Indian households currently hold more than 24,000 tonnes of gold worth $900 billion as per World Gold Council estimates.
Digital wallet player Paytm has launched ‘Digital Gold’ product where users can buy 24K 999.9 gold for denominations as low as Rs 1 which can be stored, traded and home delivered in the form of gold coins. The online player has partnered with MMTC-PAMP.
MMTC-PAMP is a joint-venture between Metals and Minerals Trading Corporation of India (MMTC) and PAMP SA of Switzerland set up in 2008 and recognized by the London Bullion Market Association.
With the current launch ahead of Akshaya Tritiya, the digital gold offer makes long-term investment in physical gold convenient for Indian consumers who usually purchase non-standard gold coins from jewellery stores or standard gold coins retailed by SBI and other outlets in denominations of 4 gram and above.
“Gold is the preferred form of investment for Indians, and we are making it easier for our users to invest in gold digitally. With this product, our customers can buy and sell international quality gold at market-linked prices instantly. The goal is to offer complete flexibility in deciding the amount they want to invest, and enable consumers to develop habit of saving regularly in digital gold for long-term wealth creation,” said Vijay Shekhar Sharma, CEO of Paytm.
The current service allows users to purchase gold online and store it in MMTC-PAMP’s vaults free of charge. They can also request for their gold to be delivered at their home in the form of minted coins or sell it back online instantly.
“As India's first and only internationally accredited gold and silver refinery, we are proud to be placing India in its deserved leadership position in the global bullion market,” said Mehdi Barkhordar, chairman of MMTC-PAMP India.
Indian households currently hold more than 24,000 tonnes of gold worth $900 billion as per World Gold Council estimates.