99.99% Pure Gold
₹ 0.00 / gram
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Gold is touching new highs in February due to tariff and trade war concerns, making a Digital Gold SIP a smart investment choice. This upward trend encourages investors to invest in gold online for portfolio protection and long-term growth.
Reduced income tax in the Indian Union Budget promises a liquidity boost in the coming Financial Year. This can increase gold purchase online, making digital gold investment more attractive.
With no new tranches of SGBs (Sovereign Gold Bonds) being issued by the Indian Government, buying digital gold in India online is set to become the preferred option for gold investors.
No mention of import duty changes for Precious Metals in the Budget speech by Finance Minister.
Gold is deeply ingrained in Indian traditions and customs. It is a staple in weddings, religious ceremonies, and festivals. For example, during a traditional Indian wedding, the bride is often adorned with gold jewelry from head to toe, symbolizing prosperity and wealth. Gold ornaments like necklaces, bangles, earrings, and rings are passed down as family heirlooms, connecting generations. Changes in the gold bullion price can significantly affect the affordability of these treasured pieces.
Gold's superior conductivity and resistance to tarnish make it indispensable in modern electronics. It is used in the manufacture of connectors, switches, and relays found in devices such as smartphones, computers, and televisions. For example, the tiny connectors inside your smartphone that ensure smooth functioning and quick data transfer are often coated with gold.
In dentistry, gold alloys are used for fillings, crowns, bridges, and orthodontic appliances due to their durability and biocompatibility. An example is a gold crown used to cap a damaged tooth, providing a durable and long-lasting solution. In medicine, gold isotopes are employed in certain diagnostic and therapeutic applications, such as in the treatment of cancer.
Gold is a cornerstone of investment portfolios due to its ability to preserve value. Central banks around the world, including the Reserve Bank of India, hold significant gold reserves as a safeguard against economic crises. Individuals also invest in gold bars, coins, and digital gold as a means of securing their wealth.
In Indian culture, gold symbolizes purity, prosperity, and good fortune. It is an integral part of rituals and ceremonies. For instance, during Diwali, the festival of lights, it is customary to buy gold as it is believed to bring wealth and prosperity in the coming year. In Northern India, Dhanteras which comes 1 or 2 days prior to Diwali OR Deepavali is when families and individuals buy Gold in the belief that Goddess Lakshmi would bless them with prosperity. Southern India observes Akshaya Tritiya as an auspicious day to purchase Gold for prosperity. Other than these auspicious days, on festivals such as Dussehra (Durga Puja), Ganesh Chathurthi (Vinayaka Chavithi), Janmashtami (Krishnashtami), Ramzan (Ramadaan), Christmas, Onam, Sankranthi (Pongal), Ugadi (Gudi Padwa) etc, Indians purchase Gold for the blessings of prosperity. Golden murtis or idols are a commonplace among Pooja rooms (prayer rooms) within Indian family homes.
For many Indian families, gold acts as a financial safety net. It is often accumulated over generations and can be liquidated in times of need. An example would be using gold as collateral to secure a loan during a financial crisis. It is believed that in general, women have an affinity towards Gold. There is a practice among some women to constantly convert their savings into Gold for economic security. They also keep buying Gold in small quantities with an aspiration to convert the same to Jewellery in future. It is a practice to gift the girl child with Gold at the time of marriage. Some parents keep buying Gold in small portions keeping this goal in view.
In Indian society, owning gold is a marker of social status and wealth. Gifting gold jewelry during weddings and other celebrations is a common practice, reflecting the giver's generosity and the recipient's importance. Many buyers monitor gold market rates to make informed decisions when purchasing gold for these special occasions.
The balance of supply and demand plays a critical role in determining gold prices.
At a global level, increased gold mining output can boost supply and potentially lower prices. Vice versa, if there are issues with gold mining industry, the supply goes down and hence Gold price would go up.
During global conflicts and crisis times such as COVID, wars between countries and other uncertainties at the global level, Central Banks of various countries start accumulating Gold. This shoots up the demand for Gold and Gold prices normally go up under such circumstances.
At a local level, during the wedding season in India, the demand for gold spikes, often leading to a rise in prices.
Gold is widely regarded as a hedge against inflation. During periods of high inflation, the purchasing power of currency declines, making gold an attractive investment. For instance, in times of economic instability, investors flock to gold to preserve their wealth, driving up its price.
Interest rates have an inverse relationship with gold prices. When central banks lower interest rates, the opportunity cost of holding gold decreases, making it more appealing. Institutional Investors balance their investment portfolios by reducing their holdings of Treasury Bonds and increasing their holdings of Gold in such scenarios. For example, during economic downturns, central banks may reduce interest rates to stimulate growth, which can lead to a rise in gold prices. On the contrary, when Central bank intervenes to curtail inflation by increasing interest rates, the yields of Treasury bonds go up making them more attractive to the institutional investors and gold prices go down as Institutional investors divert their investments in Gold to Treasury Bonds.
Gold prices are significantly influenced by the value of major currencies, particularly the US dollar. A weakening dollar makes gold cheaper for buyers using other currencies, increasing demand and driving up prices. Conversely, a strong dollar can lead to lower gold prices.
When a US Government or incoming President announces policies OR policy direction that has the potential to increase budget deficit, we normally see that in anticipation of a weakening dollar due to such direction, investment in Gold would go up effectively driving Gold prices up.
