, MMTC PAMPM keeps the quantity of pure gold in their 100% insured vaults which you can access online. To get it delivered to your address, all you have to do is place the order and pay for the making charges.
Otherwise, the most common way to keep them is to buy and accumulate them online to profit from the increasing prices.
Currently, you can invest in Gold with Paytm at the price of Rs 5008.18 per gram with a 999.9 purity level.
One of the biggest jewelry players in the Indian market, Tanishq also offers digital gold to its customers.
You can purchase 24-karat pure gold through their platform with transparent functioning, with products that are powered by SafeGold.
Invest as low as Rs. 100 or as much as you wish!
Tanishq’s digital gold can also be exchanged across 350+ stores in India, where you can buy it in its physical form.
When you buy digital Gold with Tanishq, you do not have to bear any locker fees as the gold is safely stored without any hidden charges. The platform allows you to buy or sell gold anytime with only a few clicks!
Their robust customer support ensures you never face any issue while investing in digital gold through their platform.
3. Google Pay
Google Pay has also partnered with MMTC PAMP India Pvt. Ltd. to bring you a hassle-free investment in digital gold. With 99.99% purity, your investment is completely insured, and MMTC PAMP stores it on your behalf in their safe lockers.
You can track and monitor the gold you purchase through GPay on their app under the ‘Gold Locker’ section and sell it anytime you wish to. All the transactions are visible on the gold locker itself.
To buy digital gold on this platform, all you have to do is open your app, tap on ‘new,’ search for ‘gold locker,’ and buy the quantity of gold that you wish. The best part about investing in Gold through Google Pay is that it lets you buy gold at the current market price plus taxes.
Hence, the buying price change throughout the day. However, with the app, you can only buy Rs. 50,000 worth of gold in one single day, whereas the minimum purchase of gold starts at just Re. 1.
When you proceed further with the purchase of digital gold, its gold appears in your ‘gold locker’ in only a few minutes.
You can buy certified 24K gold with PhonePe’s facility of enabling you to buy gold online.
The ‘my money’ section on the app is where you can place the order of your digital gold and convert them into gold coins and bars if needed later.
You can start investing in gold with as little as Re. 1 and collect it over time, and be rest assured of the safety and quality of the same as PhonePe’s digital gold facility is backed by not just one but two gold providers: MMTC-PAMP and SafeGold.
You can sell, buy and track gold prices on the app throughout the day and night. The gold is stored for you in insured lockers without any additional cost and delivered to you in physical form if needed.
The gold price is determined according to the current market price of gold on the application itself.
If you have a savings account with the Airtel Payments Bank, you can start investing in 24K gold from the Airtel thanks app itself.
They call their electronic gold investment ‘DigiGold’ and also allow customers to gift and transfer gold seamlessly to their family and friends if they have a savings account with Airtel Payments Bank.
The platform is powered by SafeGold, which makes sure that every customer investing in god through Airtel Payments Bank App gets 99.99% pure 24K gold which is securely stored in SafeGold’s lockers.
Gold can be bought and sold on the app within seconds, with the minimum investment price being Re. 1.
Offering electronic gold is one of the latest additions to Airtel Payments Bank’s banking services, and the authorities have been working on introducing SIPs for Gold as well in the future.
RBI regulations to invest in digital gold
Since the gold market does not fall under a specific financial sector, it remains in the gray zone, having a self-regulatory auditing system with a due diligence mechanism of its own.
As of now, gold is offered and stored by 3 major companies, Augmont Goldtech, MMTC, PAMP India, and Digital Gold India.
In addition to that, the government also offers Sovereign Gold Bonds to its citizens, which are government security that is denominated in grams of gold.
They act as a perfect substitute for holding gold physically, and trading is done in terms of the price fixed per gram by the central government.
SEBI’s role in the digital gold market
Recently, SEBI has proposed a framework wherein a digital gold platform/exchange will be set up to make sure seamless trading of gold in its electronic form. Till now, the e-gold market was not regulated by SEBI, and it has ordered already registered brokers to cancel out the trading of e-gold till then.
This rule has taken place to encourage a transparent spot price discovery mechanism in the market.
The future towards the new gold spot exchanges
With investors’ increasing demand for gold, SEBI has approved its guidelines for bringing in a fully dedicated spot gold exchange.
This will provide liquidity, price discovery, and quality assurance of security along with a transparent trade mechanism. This will lead to creating a national price structure for the yellow metal which will directly compete with the SGB, Gold ETFs, and digital gold prices.
Instruments traded on these new gold spot exchanges are termed Electronic Gold Receipts or EGRs, and all recognized stock exchanges will be able to launch this new instrument in the market.
Things to remember with respect to the EGRs
- A GST will be applied on converting EGRs to physical gold.
- If you wish to store the physical Gold through EGRs, prices will be higher than what bank lockers offer.
- Converting EGRs will only be allowed after you have at least 50 grams worth of Gold in EGR form
- Retailers will be allowed to accumulate gold in this form.
- EGRs will have a tax structure similar to ETFs
- EGRs are said to be more liquid than ETFs
- Gold providers will be able to use EGRs to back the gold they have.
There have been several amendments that are taking place regarding digital gold and its existence in the Indian financial market.
However, only for the good. To make sure retail investors are safe.
A few broking houses such as Groww have discontinued the investment in digital gold due to the same reasons. But there are still some platforms enabling you to invest in one of the most sought-after things in the country – the yellow metal.
With the top 5 names that we have discussed, you should rest assured that you can seamlessly invest in e-gold without worrying about the storage, purity, or exchange of the same.