Investing in digital gold is one way to buy gold online, without having to store it physically. You can purchase digital gold online, and it is stored in highly secure vaults on your behalf. Once you've purchased digital gold, you can either sell it or take physical delivery of the same.

You need to open a demat account S & P Financial Services before you can actually buy, sell, and store digital gold online. Once you activate your demat account, you can buy, sell, and receive your gold.

Buying gold online in India requires you to first open an account via S & P Financial Services. Once you've opened your account, log in with the credentials given to you and place a buy order by specifying either the quantity you want to buy or the amount you want to invest.

Physical gold has the disadvantage of having to be stored safely. Otherwise, it might wind up being stolen or misplaced. However, digital gold does not have this problem. By purchasing digital gold, an equivalent amount of physical gold is stored by the seller on your behalf in highly secure vaults, eliminating risk altogether. You may then sell the gold online at a later date or have it delivered to you.

You get to enjoy these benefits of digital gold by investing in it:
1. Creates wealth over the long-term
2. Counters inflation effectively
3. Very easy to liquidate
4. You can take physical delivery of the asset
5. Can be bought for as low as Rs. 1,000

There is no need to worry about having to trade gold online in India since online gold trading is highly secure and regulated by the government. For example, ME Gold is backed by MMTC PAMP, an Indian pioneer in the emerging field of digital gold , thereby ensuring maximum safety and security.

In order to leverage the capital appreciation process of gold, gold ETFs are a good choice. Or if you wish to participate in the wealth creation process of gold as well as earn a steady rate of interest, sovereign gold bonds are the right choice. And finally, if you're interested in physical gold and plan on taking physical delivery at some point in the future, without having to deal with the hassle of securely storing it in your house, then digital gold could be the one for you.

Taxes on capital gains, which is what you make when you buy and sell digital gold online, would apply to digital gold. Furthermore, long-term or short-term gains are determined by the holding period. Any profit you make from the subsequent sale of digital gold, if you hold it for less than 36 months, would be considered short-term capital gains. Your short-term capital gains are added to your total income and taxed at the appropriate income tax slab rate. Conversely, if you hold on to digital gold for over 36 months, it is long-term capital gain if you sell it later. The long-term capital gain tax rate for digital gold is currently 20%.