Why and how should you invest in gold?

2 MinsApr 05, 2023

Gold has been considered a valuable investment for centuries. With the rise of technology and digitalisation, it has become more accessible to investors. Typically, gold prices rise when equity prices decline. Therefore, it makes sense to invest some portion of your funds in gold. But make sure you invest for the long term. Let us see how you can gain from the benefits of investing in gold. 

Why and how should you invest in gold?

Why is investing in gold important?

Hedge against inflation: Inflation refers to a rise in the general price level of goods and services in an economy over a while. As prices increase, the purchasing power of money decreases. Investing in gold can provide a hedge against inflation as its value tends to rise as the cost of living increases.

Diversification of investment portfolios: Adding gold to your investment portfolio can diversify your investments and reduce the overall risk. This is because the price of gold tends to move independently of other assets such as stocks and bonds, providing a counterbalance to their ups and downs.

For example, let's say the stock market experiences a downturn, causing the value of stocks in your portfolio to decrease. If you have invested in gold, the value of your gold investment may not decrease at the same rate or may even increase, mitigating the overall impact of the market downturn on your portfolio.

The amount to invest in gold depends on your financial goals and risk tolerance. As a general rule, it’s recommended to allocate 5-10% of your portfolio to gold.

For example, if your portfolio is worth ₹10,00,000, a 5% allocation to gold would mean investing ₹50,000 in gold. This allocation allows you to take advantage of the potential benefits of investing in gold while limiting the potential impact on your portfolio if the price of gold decreases.

To gain from the benefits of investing in gold, choose a mode of investment that offers easy liquidity, transparency in pricing and safety of your asset. For this, Digital Gold is a suitable option. 

What is Digital Gold?

Digital gold is a type of investment that tracks the price of physical gold. Unlike physical gold, which is a tangible asset that you can hold in your hand, digital gold is a digital representation of the precious metal. 

Axis Bank has partnered with Safe Gold. The gold purchased electronically is physical gold. Axis Bank is the provider of the payment platform for purchase/sale of digital gold.

Also Read: [Digital Gold – a smart way to buy Gold]

Features of Digital Gold

  • Convenience: Digital gold can be easily bought and sold online, providing you the convenience of transacting from the comfort of your home. You can purchase digital gold instantly in just a few clicks using an online platform. You can buy it using your Axis Bank net banking account or mobile app.
  • Liquidity: Digital gold is highly liquid. It can be easily converted into cash when needed. For instance, if you need to withdraw funds, you can easily sell your digital gold and receive the cash in your bank account within a few hours.
  • Delivery and exchange: You can also opt for delivery of gold coins against the gold balance in your account. The physical gold can either be delivered to you or you can exchange it for physical gold at designated offline and online jewellery outlets. The minimum quantity for delivery is 0.5 gms. In addition, you can also take delivery of gold in denominations such as 1, 2, 5, 10 and 20 gms.
  • Option to purchase via SIP route: You can buy Digital Gold with a lump sum amount or with monthly with a fixed amount, i.e. Gold Systematic Investment Plans (SIP). This allows you to decide on a budget that fits your pocket.
  • Security: When you buy Digital Gold it is stored in secure and insured vaults, providing a safe investment option. For example, Axis Bank has partnered with a secured custodian to ensure secure storage facilities for your gold. As part of their duty, the secure storage provider takes out a comprehensive insurance policy, which includes the cover on your gold. Over and above that, there is insurance cover for the period where the gold is in transit, when the gold leaves the vault.
  • Transparency: The price of digital gold is transparent. You can check the real-time value of your investment by logging into your account via net banking or via your bank's mobile app. It will provide you with up-to-date information on your investment’s performance.


Investing in digital gold offers several advantages, including convenience, liquidity, security and growth potential. It allows you to diversify your portfolio, protect your wealth, and potentially grow it over time. Consider adding digital gold to your investment portfolio today and experience the benefits of this timeless asset.

If you are looking for a convenient and secure way to invest in digital gold, consider doing it thorough Axis Bank's Mobile app or Internet banking platform. Axis Bank provides a payment platform for its customers to buy and sell digital gold, with the security of having it stored in insured vaults. So, don't wait – start your digital gold investment journey with Axis Bank today! 

Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.