Paytm in partnered with MMTC-PAMP has launched the ‘Digital Gold’ management system that would allow consumers to trade gold through the electronic platforms. Through the Paytm mobile wallets, the clients will be permitted to buy 24K 999.9 pure gold online and reserve it in the MMTC_PAMP’s safe system for free. The consumers can also appeal for their gold products to be delivered directly into their homes through forms of minted coins or resell them back to the MMTC-PAMP system.
In the past, Indians have traditionally traded gold at very high and rigid denominations with no clear information on the market prices. The partnership between the two companies will help resolve current challenges that the gold market faces such as the gold purity, safety issues, and storage charges. The affiliation will also make sure that the gold investors are accessible to high-quality and affordable gold products.
Since 2000, the Gold prices have been appealing to many investors who want to make the ends meet due to the persistent global economic problems. But for the last 13 years, the gold business has declined drastically with about 32% down from its high hit that was there in the last five years.
The gold fares in the second half of last year performed poorly with only 8% gain in the prices. The growth in the volume was even worse with only 2% growth rate. The jewelry demand from the two prime consumer markets that is China and India showed depressing results as there was a drastic decline in the demand from the Central banks. In India, the overall consumer demand went down to about 22%, which was the lowest record in the decade.
India and China markets contribute to about 50% of the gold demand in the whole world. With the continuous reduction of gold demand in these markets would likely affect the global prices. However, with the increasing challenges in oil prices and the geopolitical tensions around the world, gold investors should take precautions when making decisions to venture into this uncertain business deals.
