What can you get for a few rupees? Some sugar candies, perhaps. But do you know that you can also buy gold for a few rupees? Amazon Pay recently started allowing users to purchase digital gold on its platform. While existing players like Paytm, MobiKwik, and PhonePe allow you to buy gold for Rs 1, Amazon Pay has kept the minimum amount at Rs 5.
Digital gold is essentially an avenue for investing in physical gold. Says Terence Lucien, head of mutual funds and gold, PhonePe: “While the purchase is done digitally, our partners actually hold 24-carat pure physical gold for every purchase made by a customer.”
These platforms have made it easy for customers to start accumulating gold by investing small amounts. They also take care of purity-related concerns.
Says Kunal Bajaj, head of strategy & investor relations, MobiKwik: “Our app users can buy and sell 24-carat gold of 99.5 per cent purity for an amount as low as Rs 1. They also have the flexibility to buy any amount of gold in rupees or in grams. They can also sell it any time 24 hours after the purchase.”
One area of concern is that digital gold is not regulated. Says M Barve, founder, MB Wealth Financial Solutions: “There is no regulator for digital gold at present.”
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