Alibaba-backed Paytm has partnered with gold refiner MMTC-PAMP to launch ‘Digital Gold’ that will allow customers to buy and sell gold through the electronic platform.Using their Paytm mobile wallets, consumers can purchase 24K 999.9 purity gold online and store it in MMTC—PAMP’s secure vaults free of charge. Investment as low as Re 1 is enough to buy the yellow metal.
Request for their gold to be delivered at their homes can be made in the form of minted coins or sell it back online to MMTC—PAMP. Customers can now buy and sell international quality gold at market-linked prices instantly for as low as ₹ 1 using their Paytm wallets, If the consumer wants to sell the gold, MMTC-PAMP will buy the gold back from them and the money will be transferred to the user’s bank account.
o India is the world’s largest consumer of gold. An estimated 24,000 tones worth $ 900 billion of gold is stocked in homes and bank lockers in India.
o Government is encouraging people to buy digital/ paper gold, instead of the physical form to curb large scale hoarding.
o It has also introduced a sovereign gold bond scheme that offers better returns and owners do not have to worry about security of the precious metal apart from other benefits.