Why Millennials Are Choosing Digital Gold Over Jewellery

Gold has always been a precious asset for Indians, both culturally and economically. Today, the gold rate is not just a statistic for the older generation; it is a figure that millennials are keeping a keen eye on as well. However, our young population is not rushing to the goldsmiths. Instead, they are choosing to invest in digital gold. Let’s explore why.

The Shift from Physical Gold to Digital Gold

While the previous generation held gold in the form of jewellery, coins, or bullion, millennials are moving towards a more liquid form- digital gold. They are not interested in stashing away gold in lockers or safe boxes. They prefer to have it on their smartphones or computers, where it is easily accessible and can be transacted with a click.

There are several reasons behind this shift:

• Convenience: Buying digital gold is as easy as buying anything else online. You can do it from the comfort of your home or office, without having to visit a jeweller.
• Safety: With digital gold, there is no risk of theft or loss, which is a significant concern with physical gold.
• Purity Guarantee: Digital gold comes with a 99.9% purity guarantee, eliminating the need to worry about the quality of the gold.
• Fractional Ownership: One of the biggest advantages of digital gold is that you can buy it in fractions, which is not possible with physical gold. You can start investing with as low as one gram.

The Role of Fintech Companies

The emergence of fintech companies has played a vital role in the popularity of digital gold among millennials. Companies like Paytm, PhonePe, and others have made it extremely easy to invest in digital gold. These platforms offer a seamless buying and selling experience, backed by secure and transparent transactions.

Moreover, these platforms also provide the option to convert digital gold into physical gold, which further enhances their appeal.

The Impact of COVID-19

The COVID-19 pandemic has also played a role in the popularity of digital gold. With lockdowns and social distancing norms in place, many people have turned to online platforms for their investment needs. Digital gold, with its ease of purchase and safety, has emerged as a preferred choice.

Additionally, the pandemic has underlined the importance of having a diversified investment portfolio. Gold, being a safe haven asset, has seen increased demand from millennials looking to hedge their risks.

The Future of Digital Gold

The future of digital gold in India looks promising. With increasing internet penetration and smartphone usage, more and more millennials are expected to invest in digital gold. As per a report by the World Gold Council, digital gold can potentially mobilise $1 trillion of incremental growth for the gold market in India over the next decade.

However, it’s important to remember that like any other investment, digital gold also comes with its risks. It is not regulated by any financial authority in India, which leaves the investors exposed to certain risks. Hence, it’s always advisable to do thorough research before investing.

In conclusion, digital gold offers a convenient and safe way for millennials to invest in gold. With its numerous benefits and the backing of fintech companies, it is becoming a preferred choice for the young population. However, like any other investment, it is crucial to understand the risks and do thorough research before investing.

Before you make any investment decision, check live 22K & 24K prices to get the latest gold rates. Remember, this information is purely for informational purposes, and should not be considered as financial advice. Always consult with a financial advisor before making any investment.