Although the earnings of consumers in the Corona crisis may have decreased, their desire to buy gold is still intact. However, instead of going to the market to buy jewelry, he is now preferring to buy digital gold (e-gold) sitting at home. The demand for e-gold has increased by 50 percent since the launch of Corona. However, this has increased the crisis of bullion traders ie jewelers.
Experts say that the presence of well-known and trusted companies in digital gold sales and the convenience of buying gold at very low prices have increased the attraction of consumers towards digital gold. Digital Gold has three companies doing business in India. State-owned company MMTC and Switzerland-based company MKS PAMP are selling digital gold through their joint venture MMTC-PAMP.
At the same time, Avugmount Gold is also trying its hand in the growing market of e-gold. These three e-gold companies have tied up with many e-wallet companies in India, through which consumers can buy gold. It includes many names including Paytm, Google Pay, Kubera, PhonePe, and Amazon Pay.
Facility to buy gold at home
When you buy gold online, companies allow you to deliver gold at home. The quantity is fixed in it. Once that fixed amount of gold is in your account, you can ask for it at home. In return, companies charge additional fees. The gold you buy through e-gold, the companies keep it in their locker and also charge the buyer for the same. Gold purchased under e-gold can also be sold to the same company within a specified period. It only has to pay margin fees which range from two to three percent.
How safe e-gold
Investing in e-gold is protected to a large extent by the arrival of well-known companies. But experts say that in case of a cyberattack, there is a risk of loss of capital due to account hacking because the record is digital in it. At the same time, there is a possibility of cheating consumers by creating fake websites.
Right now the demand for jewelry has stopped
In the midst of the Corona crisis, jewelers have been hit twice as buyers move towards e-gold. Yogesh Singhal, general secretary of the Delhi Gold and Bullion Association, said that shops and showrooms remained closed for a long time due to the first corona. Now people sitting at home are buying digital gold. This led to a crisis of livelihood in front of bullion traders and lakhs of artisans associated with them. At the same time, Anuj Gupta, Deputy Vice President (Commodity and Currency), Angel Broking, says that the choice of investors regarding the purchase of gold has not changed but its manner has changed.
Specialty of e-gold
- Cheap and beneficial
- Many e-wallets including Paytm are offering to buy gold for Rs. 01
- 02 to 3% Fee Maintenance - Purchase and Sale of E-Gold
- 03% GST to be paid on e-gold purchases
- MMTC operating 8.6 crore e-gold digital accounts
How much tax on gold
- 03% gold is taxed as GST
- 05 GST as a tax on making a charge of 5% gold jewelry
- 20% LTCG Gold ETF attracts profits
- 2.5 percent interest is available on gold bonds, on which tax according to income tax category
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