I am no expert on this but digital gold is mostly scam. And everyone should read the T&C to understand what they are getting into. Here's what safegold.com has to say:
"The gold purchased on behalf of the customer shall be stored with a reputed custodian on a consolidated basis i.e. daily purchase across all the customers. An independent auditor/ trustee will confirm the balances with the custodian each quarter and reconcile the amounts with customer balances."
Looking at the stamps on the site. Two companies are mentioned - Brinks and IDBI Trustee. A quick google search turns up that though BRINKS has a custodianship branch, it doesn't have related service in India. Though it says they have precious metal services:
https://www.brinks.com/en/public/brinks-india/precious-metal
So, I have no idea what BRINKS' relationship is with this company. Are they exporting gold for the company? Are they holding it? And mind you, there are tons of stories about mismanagement by BRINKS employees.
Additionally, are they willing to share the signed auditor report showing that balances have been confirmed? Because this is not exactly a financial product (again says on their FAQ - SafeGold is neither a financial product nor a deposit), they can't really be forced to reveal anything. No SEBI no RBI no one to save, IF things go wrong.
Now given this kind of setup I fully expect them to be cheaper than Paytm. Safegold is a relatively unknown entity while Paytm is known. So, that should lead to cheaper/discounted price of gold on safegold. (Edited to clarify) Cheaper gold on safegold is not really a good thing.
But does that mean Paytm is any where safer? Well, that is another story for another time.
In my opinion, you are better off investing in some MF. In case you need safety try some debt fund, though last I looked most of them sucked.
"The gold purchased on behalf of the customer shall be stored with a reputed custodian on a consolidated basis i.e. daily purchase across all the customers. An independent auditor/ trustee will confirm the balances with the custodian each quarter and reconcile the amounts with customer balances."
Looking at the stamps on the site. Two companies are mentioned - Brinks and IDBI Trustee. A quick google search turns up that though BRINKS has a custodianship branch, it doesn't have related service in India. Though it says they have precious metal services:
https://www.brinks.com/en/public/brinks-india/precious-metal
So, I have no idea what BRINKS' relationship is with this company. Are they exporting gold for the company? Are they holding it? And mind you, there are tons of stories about mismanagement by BRINKS employees.
Additionally, are they willing to share the signed auditor report showing that balances have been confirmed? Because this is not exactly a financial product (again says on their FAQ - SafeGold is neither a financial product nor a deposit), they can't really be forced to reveal anything. No SEBI no RBI no one to save, IF things go wrong.
Now given this kind of setup I fully expect them to be cheaper than Paytm. Safegold is a relatively unknown entity while Paytm is known. So, that should lead to cheaper/discounted price of gold on safegold. (Edited to clarify) Cheaper gold on safegold is not really a good thing.
But does that mean Paytm is any where safer? Well, that is another story for another time.
In my opinion, you are better off investing in some MF. In case you need safety try some debt fund, though last I looked most of them sucked.
Last edited: