Is a solution in sight? Of course, gold has been considered a reliable option for several decades now. In fact, it is not just physical gold that is in demand; Digital gold is becoming increasingly popular, both for its portability and affordability. Moreover, with the digital revolution sweeping India and several market players, such as Airtel Payments Bank, offering gold digitally, it is the go-to investment option today!
Before we focus on the benefits of digital goldlet’s start by understanding how gold has historically performed during periods of high inflation.
Can gold hedge inflation risk?
We are already aware that investing poses certain challenges, one of which is inflation. In such cases, if an investment does not beat inflation, it can be worrying. When it comes to gold, there is enough evidence to validate that it has performed well around the world, even during inflationary spikes.
According to an article in the International Journal of Research in Management and Technology, in 1946, 1974, 1975, 1979, and 1980, when inflation was skyrocketing in the United States, the average real return on stocks was -12.33 %; gold stood at 130.4%. Back home, from 2018 to 2020, Nifty50 was at the center of extreme volatility and recorded a CAGR of 10%, while gold had a CAGR of 19% over the same period.
Does this mean that gold serves as a hedge against inflation? The answer is yes. According to the World Gold Council’s Indian Gold Market Report, for every 1% increase in inflation, demand for gold in India increases by 2.6. It is therefore essential to diversify your investment portfolio and have gold in the mix at 10-20%.
There is also more research that shows that over the past three decades gold has been found to have an annualized return of 10%, while over the past decade gold’s annualized return was 11%. Overall, gold not only serves as a hedge against inflation, but is also a good long-term investment option.
Is digital gold a lucrative option?
There’s been a lot of buzz around digital gold, but is it a good idea to invest in this channel? The answer is yes. The good news is that you can purchase this asset from the comfort of your home and it is stored in seller-insured vaults. An individual can easily engage in buying or selling Hallmark 24k gold for as little as Re 1.
Is it safe? Platforms like SafeGold which have partnered with Airtel Payments Bank helping customers buy, sell and receive gold anytime at affordable prices without any hassle. What else, digital gold is much more convenient and functional because, unlike physical gold, you don’t have to incur manufacturing costs. Also, storing gold at home is a high risk option!
In a nutshell, convenience, authenticity, and liquidity are some of the top reasons customers choose to invest in digital gold. Also, digital gold can be used as collateral for online loans.
DigiGold: The option to consider
Now that we have understood the benefits of investing in digital gold, the big question is where to buy it safely? Airtel Payments Bank is here to help you. When you become a member of the bank, you can access the 99.5% pure 24k gold offered by SafeGold, with a full storage facility in the Brinks Vault. In addition, you can buy gold at your convenience at an affordable price of Re 1. Finally, you can buy, sell or receive gold at any time at internationally competitive rates. If it’s a festive season or a special occasion, or a milestone, you can gift digital gold to your loved ones and make their special day even more special.
How to buy DigiGold with Airtel Payments Bank
– Open the Airtel Thanks app
– Go to the BANK section
– Tap the DigiGold icon
– Tap the BUY GOLD icon
– Select the amount you need in grams or enter the amount
– Enter your PIN to complete the transaction, and it’s done
Yes, it’s as simple as that! So don’t wait any longer and invest in DigiGold with Airtel Payments Bank today!
Disclaimer: This article was created on behalf of Airtel by HTBS.