Ways to Buy a Digital Gold
At the moment there are two options to buy gold digitally: ‘Digital Gold’, offered on the mobile wallet platform Paytm and ‘GoldRush’ offered by the Stock Holding Corporation of India. Both are offered in association with MMTC – PAMP.
Under GAP, a customer using either of the two platforms can buy 24 Karat / 999 fineness gold. Although both, Digital gold and Goldrush, are offered under MMTC-PAMP’s GAP, some features such as minimum amount for which you can buy gold are different. As per the GAP offered on the Stock Holding Corporation platform, a customer can buy from a minimum value of Rs 1,000 or multiples of Rs 100 thereafter. He/ she is not obligated to make any fixed or periodic payments unless ECS facility is opted for.
• You can buy or withdraw anytime online 24 hours a day, 7 days a week, and 365 days a year.
•You can buy for a minimum value of Re 1 or the minimum amount of gold you can buy starts from 0.001 gram.
• Live gold prices are offered per gram which is inclusive of taxes, foreign exchange conversion, customs duty and other operational costs but is exclusive of product manufacturing / making charges, delivery charges. The price is updated frequently.
• The price at which you choose to buy or sell the digital gold is valid for only 6 minutes.
• Registered Paytm user with a valid log-in ID and password.
• You will be prompted to enter name and expected delivery pin code. You can only buy gold only if the pin code entered is serviced by Paytm.
• In case cumulative transaction value in the account crosses Rs 50,000, you will be required to adhere to the prevailing KYC norms.
• If a single transaction value crosses Rs 2 lakh, you will have to submit your PAN details.
• Proof of address (Passport/Voter ID/Aadhaar/ration card/electricity bill (not older than three months))
• Passport is mandatory for NRIs.
Maximum time period to keep gold digitally:
Paytm allows you to keep the digital gold for maximum time period of 5 years from the date of purchase after which you have to redeem it either by selling it or by converting it into gold coins. In case of purchases on different dates , the time limit of 5 years for each purchase is taken from the date of that particular purchase.
Storage and charges on redemption:
Paytm Gold is stored absolutely free of cost in highly secure vaults of MMTC-PAMP. There are no extra charges for storing gold on the platform. However, there are making and delivery charges that are to be borne by the customer when digital gold is converted into gold coins. the price at which a customer can sell the digital gold back to Paytm is slightly less.This is due to various transaction related costs including taxes, bank charges for processing your payment, technology costs and hedging costs since the market prices may fluctuate between customer placing order and MMTC-PAMP buying the gold.
It’s quick and easy:
Nearly eight in 10 americans are online shoppers, according to the Pew Research Center. It comes as no surprise: Today’s shoppers want convenience and what’s more convenient than shopping in your pajamas from your couch? In terms of bullion, buying it in person means rearranging your schedule around the times that the dealer is available, as well as trekking there in person.
It’s priced to sell:
Buying in bulk often allows dealers and refineries to get the best pricing for bullion, which might then pass on to you. Manhattan Gold & Silver (MGS) actually sells its own branded 999.9 fine bars, which are sealed, certified and labeled with serial numbers. This gives you the peace of mind that you’re not only getting a fair deal, but also an authentic product.
You don’t have to worry about storage:
Most houses aren’t built with a strong room, which is designed to protect valuable items against fire and theft. As a result, when you buy a bullion bar or coin, you also have to find a place to store it. Buying gold online often comes with the option to either ship the items directly to your house or have them safely stored on your behalf. If you select the latter option, just make sure to ask the company how your assets are being safeguarded from theft.