What is Digital Gold? Learn how to buy Digital Gold

October 30, 2021 Trading 3 min read
What is Digital Gold Learn how to buy Digital Gold

Digital Gold 

Investing the money in buying digital gold is a more viable option than any other trade service, only because of its stable hike in prices. 

The Working model of Digital Gold 

  • Digital Gold in INR or Grams -Decide and enter an amount in INR or weight to buy digital gold. The digital gold will be priced according to the live market rate.
  • No-Hassle Payment Method – Make payment via credit /debit card, UPI, or net banking.
  • Gold is in the Vault – The digital gold is purchased!! The customer account gets instantly credited with the digital gold with 24/7 access to it.

Options to avail Digital Gold 

The customer can always avail of their digital gold through these three mediums to provide its customers with a delightful experience.

Physical Gold – If the customer wishes to convert their digital gold into physical gold, they can drop the request to the respective brokerage firm, who holds the responsibility to safely deliver the gold to customers’ doorstep. The customer will, however, have to pay a nominal delivery charge.

Sell at your convenience – The customers can sell their digital gold as per their convenience. The digital gold can be sold online at any point in time.

Gold for your Loved Ones – The customer can gift digital gold to their loved ones making the occasion extra special for them. Gifting gold becomes stress-free with digital gold because your applied brokerage firm handles storage and security.

With experience of over 20 years, TradeSmart is an online business venture of VNS Finance. VNS Finance has been working under the guidelines of NSE (National Stock Exchange of India) since 1994 in furnishing their customers with full-services broking.

TradeSmart was launched in 2013 with an idea to increase efficiency, eliminate errors and reduce cost-efficiently by adopting new technologies. The team has been successfully achieving its targets with its business models.

Important note: TradeSmart does not offer digital gold ETF purchases online to its customers. 

 Frequently Asked Questions 

What is the open sale back window?

The open sale back window is the period during which a customer can request to sell their digital gold on the platform. The customers can, however, redeem their digital gold in the form of physical gold.

What is the live gold price?

Live gold price is the gold price in Indian currency (INR) which is exclusive of manufacturing, delivery, and tax charges. Live gold prices are generally in per gram. 

What is the maximum period to store digital gold?

According to guidelines issued, any customer can purchase digital gold and store their digital gold for a long-term period of 5 years from the date of purchase. The customer can buy or sell their digital gold at any point in time in these five years. However, once this duration is complete, the customer will either have to sell their digital gold or convert it into physical gold. To extend the custody of their digital gold, the customer will have to pay a nominal charge.

Will any brokerage firm deliver the requested physical gold to other family members if the registered customer is unavailable?

Whichever firm you apply through, you will be requested to share the details of a designated person to whom the delivery of gold has to be made. To ensure safety and security, gold cannot be handled by any other person except the registered customer. The designated person will receive an OTP on the registered mobile number and needs to be shared with the delivery person. After verifying the OTP, gold will be delivered to the customer.

 Is the customer allowed to visit and inspect their gold physically?

To ensure the safety and security of gold, the customers are not allowed to visit their vault storage to inspect their gold holdings.

Is the physical gold delivered to customers genuine and trustworthy?

The physical gold delivered to customers in the form of coins was sealed and packed under camera surveillance. In case the customer receives a tampered package, they are requested to not accept the parcel and raise a complaint.

Can minors purchase digital gold online?

Minors are not eligible for any transaction of digital gold online.

What are the factors that affect the gold rate in India?

The Indian gold rate changes because of the international gold rate, USD-INR currency fluctuation, and customs duty, among other factors.

What tax implications does the customer have for purchasing and accumulating digital gold?

Taxes are included in the invoices of the digital gold. Whenever the customer purchases or sells digital gold, taxes are being calculated accordingly.

Is digital gold taxable in India?

The ownership of digital gold for less than 36 months will not be directly taxable on the customer’s returns. However, if the customer plans for a long-term investment they would require to pay 20% of tax returns on their digital gold.

Can digital gold be used for collateral purposes?

Yes, digital gold can be used for collateral purposes for an instant online loan.


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