How Can You Start Accumulating Gold For As Less As One Rupee?

Online retailers are offering customers the opportunity to buy really small portions of the precious metal for as less as Re 1. In a time where the attraction for gold is waning among Indians especially the younger population, jewellers are also adapting to newer was to make sales.

These new digital platforms are competing with traditional retail chains like Tanishq, Jos and Joy Alukkas or Kalyan Jewellers. Although a majority of the sales are still driven by traditional modes of buying, internet companies are looking to tap into the growing number of internet users.

A report released jointly by Bain & Co., Google and Omidyar Network in August said that over half a billion Indians would be coming online in the next wave of internet users and shoppers. The report further said that at present, only a little over one-third of India's current 390 million users are transacting online, which suggests that online retailers have a massive untapped opportunity.

If you are tech savvy and prefer faster ways to make small investments in gold using just your smartphone, here's all you need to know about purchasing gold online.

• Smartphone payment app makers are tied up with gold retailers to make purchases easy. You can opt for the payment platform of your choice. For example, Paytm is tied with MMTC-PAMP India Pvt. Ltd, a joint venture between MMTC Limited, a Govt. of India undertaking and PAMP Switzerland, a leading precious metal refining and fabricating company. PhonePe, on the other hand, is tied up with digital gold platform SafeGold.
• These schemes are also known as a "gold accumulation plans" (Paytm) where you can buy as much gold as you can, with the minimum purchase limit set at Re 1.
• You can get the physical delivery of gold (in coins) after you made payments enough for one gram and multiple of 1 gram from there on.
• It is ideal for those looking at periodic payment schemes to purchase gold for a future need like marriage.
• In case of physical delivery of gold, you will be charged with making charges based on weight and design of the coin.
• You can make the purchase at any time of the day and any day in the year, including public holidays.
• You can check the gold prices on the app on a real-time basis before making the purchase or sale.
• These apps also allow the sale of the metal at current prices. You can sell gold worth one rupee as well. Your bank account number and IFSC code will be asked to credit the amount to your account. You will be charged with a processing fee (IMPS fee) when the money is credited to your bank account.
• You can check the balance of your accumulation at all times using the app.
• You have to complete the KYC formalities including submitting your PAN details to start purchasing gold.

Things to note:

• Paytm is an e-wallet and payments bank account facility that will charge you a fee as less as Rs 10 for crediting the amount to your account.
• The purchases also attract GST on any platform that you choose.
• Paytm or PhonePe are mere platforms that allow you to make purchases. The gold will be purchased by the company they are tied up with (SafeGold in the case of PhonePe).
• These companies will keep the gold purchased by you in a safety vault and will be delivered to you only when you order for it (the order has to exceed the minimum purchase limit of 1 gram).
• Check if the app allows delivery to your location before you make a big purchase.
• Considering the making charges and processing fee, selling gold for as less as Re 1 will not be financially viable if the IMPS charge alone is Rs 10. Plan your sales accordingly.