Digital gold seems to be catching up. The year-on-year (YoY) demand for digital gold or participation has gone up by nearly 70 percent and companies like MMTC-PAMP, SafeGold, Dvara SmartGold are offering options for the investors to invest in digital gold that is backed by physical gold. One can buy digital gold through apps.
There is another trend that has been seen in the markets now, that is the jewellery companies are also venturing into this space. Titan, Senco Gold and Diamonds have ventured into it. Suvankar Sen, CEO & ED of Senco Gold & Diamonds, discussed this further.
“We are calling this as a phygital gold where there is a combination of digital and physical. What the customer needs to do is at the time of redemption, they will need to select how they would like to redeem, would they like to go to store to redeem it or would they like to do it on an online eCommerce platform that we have,” he said.
“The gold that they have accumulated over a period of time, they would be getting the value against the gold that they have as per the market price during the time of redemption and that value would be redeeming and being exchanged against the jewellery that they would be buying,” he added.
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The company’s objective is that more and more people should be able to buy gold as an asset, as an investment, and as savings for the future.
“We have kept it as minimum as Rs 250 because the ultimate objective we want to do is get the young generation acquainted with the process of having any form of investment or savings in the commodity of gold or gold-related products. This digital way of buying jewellery or gold would enable them to save over a period of time as and when they would be feeling convenience, 24X7 they can think of buying it and at a convenient time they can go to store or redeem it or sell it back,” he explained.
For the full interview, watch the accompanying video.