Political instability, such as elections, policy changes, or government unrest, can lead to economic uncertainty. During such times, investors often turn to gold as a safe-haven asset. For example, during the Brexit referendum, gold prices surged as investors sought refuge from market volatility.
Economic sanctions imposed on countries can disrupt global trade and economic stability, leading to increased demand for gold. For instance, sanctions on major economies can lead to a flight to safety, with investors buying gold to protect their assets.
Global conflicts, such as wars and territorial disputes, can cause significant fluctuations in gold prices. During such times, the demand for gold typically increases as it is perceived as a stable and secure investment. An example is the Gulf War, which saw a sharp rise in gold prices due to geopolitical tensions.
Increased government spending, especially in the form of fiscal stimulus, can lead to higher inflation. For example, large-scale infrastructure projects or social welfare programs can increase the money supply, driving up gold prices as a hedge against inflation.
Budget deficits can contribute to inflationary pressures, affecting gold prices. When a government spends more than it earns, it often finances the deficit by borrowing, which can lead to higher inflation and increased demand for gold. For instance, during periods of economic downturns, governments may run large deficits to stimulate growth, pushing up gold prices.
Changes in import duties and taxes on gold can directly influence its price in the domestic market. For example, a reduction in import duties on gold can make it cheaper for consumers, potentially boosting demand and raising prices. Conversely, higher taxes can suppress demand and lower prices. On 23rd July 2024, Indian Government had announced the reduction of Import Duty on Gold from 15% to 6%. This had led to an immediate reduction in Gold prices. Subsequently, the demand for Gold had gone up significantly in India.
Central banks' interest rate policies have a significant impact on gold prices. Lower interest rates reduce the opportunity cost of holding non-interest-bearing assets like gold, making it more attractive. For example, during the 2008 financial crisis, central banks around the world slashed interest rates, leading to a surge in gold prices. Infact, a ‘dovish stance’ by the US Fed has the effect of increased interest in Gold and thus increase in Gold prices. ‘Dovish stance’ is when the Central Bank announces its intention to reduce the interest rates over the upcoming cycles to boost the economy to improve job creation, GDP and Productivity. On the contrary, a ‘hawkish stance’, as in US Fed / Central Bank announcing its intentions to reduce interest rates to contain inflationary pressures on the economy, results in increased interest in interest bearing instruments thus diverting investments in gold to Treasury Bonds etc. In this hawkish scenario, price of Gold normally goes down making it attractive to household investors.
Quantitative easing (QE) is a monetary policy tool used by central banks to inject liquidity into the economy. By increasing the money supply, QE can lead to inflationary pressures, weaken the currency, driving up gold prices. For example, the US Federal Reserve's QE programs in the aftermath of the 2008 crisis led to a significant increase in gold prices.
Central banks hold foreign exchange reserves, including gold, to manage currency stability and protect against economic shocks. Changes in the composition of these reserves can impact gold prices. For instance, if central banks decide to increase their gold holdings, it can lead to higher demand and rising prices.
Placer mining is a method used to extract gold from alluvial deposits found in riverbeds, streams, and other sedimentary environments. This method involves using water to separate gold particles from other materials. An example of placer mining is panning, where miners use shallow pans to sift through sediment in search of gold flakes and nuggets.
Hard rock mining involves extracting gold from ore deposits found deep within the earth. This method requires the use of heavy machinery and explosives to break up the rock and access the gold-bearing ore. An example is underground mining, where tunnels are dug into the earth to reach the ore, which is then brought to the surface for processing.
Byproduct mining occurs when gold is extracted as a secondary product from mining other metals, such as copper or silver. For instance, in many copper mining operations, gold is recovered as a byproduct during the refining process. This method leverages existing mining infrastructure to maximize resource extraction.
Including gold in your investment portfolio provides diversification benefits. Its low correlation with other asset classes, such as stocks and bonds, helps reduce overall portfolio risk. For example, during periods of stock market volatility, gold prices often remain stable or even rise, providing a counterbalance to falling equity prices.
Gold acts as a stable store of value, especially during market downturns. By including gold in your portfolio, you can balance the volatility of equities and mutual funds. For instance, during the 2008 financial crisis, gold prices surged while stock markets plummeted, highlighting gold's role as a safe-haven asset.
Gold is often used as a hedge against economic uncertainty and inflation. It can protect your investments from the adverse effects of market fluctuations. For example, during periods of high inflation, the value of currency declines, but gold tends to retain its value, providing a safeguard for your assets.
Digital gold can be easily purchased online through platforms like eBullion. Investors can buy small quantities of gold with just a few clicks, making it accessible to everyone. For example, you can purchase digital gold using your smartphone from the comfort of your home, while also keeping an eye on the gold market value for informed buying decisions.
Digital gold eliminates the need for physical storage, reducing associated costs. The purchased gold is stored in secure vaults, ensuring its safety. For instance, by investing in digital gold, you avoid the expenses of renting a safe deposit box or installing a home safe.
Investing in digital gold offers enhanced security. The risk of theft or loss is minimized, and transactions are recorded digitally, providing transparency. For example, your digital gold holdings are stored in a secure online account, which you can monitor and manage at any time, eliminating the worry of physical loss.
Investing in digital gold is simple and convenient through online platforms like eBullion. Users can create an account, link their bank details, and start investing with ease. For instance, you can register on the eBullion platform, complete the KYC process, and begin purchasing digital gold within minutes.
Digital gold can be purchased in small denominations, making it affordable for a wide range of investors. This flexibility allows individuals to invest according to their financial capacity. For example, you can buy as little as 0.1 grams