SGB Vs Digital Gold: If you buy jewelery to invest in gold, then this time invest in SGB or Digital Gold. These are better alternatives than physical gold and both have different benefits. Know about them here.
If you want to buy gold for investment, then you can invest in SGB i.e. Sovereign Gold Bond or Digital Gold. Investing in both has its advantages. But both of them have one thing in common and that is that you will not face any problem regarding the purity of gold. Also, in the long run, returns will also be available according to the price of gold. Know here what is the difference between SGB or Digital Gold and how you can invest in it-
Digital Gold
Digital gold is not kept with you physically but is kept in your digital wallet. Its price also increases with time. If needed, you can also sell this gold online. One can invest in it with just Re 1 also. In India MMTC-PAMP India Pvt. Ltd, Augmont Gold Ltd offers digital gold. Apart from this, you can also buy digital gold through popular apps like Google Pay and PhonePe.
Sovereign Gold Bond
Sovereign Gold Bond is a government bond. It is issued by RBI. There is very less scope for risk in investing in this. This bond is of 1 gram of gold, that is, the price of 1 gram of gold will be the price of the bond. Through Sovereign Gold Bond, you can invest in 99.9% pure gold of 24 carat. In this you get double profit. Firstly, at the time of maturity, the investor gets money as per the market rate and secondly, an annual interest of 2.5 percent is also offered to the subscribers. RBI releases it in different phases in a financial year. Meanwhile you can invest in SGB.
Digital Gold Vs Sovereign Gold Bond
- Sovereign Gold Bond has a lock-in period of 5 years. After completion of 5 years he can do pre-mature redemption. By the way, this gold bond matures in 8 years. There is no lock-in period in digital gold. Digital gold can be bought/sold online 24/7.
- There is also an option to convert digital gold into physical gold. But you do not get this option in Sovereign Gold Bond.
- In SGB you get the guarantee of RBI, whereas digital gold is not monitored by any regulator. However, digital gold is stored by the seller in insured and secured vaults. The customer does not have to pay any charge for this.
- If you want to invest money in Sovereign Gold Bond, then you will have to buy at least 1 gram of gold. Whereas digital gold can be purchased for just Re 1. This means you do not need a very large amount of money to invest.
- You can take loan against both digital gold and sovereign gold bonds.
- The price of sovereign gold is also the same as 24 carat gold. At the same time, the annual interest of 2.5 percent on this increases your profits. No such additional interest is available in digital gold.
