Diwali is just around the corner and the celebrations have already started in the country. The festivities begin with the celebration of Dhanteras and it’s considered a good omen to purchase gold or silver on this day (November 13th). If you are planning to do so as well, buying gold online is a convenient option.
Some of the top digital payment platforms like Google Pay, Paytm and PhonePe now let users buy and sell gold on their apps. Since it is a precious metal, it’s natural to be sceptical as to whether buying gold online is safe. You might have questions like is it safe to buy gold on Google Pay or is buying gold on Paytm safe. Here’s a detailed guide to answer all your questions related to buying gold online this Dhanteras.
Where can you buy gold online?
You can buy gold online through mobile wallet platforms like Google Pay, PhonePe and Paytm. All these gold buying options are offered in association with either MMTC-PAMP or SafeGold or both. The former is a joint venture between government-owned Metals and Minerals Trading Corporation of India (MMTC) and Switzerland-based Produits Artistiques Métaux Précieux (PAMP SA). On the other hand, SafeGold is a digital platform that has partnered with various digital payment apps to let customers buy, sell or receive vaulted gold for as low as Re 1.
Is it safe to buy gold online?
Google Pay, Paytm and PhonePe are three of the largest mobile wallet solutions in India, which are already trusted by millions with their money. Their association with MMTC and PAMP SA further works in their favour. In fact, Paytm recently announced that it has seen twice as much growth in digital gold transactions during the last six months with over 75 million customers having transacted 5,000kg gold to date.
All three platforms assure that the gold purchased by customers is stored physically at an insured facility by the MMTC-PAMP. The association acts as a custodian of the purchased gold until the customer sells the gold or gets it delivered. Moreover, these platforms assure 24K gold with 99.99 percent purity. In a nutshell, buying gold online is pretty safe in terms of both security and quality of the gold being purchased.
What are the benefits of buying gold online?
There are several benefits of buying gold online compared to purchasing gold at a store. To start with, there is no storage cost or risk of theft or robbery when it comes to digital gold. Additionally, the purity and quality of the gold purchased online is assured by the online platforms. Other benefits include the ability to buy a small amount of gold, transparent pricing, buy at market price, and sell it back conveniently at the market price.
What are the disadvantages of buying gold online?
One of the biggest disadvantages of investing in digital gold is the maximum limit of Rs 2 lakhs for investment. However, this limit is increased if the customer completes KYC on the platform. Additionally, most platforms like Google Pay, Paytm, and PhonePe charge an additional fee over the price of the gold for delivery and making the coin/brick. Lastly, there is a restriction on how long the platform will store the gold, after which the customer is required to either take the delivery or sell.
How to buy and sell gold on Google Pay?
How to buy gold on Google Pay
- Open Google Pay app and scroll to the Business & Bills section
- Click on the ‘Gold Locker’
- On the next page, click on ‘Buy Gold’
- Enter the amount for gold you wish to purchase
- Make payment
How to sell gold on Google Pay
- Open Google Pay app and go to ‘Gold Locker’
- Tap on the ‘Sell’ button at the bottom
- Enter the quantity you want to sell and proceed
- The amount will then be credited to your bank account
In case you are wondering what is Gold Locker in Google Pay, it’s the section of the app where you can check your purchased gold and buy/sell gold further. A quick Google Pay Gold Locker review shows the amount of gold in the user’s account and all previous transactions done by the user. Additionally, there are options to buy, sell, deliver, and gift gold in Google Pay Gold Locker.
How to buy and sell gold on Paytm?
Paytm is currently running an offer for Dhanteras 2020, where users can get extra gold worth Rs 5,000 on their purchase above Rs 500. Users purchasing gold worth Rs 500 to Rs 1,099 will get an additional 1 percent of their purchase value. Similarly, those making a purchase between Rs 2,000 – Rs 1,00,000 and Rs 1,00,000 and above will get two and three percent of their purchase value additional for free. Those purchasing gold on Paytm need to use the promo code – GOLDDHAMAKA to avail the offer.
How to buy gold on Paytm
- Open Paytm app and click on ‘Show More’ on the home page
- On the next screen, select ‘Stocks & Wealth’
- Click on ‘Paytm Gold’
- You can select whether to purchase in amount or in grams
- Enter the desired amount
- Provide your name and area pin code for the invoice
- Proceed to make payment
How to sell gold on Paytm
- Open Paytm app and go to PayTM Gold section
- On the top, click on Locker
- You can sell gold, get delivery and gift gold on the next page
How to buy and sell gold on PhonePe?
How to buy gold on PhonePe
- Open PhonePe app and click on ‘Buy 24K Gold’ under Quick Links
- Select between MMTC-PAMP and Safegold on the next page
- Choose between amount or weight
- Enter the amount or weight of gold
- Proceed to payment
How to sell gold on PhonePe
- Open PhonePe app and click on ‘My Money’ at the bottom
- Under the ‘Investments’ section, click on ‘Gold’
- You will be able to see the amount of gold purchased
- Tap on more options
- Click on ‘Sell Gold’
- Proceed to enter the amount of gold you wish to sell
- The amount will be credited to your bank account