<h1>Things to Know Before Investing in Digital Gold</h1>It's been ages since people started <a target="_blank" rel="noopener noreferrer" href="https://www.spare8.com/buy-digital-gold">investing in gold</a> and of course consider the yellow metal as a safer investment option than debt or equity. Now, with the growth in technology and people opting for digital advancements more than ever, it is no big deal for them to invest in the fast becoming popular — digital gold! As it is known, online digital gold is a virtual product which allows you to buy and hold gold virtually without a safe or bank locker at your disposal. The online gold that you invest in is kept securely by the investment app or party you have purchased the gold on. Before you start investing in online digital gold it is of utmost importance that you know the pros and cons of virtual gold.<img src='https://spare8-strapi-assets.s3.ap-south-1.amazonaws.com/b12b05_88453e2a919a4227b2107f1a2c050953_mv2_26a8381d01.webp/xs.jpg' class='progressive-image' style='width:100%;max-width:600px;display:block;margin:0 auto;' loading='lazy'/><h2>Pros of Digital Gold</h2>Storage: When you buy or invest in digital gold on Spare8, you do not have to pay extra for bank locker rent, insurance cover, or additional investment of fixed deposit. Spare8 makes sure that your purchased virtual gold is stored in vaults secured by regulated independent trustees. No Defined Cost: You shouldn’t have that load of calculating the minimum amount while investing in digital gold on Spare8. We do not have any defined minimum or maximum limitations with regard to your investment. You can start investing in online gold with as little as a rupee and invest as much as you want to. Uniform Price: The price of physical yellow metal tends to vary from one city to another and from one jeweller to another. When it comes to digital gold, the prices of virtual gold stay the same across the country. While making charges involving physical gold is higher, digital gold comprises just the 3% GST. Instant Liquidity: While investing in digital gold, you need not worry about its redemption period. On Spare8, you will get the benefit of no lock-in period for your virtual gold. You can invest today and take back the investment even the next day. You can literally sell or redeem digital gold at the click of a button. Once you sell the virtual gold, the value of it is instantly transferred into the bank account through a 24x7 market linked rate. Also, if you are looking for your digital gold redemption, the physical gold will be delivered to you at your doorstep. Collateral: One of the most awesome features of investing in digital gold is that you can use it as a collateral for taking loans.<img src='https://spare8-strapi-assets.s3.ap-south-1.amazonaws.com/b12b05_bccb58cf388849828a9d812642f18f85_mv2_60a0cd4cdd.webp/xs.jpg' class='progressive-image' style='width:100%;max-width:600px;display:block;margin:0 auto;' loading='lazy'/><h2><a target="_blank" rel="noopener noreferrer" href="https://www.livemint.com/money/personal-finance/investing-in-digital-gold-know-the-risks-and-costs-involved-11599135754184.html">Risk Factor of Digital Gold</a></h2>Paying GST: While investing in digital gold will save you from making charges, you will have to pay the tax for the same. Digital gold investment involves a 3% GST amount. When you sell your virtual gold, you cannot certainty expect the GST back from the next buyer. Spread Cost and Capital Gain Tax: While making an investment in digital gold, there is an additional cost charged from the investor in the form of spread cost. This cost is counted with multiple additional costs like storage cost and insurance cost. The spread cost generally ranges between 3% and 6%. If you plan to hold the virtual gold for less than 3 years, you will be charged with Short Term Capital Gain (STCG) tax. When you hold the gold longer than 3 years, you will be charged with Long Term Capital Gain (LTCG) tax at 20%. Delivery of Physical Gold: Digital gold is the best investment option only when you are looking for virtual gold. When you buy online gold and then go for its physical delivery you may be at a loss. There is a limit of up to what level of gold investment you can order for the physical delivery.While there are always 2 sides of a coin. It solely depends on how you plan your investment in digital gold and get benefited. <a target="_blank" rel="noopener noreferrer" href="https://www.spare8.com/buy-digital-gold">Buy digital gold</a> on Spare8 now and see your money grow in no time!

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Things to Know Before Investing in Digital Gold

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