Is Purchasing Gold via PhonePe a Wise Decision?
The digital era has brought a plethora of financial transactions into our fingertips, including the ability to buy and sell gold through apps like PhonePe. However, as many users share their experiences, the question arises: is this a wise investment choice?
Unfavorable Trends and Cautionary Tales
As consumers, it's vital to scrutinize every transaction and understand the costs involved, often beyond the nominal price of the gold. In a recent incident, a user noticed a stark difference in the price of 1 gram of gold purchased on February 16th, priced at 5311 rs, to the price on October 13th, which stood at 5073 rs. Even the supposed '63 rs increase' becomes questionable when we factor in the discounts and pricing fluctuations regularly seen in the gold market.
This story is not unique. Another user faced a similar predicament. They bought 1 gram of gold and spent around Rs 6000. The delivery charges, a non-negligible Rs 500, were charged directly from their PhonePe account. More frustratingly, the delivery man refused to deliver the item, claiming the user refused the delivery when, in fact, the delivery man had already pocketed the delivery charges. This experience highlights the potential for consumer deception and undue financial burden.
Potential Scams and Losses
The warning signs are evident when considering a gold investment through PhonePe. The returns on such an investment are dubious at best, posing a significant risk to your hard-earned funds. Investing through UPI apps, including PhonePe, carries hidden fees and charges, often adding a 3% GST which significantly impacts your final return. If you plan to sell the gold quickly, aiming for a profit within a day, you are essentially setting yourself up for disappointment. Such high expectations are unrealistic and often lead to financial loss.
To further illustrate, let's say you buy gold at a rate of Rs 5000 per gram. If you plan to sell it a few days later, the market rates might drop to Rs 4678 per gram. In such a scenario, you lose a substantial amount of money, serving as a stark lesson in the volatility of gold prices and the risks associated with short-term trading.
Avoiding Scams and Finding Alternatives
It is strongly advised to avoid buying gold from UPI apps, including, but not limited to, PhonePe, Amazon Pay, and Paytm. These platforms are not designed for gold trading and often come with hidden fees that can quickly erode your potential profits. Instead, consider purchasing gold via traditional channels where you have more control over the transaction and a better understanding of the true cost.
For those interested in gold trading, consider utilizing cashback and referral amounts from UPI apps. The 150 cashback on PhonePe can be invested in a gold vault, enabling you to sell at a minimum of 1393 GSt. Similarly, Amazon Pay offers a 75 cashback which can be sold at a rate of 70 rs per gram. These methods provide a safer and more transparent way to engage in gold trading.
Conclusion
It's crucial to approach gold investments with caution, especially when utilizing technology-based platforms like PhonePe. While these apps offer convenience, they often come with lured-in discounts and hidden costs. By staying informed and choosing the right investment channels, you can make more informed and profitable decisions. Remember, it's always wise to research thoroughly before investing.