Introduction
Hello everyone. In this era where the price of gold is increasing, the crowd in front of the jewelers and the interest of people in investing in gold have not diminished. Although there are many ways to invest in gold, you can invest in digital gold through Google Pay, which is the payment app of most people.
So what kind of futures have they given in Google Pay’s digital gold? Can we invest in it, is it profitable to invest in this way, I am going to share with you the complete details about Google Pay’s digital gold investment through this post.
How to Open Gold Investment Option in GPay
Since Google Pay is basically a payment app, you won’t see many futures like other digital gold platforms. Open Google Pay. If you go to the search option and search for “Gold Locker,” the option for digital gold investment will be open.
Minimum Investment
As I said earlier, they have given only three options: the very simple Buy, Sell, and Delivery. If you look at the top, they have given the live price of 24-carat gold per milligram. You can invest in digital gold here from a minimum of ₹1.
I said yes and invested ₹1, and when I checked, the digital gold value of ₹1 was not even 1 milligram, so even though they debited it from my account, it was not added to my gold wallet. Moreover, this transaction failed, and the amount was returned.
Maximum Investment
When you buy gold, they deduct 3% of the amount you can pay as GST and add only the remaining amount of gold to your account. You can invest in digital gold up to a maximum of ₹49,999 in a single transaction. They also said that you can invest up to ₹2 lakh per day in this way.
Is It Safe to Invest?
No matter what investment you make, you should definitely check whether it is safe or not. In that case, even if you have invested in digital gold through GPAY, GPAY does not provide this service to you directly. MMTC-PAMP is such a company that is a partner of GPAY and provides the option to invest in this digital gold.
This is a company formed by PAMP, a gold and silver brand from Switzerland, and MMTC Limited, which is an Indian government undertaking. They have been providing their services since 2008.
MMTC has said that you can trust us to invest because all the gold you can invest here is safely stored in their wallet and is continuously monitored by a SEBI-registered Universal Trusteeship company. Also, this wallet is insured. They have said that even if this wallet gets destroyed due to natural disasters, we will refund your money.
Gold Selling
You can maintain the gold you save in this wallet for up to 5 years for free. After that, it is up to MMTC to extend it. Even though they have given so many futures for safety, you cannot simply choose to buy gold. That is why you can test the sell option and click on the sell option, and they will display the selling price of gold.
Spread
Be it the buying price or the selling price, both of these are constantly updated depending on the live price of 24 carat gold. I could see a difference between the buying price and the selling price. If you look at the reason for this difference, if we sell any product at the price at which we bought it, we will not get any profit. That is why, not only for their profit but also for a few other reasons, they have said that they have given this difference in the buy and sell price.
While the buying price is ₹12.59 paise for 1 milligram, the selling price is ₹12.22 paise. Everything is excluding GST. Let’s convert all this to grams and calculate it. The price of 1 g, 24 carat gold is ₹12,590. Now let’s say that the selling price is ₹12,220 at the same time.
Now if we calculate the difference between the two, it will be ₹370. There is a difference of ₹370 per gram. There is a difference of almost 3% between the buy and sell prices. This difference is called the spread. This spread cannot always be 3%. It can change depending on the market situation.
Long-Term Investment
So, look at gold as a long-term investment. You can look at it that way and put a price of 3% GST + a 5% spread. Remember that when the total of these two goes more than 8%, you will have to sell it, and you will get some profit.
You can invest in this digital gold little by little whenever you feel like it. They have said that the weight of the gold you have invested in will be 0.1 g, and you can sell it after it reaches that level.
Redeem as Physical Gold
If you need, you can convert the digital gold in your account to physical gold and order it to be delivered to your location. All the coins for this physical gold are available from a minimum of 1 g. You can order physical gold that is equal to the weight of the digital gold in your account, or physical gold that is less than that. They do not offer any option like ordering with extra amount or purchasing physical gold directly using this app without investing in digital gold.
Delivery Service Available Locations
They have mentioned that they charge ₹1,000 for delivery plus making charges for 5 g gold bars and ₹1,800 for delivery plus making charges for 10 g gold bars. As you may have seen, all the coins for 1 g and 2 g gold are out of stock. Not only that, their delivery service is not available in many locations right now.
When you type in Chennai, Coimbatore, Madurai in Tamil Nadu, it seems like they are available everywhere. If you put in the Trichy PIN code, it says that they are not available. Especially if you put in the PIN code of the southern Tamil Nadu districts of Thoothukudi, Tirunelveli, and Kanyakumari, it says that this type of delivery service is not available there.
Therefore, if you are thinking of investing in this platform just to redeem physical gold, first check your PIN code and see.
Even with all these things, I will give my opinion. Gold is a long-term investment. If you want to get profit from it, then you will have to wait for a few months. Since the price of gold is increasing in the current situation, you can only invest in it if you can buy at least 1 g of gold and wait until the price increases by more than 8%. Before investing in this way, compare the buy-sell price available on this platform with other platforms that have similar prices. Compare everything, see how much the spread is, and invest in whatever you feel is best.
My Opinion
If you are planning to invest a little in digital gold and redeem it for physical gold in the future, I would not recommend this platform to you. If you are going to redeem for physical gold, decide whether you are going to redeem it first or convert it into gold.
After making that decision, I would recommend looking at all of the factors, like where the charges are for coins, where the value added charges are for jewels, and investing in digital gold through the jeweler’s application that you think is best.
If you have already invested in digital gold through GPAY, please share your experience in the comments.