CRED has launched a shiny new feature—Digital Gold. Users can buy one-time or set up a SIP plan, and even convert it into 24K coins. Sounds tempting, right? But here’s the catch: you bleed money the moment you invest.
Here’s why wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital gold is more of a trap than an investment:
1. The 3% GST Black Hole
Every time you buy wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital gold, you’re slapped with 3% GST. That means on a ₹1 lakh investment, you lose ₹2912 instantly. Your returns need to climb just to break even.
2. Platforms Pocket Commissions
Don’t forget—these platforms aren’t offering wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital gold out of love. They earn commissions from every transaction, further eating into your returns.
3. You’re Paying for the Packaging, Not the Gold
Unlike physical gold you can hold, wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital gold is just an entry in a system. You’re paying extra for the “convenience” of buying it on an app, which adds zero real value to your wealth.
4. There Are Better Options—Gold ETFs & Mutual Funds
Want exposure to gold? Gold ETFs and mutual funds track gold prices without the hidden charges. They’re liquid, regulated, and far more cost-effective.
5. The Illusion of Flexibility
Sure, CRED says you can convert wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital gold into coins. But those coins come with minting and delivery charges. At the end of the day, you’re paying premium after premium for something you could’ve bought directly.
🔥 Bottom Line: gold has indeed outperformed many asset classes in recent years, but Digital gold is not the smart way to invest. With GST, commissions, and hidden costs, it’s a wealth trap disguised as convenience. If you want gold in your portfolio, stick to ETFs or gold mutual funds. Your money deserves better than vanishing into commissions and taxes.
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