How to Buy Gold Online Using Demat Account? | Share India
Right Arrow

The precious metal known as gold exudes power. It stands for security in money as well as wealth and prosperity. While some people prefer to show off their wealth, others covertly amass it through a gold accumulation approach. Indians have a special affection for gold since it is a significant element of their social, cultural, and spiritual heritage.


It may be a good time for Indian households to invest in gold today and secure their future with a secure investment choice as gold continues to get attention globally and rises in price on a daily basis. Fortunately, investing in digital gold offers the average investor a terrific opportunity to accomplish just that today.


We'll provide you with the information you need to determine if you can invest in digital gold using your bank's Demat account, which you use to trade equities. We'll also discuss a gold accumulation plan and how to invest in gold through demat account.


How to buy Gold in Demat Account?


Digital gold can be invested in various methods, some of which have been listed here.


Exchange-Traded Funds (ETFs) for Gold 

With these investments, investors may invest without worrying about where to store their gold. Account holders can buy gold units to buy, keep, and sell using a Demat account. Because they are based on actual gold, gold ETFs operate similarly to mutual funds but provide their owners a higher level of service. Gold ETF investments are attractive since they not only accept small deposits but also offer tax advantages to their owners.


Electronic Gold (or E-Gold) 

Investors enjoy investing in electronic gold, often known as e-gold, in part because of how simple it is to do so. This investment, which is gold in a Demat form, necessitates that people open a unique Demat account that is dedicated solely to e-gold investments. With the help of this account, trading "Demat gold" is made simple. E-gold owners have the right to purchase and sell their gold whenever it is most convenient for them and at a price that corresponds to their preferences.


Gold Funds

Like gold ETFs, gold funds are investments that resemble mutual funds. The sale and purchase of these ho, ever, do not necessitate the use of a specialized Demat account. Having said that, they provide the same investors' characteristics as other gold investment programs do. Before investing their money in any of the aforementioned digital gold investments, investors and traders are urged to research each one thoroughly.


Can a Demat Account be used to invest in Digital Gold?


A Demat account is not required to invest in gold. You need to open a Demat account in order to trade gold ETFs. You cannot invest in digital gold through a Demat account, even if you have one, because you would have to pay brokerage fees. On the other hand, purchasing digital gold online is as easy as a few clicks, and there are no further costs until you sell it or withdraw real gold from your account.


What does "Digital Gold" really mean?

To put it another way, Digital gold is just in an electronic form. When you buy digital gold, you are buying actual gold without obtaining control of it. Each unit of digital gold that a consumer buys is backed by 24-karat gold that has a purity of 99.5%. The consumer's gold is safely stored in a vault and covered by insurance until he decides to redeem it and take physical possession of it. Additionally, the consumer has the choice to sell the gold to meet his financial needs.


Is Investing in Digital Gold a Wise Decision?

For some people, investing in digital gold can be a smart move, but it relies on a number of variables and your financial objectives. Here are some advantages of investing in digital gold: 


A Guarantee of Excellent Work

Unless you're an expert, it's tough to determine the authenticity of gold purchased from a neighborhood jewelry store. Except when purchasing gold ingots or coins, genuine 24-carat gold cannot be purchased from a jewelry store. The bulk of jewelry is composed of 22-carat gold, which has been infused with impurities to give it the desired form and pattern.


There are No Extra Costs

You risk losing a lot of money if you think gold jewelry is a secure investment. Both the cost of acquiring jewelry and the use of pricey stones are expenses. You'll receive a smaller return on your investment because not all of your money is put in gold. On the other hand, there are no additional costs, and the entire money is used to buy gold at the current market price in a digital gold investment or gold accumulation plan.


Safe Storage Facility

Providing secure gold storage is one of the main concerns for investors in real gold. Storage at home can be risky, and using a bank vault costs money and offers no assurance of secure storage or insurance coverage.


Investing in Gold is Simple

Today, investing in gold is not only safe but also rewarding. In the past year, gold prices have increased by 16.06 percent. In contrast to genuine gold, you don't need to spend a fortune to take advantage of this price rise. You may use a gold accumulation method even with very few investments. The best aspect is that purchasing digital gold doesn't require visiting a store, providing identification, or enduring difficult and time-consuming procedures.




An easy and accessible way for investors to purchase gold is through a demat account. Individuals may get exposure to gold without worrying about actual ownership, storage, or security by choosing gold mutual funds or exchange-traded funds (ETFs).


Frequently Asked Questions (FAQs)

No, a demat account is used mostly for keeping and trading electronic securities. It is not intended to be used to buy or store tangible goods like gold bars or coins.

Through the purchase of gold exchange-traded funds (ETFs) or gold mutual funds, you can invest in gold through a demat account. These financial products let you invest in gold without really owning any of it while keeping track of its price.

Investing in gold through a demat account might be considered secure with the right broker or financial institution.
Hidden Footer Popup