Why Should You Buy Gold ?

Buying gold has been prevalent in our culture for many years. Not only it can be used for making jewellery but gold is a great investment option as well.

During inflation when investors fear that their stocks will underperform, gold is one of the few financial instruments that perform well. The precious yellow metal also gives good returns during economic crises, geopolitical tensions and market volatility.

Even during the COVID-19 pandemic when the stock market was crashing the prices of gold were increasing day by day.

Recently, in March when the war between Russia and Ukraine intensified the prices of gold were up by around Rs 1000/10 grams.

Gold also possesses a high level of liquidity which means you can easily buy and sell. It also works as an effective portfolio diversifier. At the same time investing in gold doesn't require a high level of knowledge, so anyone can invest at any time. In fact, you can do Daily Savings in Gold with Jar App, because apart from buying physical gold, people have started investing in digital gold.

Digital gold is an innovative method of buying gold virtually. Basically, for every gram of gold you buy, the seller stores 24K physical gold in secured vaults under your name.

In India only 3 companies have the right to sell digital gold:

MMTC PAMP
Augmont Goldtech
Digital Gold India (SafeGold)

Digital gold has a lot of advantages over physical gold. We often see impurities in physical gold but digital gold guarantees you 99.99% purity.

Secondly, you need to invest a lot of lump sum money while buying physical gold. Although in digital gold you can start investing with just 1 rupee.

You also don't have to pay any locker fees or worry about the safety of the gold.

Even if you lose your mobile phone or even the app through which you are investing your digital gold will not disappear. This is because just like stocks digital gold is registered under your name and stored securely in vaults.

You can sell this gold anytime you want at live market rates, in either rupees or grams.

You can also convert it into physical gold in the form of gold coins or ornaments and get it delivered to your home. Although you do need to pay the making charges.

In some jewellery stores, you can even exchange digital gold for jewellery. You can also gift your friends and family digital gold and help them create wealth.

Since you are investing in 24K gold you can even use it as collateral for loans. This reduces the chance of your loan rejection.

Although digital gold has its own disadvantages as well. The major con of digital gold is that it is not governed by SBI or SEBI. While buying digital gold you need to pay a 3% GST. You also don't receive any interest on your investment.

But, as you can see the pros of investing in digital gold are much more than the cons.

Now, there are various apps that allow you to invest in digital gold without any complications. One of those is Jar, a Made in India app which allows you to invest in digital gold without any complications.

The app is powered by SafeGold and the gold you buy is backed by the RBI-regulated trustee—IDBI.

Jar app links with your UPI account like GPAY and Paytm and invests spare change from your online transactions into digital gold. The app uses the SMS to detect each spend of yours and rounds it up to the nearest 10.

For example, if you buy earphones for Rs 875 the app will round up to the nearest 10 i.e. Rs 880 and invest the difference (Rs 5) in the digital gold from your bank account attached to your UPI Id.

You can also round off your purchases to the nearest 5. For example, if you buy a product for Rs 572 the app will round it up to Rs 575 and invest the difference (Rs 3) in digital gold.

Using Jar App, you can pause, re-start or withdraw funds or gold anytime you want. On buying gold for Rs 500 and above you get 2% additional gold for free. If you buy gold for Rs 5000 and above you get 3% additional gold for free.