What Is Digital Gold Leasing?
                     What Is Digital Gold Leasing?
INTRODUCTION
Online digital gold platform SafeGold has 
launched a service called Gains that 
customers can use to lease their digital gold 
and get some returns.
Source: economictimes.indiatimes.com
ADDITIONAL RETURNS 
One could make 4-5% additional returns on 
top of average gold appreciation which makes 
gold a 14-16% returns asset class putting it in 
the category of high-return investment 
options.
Source: mintgenie.livemint.com
Gold leasing
Gold leasing was a practice that existed in 
the offline market for a couple of years but 
was limited only to the ultra-rich who had a 
strong connection with the jeweller & 
possessed multiple kgs of gold that they could 
lease out.
Source: mintgenie.livemint.com
How does gold leasing work?
The way gold leasing works is, your gold 
(physical/digital gold) is leased out to large 
jewellers who in return give you a daily 
interest. 
The interest paid out is in the form of gold 
gms, which means your interest would also be 
growing as Gold prices go up & the interest is 
compounded every year.
Source: mintgenie.livemint.com
What is digital gold leasing?
According to SafeGold, "Gains is peer-to-peer 
lending where a customer can themselves 
choose the jeweller and tenure of the lease. 
The yield offered by the jeweller will be on 
the basis of the tenure chosen by the 
customer.
Source: economictimes.indiatimes.com
Credit Worthiness
The MSME jewellers mentioned on the 
website (of SafeGold) have been verified for 
creditworthiness and KYC-compliant."
Source: economictimes.indiatimes.com
Limitation
An individual can lease a minimum of 0.5 
grams and a maximum of 20 grams of digital 
gold under the scheme.
Source: economictimes.indiatimes.com
Yield
A customer can expect a yield of 3-6% per 
annum. The yield will be calculated on a 
daily basis and added to the customer's digital 
gold account on a monthly basis.
Source: economictimes.indiatimes.com
How it works?
The earned yield will be in the form of the 
gold. Hence, once the lease expires, the 
original gold leased and the yield earned in 
the form of gold will be added to the 
customer's account.
Source: economictimes.indiatimes.com
What is the risk involved?
Unregulated product: SafeGold says digital gold 
leasing is an unregulated product.
Liquidity risk: Once the gold is leased by the 
individual to a jeweller, she cannot sell it before the 
lease expires.
Risk of loss of capital: A customer can lose her leased 
digital gold in case the jeweller does not return it at 
the end of the tenure.
Source: economictimes.indiatimes.com