Digital gold emerges as convenient gifting option in wedding season

Pune: Digital gold has emerged as a popular gifting option, with the wedding season around the corner."Gold in all forms is welcomed by people. Five of us pooled in and bought 5 grams of digital gold for our friend at her wedding. It is extremely convenient to buy, and she can decide what she wants to do with it at a later stage," said Ruby Manek, a resident of Wanowrie.Digital gold refers to a digital investment platform that allows individuals to buy, sell, and hold gold electronically.Sneha Naik, who recently received digital gold as a wedding gift, plans to exchange it at a partner jeweller. "I am waiting for some good sales, and then I will exchange the digital gold for physical jewellery of my choice," she said. The price of gold has been hovering around Rs 77,000-78,000/10g rate. There was a slight decline in prices in mid-Novr."Overall, we have seen a huge increase in demand due to the price dipping from historic highs. Customers have chosen to lock in their gold purchase for the wedding season at the time of the dip, so they can decide on what coin or jewellery to gift later. Volumes have been 2.5-3X during the gold dip specifically," said Rhea Chaterji, head of consumer business, Safegold.Customers also find digital gold to be much easier for making smaller, instalment-based purchases towards expected gift expenditures. Platforms often include systematic investment plans (SIPs) for regular savings, price-locking features, and redemption in physical gold, catering to both investors and consumers looking for ornaments. For example, using a daily SIP of Rs 140 for a month, customers can purchase a 0.5 g coin for a wedding gift instead of a single large payout.The demand for digital gold and silver has seen significant growth on Augmont's platform. "Augmont facilitates systematic investment plans (SIPs) starting at Rs 500 per month, enabling smaller, consistent purchases over time. The ability to buy and redeem gold in flexible amounts makes it attractive for both small and substantial buyers," said Sachin Kothari, director at Augmont – Gold for All."The demand for digital gold has been exceptionally strong this season. Following the reduction in import duty, we've witnessed a significant surge in consumer interest, particularly during this festive and wedding season. The industry is observing a 20-25% year-on-year growth. Digital silver is also gaining popularity as a complementary gifting option, providing more variety for consumers," said Vikas Singh, managing director & CEO, MMTC-PAMP.Some consumers are also leasing out their digital gold to get additional yields. "I received some digital gold at my wedding last year. I decided to lease it out, and now I have received additional yields of 3-4%, which is over and above the gold price increase over the last ten months," said Ronak Chavan, a resident of Baner.
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