Digital gold so many queries---Experts join the chain please.

The main risk is that these platform may sell dogital gold more than their physical gold reserve. But all these are big enough and trusted enough to not face any such issue. Mmtc-pamp has govt ownership so it is more trusted as per me. The price is lower than bullion because of making charges, physical charges etc. But you will be charged 3% gst while buying and 3% while selling. If you see one platform selling at lowr cost than other, remember that the same will be the case when you have to sell and thus you will get less back as well so its all even out. Charges are similar on all platform to buy but some offer 1-2% cashback time to time (Jupiter as of now) but don't go with the cashbacks, stick to the platform you can stay in for the long term (phonepe, paytm etc)

legend101 wrote:

The main risk is that these platform may sell dogital gold more than their physical gold reserve. But all these are big enough and trusted enough to not face any such issue. Mmtc-pamp has govt ownership so it is more trusted as per me. The price is lower than bullion because of making charges, physical charges etc. But you will be charged 3% gst while buying and 3% while selling. If you see one platform selling at lowr cost than other, remember that the same will be the case when you have to sell and thus you will get less back as well so its all even out. Charges are similar on all platform to buy but some offer 1-2% cashback time to time (Jupiter as of now) but don't go with the cashbacks, stick to the platform you can stay in for the long term (phonepe, paytm etc)

I think there are no Charges while selling Digital Gold.

satraghav wrote:

I think there are no Charges while selling Digital Gold.

its better to buy gold ETF than digital gold. all ETF are properly regulated. for SIP also ETF is always better. 

panchabhut wrote:

its better to buy gold ETF than digital gold. all ETF are properly regulated. for SIP also ETF is always better. 

prabha.avum wrote:
In safegold we have option to lease the gold to decent vendors and generate income

When I had last checked them few months back, the additional yield/income was only ~ 1-1.5% p.a!!  

They were claiming 3.5-4% p.a. But SGBs itself give 2.5% p.a. - with sovereign guarantee. 

So then, risking the entire capital on an unregulated market (gold lease is not regulated) for additional premium of just 1-1.5% is a very poor financial decision.

And that too when the savings on the other end (jeweller as borrower) is going to be over 4-5% {Banks won't lend to jewellers below 11%; here they will get it at 4% + safegold's commission of maybe max 2%, so 6% - net interest differential of ~5%}

Why do you want to be dealt a bad hand?!