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Why Is Digital Gold A Popular Investment Option During Festive Season?

Updated On Sep 27, 2023

In India, gold has been treated as an auspicious metal since time immemorial. It has been passed from one generation to another and even used for investment or wealth creation. Now, with the advent of the digital age, there has been a significant shift from physical gold to digital gold. This is the reason why its popularity has increased especially during the festive season. So, here are some reasons why investing in digital gold is a popular investment ahead of the festive time.

What is Digital Gold?

Why Is Digital Gold A Popular Investment Option During Festive Season?

Digital gold as the name implies is a new approach in which you can buy gold online. It is in all ways equivalent to physical gold and can be bought in a very hassle-free manner. The best part about investing in digital gold is that it starts with a very minimal price. Some of the popular options for digital gold include Gold ETFs, Gold Sovereign Bonds, Gold Mutual Funds, and many more. Scroll through the section below to learn more about them.

Top Reasons to Invest in Digital Gold This Festive Season

Listed below are some of the reasons why you should invest in digital gold this festive season:

  • The minimum investment amount in digital gold is Re. 1 which makes it a very affordable option. Unlike physical gold which costs a hefty amount, digital gold on the other hand is a comparatively cheaper option. So, if you are looking for affordable ways of investing in gold this festive season, then you can do so with digital gold.
  • Digital gold can be opened in different financial institutions. It even works as loan collateral. This means that you can use digital gold to take loans from anywhere.
  • Investing in digital gold is a hassle-free process. On the other hand, when you are buying physical gold, you need to go to the shop and they buy it. The different forms of digital gold can easily be bought from the comfort of your home.
  • Digital gold is more pure in comparison to physical gold. This means that when you are buying digital gold you need not worry about its purity. Typically, digital gold is 24 karats and thus 99.99% pure.
  • Digital gold is a safer option than physical gold. Unlike physical gold which needs to be kept in lockers for safety, digital gold can easily be stored.
  • You can easily exchange digital gold with physical gold or bullion as and when required. 
  • If you are gifting digital gold to your loved ones, then it is a good option as the digital gold account can be directly managed by the recipient.

Different Types of Digital Gold

Listed below are the different types of digital gold you can consider investing in:

  • Gold ETFs: Gold ETFs or Gold Exchange Traded Funds are one of the most common ways of digital gold. It can be easily purchased as gold stocks, however, when you invest in digital gold, you need a certain grams of digital gold to start trading it later.
  • Sovereign Gold Bond: Sovereign Gold Bonds are another substitute for physical gold that is issued by the Reserve Bank of India. This scheme offers a great return in the long run and is thus a preferred option by a number of investors.
  • Gold Future Contracts: Gold Future Contracts are ones that get traded on organised exchange at an agreed price.

Steps to Invest in Digital Gold

Here is how you can start with digital gold investment this festive season:

  • First, you need to open your demat account which should also be linked to your bank account and PAN 
  • You also need to complete the mandatory KYC for opening your demat account
  • From stock exchanges, you can directly select a desired digital gold option. You can start investing starting from Re. 1.
  • Finally, you can redeem it during maturity or even trade it

Take Away

Thus, offering a bunch of benefits, digital gold is gaining more and more popularity. So, this festive buy digital gold for yourself and your loved ones.

Also read: How Will Mutual Fund Multiply Your Savings?


This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.