New Delhi: Investors can buy digital gold in place of bullions and get rid of all the hassles involved in purchase of the yellow metal bars. According to rules and regulations of the capital market regulator Securities and Exchange Board of India (Sebi) regarding trade of digital gold, currently, people can buy the same equivalent to 1 gm, 10 gm and 100 gm of bullions. These digital golds will be available of 999 and 995 purity.

How To Buy Digital Gold?

 When people would buy digital gold its Electronic Gold Receipt (EGR) will be created. The digital version can be traded as securities just like shares of a company. One can trade these securities on  platform of a stock market broker. After one has purchased the gold securities, these will be credited to his demat account just like it happens in case of shares of listed companies.

Currently, not too many brokerage firms extend the facility of trading digital versions of the yellow metal. One woud have to chose whether the broker with which one trades shares allow digital gold trading or not!

Such securities are listed on the Bombay Stock Excange (BSE). Once the EGRs are traded, equivalent grams of  physical gold will be bought on investors’ behalf and kept at Sebi assigned vaults. These are managed by agencies which work under the supervision of the market watchdog.

Investors can convert the EGRs with bullions kept against their name. The physical bars of the yellow metal will be  delivered directly to their home.

Prices of the precious metal have been on upward trajectory ever since the Covid-19 pandemic had taken the world under its grip. Gold prices previously recorded all time high level of Rs 78,300 per 10 gm few days ago in New Delhi. Due to the ongoing festive season, people in India consider it auspicious to buy the precious metal. But most people buy jewellery items or bars. For a change, India can try investing in digital gold this Diwali and live hassle free!