<h1>Top 3 Pros and Cons of Investing in Digital Gold</h1><div>With any product or service comes its advantages as well as disadvantages. Similarly with <a href="https://www.spare8.com/buy-digital-gold" rel="noopener noreferrer" target="_blank">investing in digital gold</a>, along with the pros we have the cons as well. Digital gold as we know is a virtual method of investing and selling the virtual gold or yellow metal without having the need of physically owning a gold. But, when we invest in virtual gold, there are certain things we tend to get assurity of before buying it.</div><div><br></div><div>Youngsters are the prime investors in digital gold, while the elderlies are still opting for the physical gold investment. This is for a reason. Let us take you through the top advantages and disadvantages of investing in digital gold:</div><div>
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      </div><h2>Advantages of Digital Gold</h2><div><strong>Doorstep Delivery</strong> — Investing in digital gold on Spare8 provides the option for doorstep delivery of physical gold when an investor chooses to redeem their investment for gold instead of cash. This offers a sense of security, tangibility, and convenience for investors who prefer physical gold over digital gold.</div><div><br></div><div><strong>No Defined Cost</strong> — Spare8 offers a unique advantage by not having any defined minimum or maximum capping for investment in gold. Investors can start investing with as little as one rupee and can continue investing as much as they desire. This approach benefits all investors and also helps to build trust in the platform.</div><div><br></div><div><strong>Create Unintentional Investing Habit</strong> — Spare8 welcomes individuals who are interested in investing but may not have the habit of doing so. By automating savings, the platform removes the burden of manual savings and helps in building an investing habit over time. Spare8's automated savings system allows individuals to invest regularly, ensuring that they are on the right track to achieve their financial goals.</div><h2>Disadvantages of Digital Gold</h2><div>
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      </div><ol><li><strong>Extra Tax</strong> — 3% GST is now applicable when buying digital gold. This is done because when you purchase digital gold you are actually owning the physical yellow metal which is kept stored for you in secured vaults.</li><li><strong>Spread Cost</strong> — This includes handling, transaction, and storage charges which need to be paid while buying digital gold that amounts to around 2–3%. The spread cost is applicable only when purchasing the virtual gold and not when selling it. The selling percentage depends completely on the seller you wish to sell the gold to.</li><li> Also, if virtual gold is sold before three years, then it is considered as short-term capital gain and is taxed according to the current income tax slab. And, if the digital gold is sold after three years, it is taken as long-term capital gain and you will have to pay 20% tax along with 4% CESS with indexation.</li><li><strong>Signing Agreements</strong> — Many brands want the investors to sign bonds of a certain time period. Once that time period is over, it is mandatory for the investor to sell the digital gold he has invested in or convert it into physical gold. If this is not done on time, then the company has the flexibility to deactivate the account of the investor, thus, leading to obstruction of the virtual gold investment under his name.</li></ol><div><br></div><div>When you are investing on Spare8 you are investing in a brand forever. It keeps you away from several <a href="https://www.goodreturns.in/classroom/what-are-the-4-major-disadvantages-of-digital-gold-investment-1226583.html" rel="noopener noreferrer" target="_blank">disadvantages of digital gold</a> that might sabotage your investment. Also, there is no defined cost for your investment with Spare8. We do not have a minimum or maximum slab in terms of your investment. It gives you the flexibility of starting your investment with just one rupee.</div><div>Additionally, there is also no bond of keeping your investment for a certain amount of time. Spare8 doesn’t believe in any lock-in period. You can invest today and take back your investment in any form the next day. Its user-friendly platform, investing in digital gold through Spare8 is easy and hassle-free, making it an excellent investment option for anyone looking to invest in gold. With Spare8 at your disposal there are more benefits of digital gold than demerits. Wait no more and start your digital investment in gold now!</div><div><br></div>

With any product or service comes its advantages as well as disadvantages. Similarly with investing in digital gold, along with the pros we have the cons as well

Top 3 Pros and Cons of Investing in Digital Gold

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