Digital Gold
Buying gold by value rather than by piece, held in a vault on your behalf and redeemable in coins or jewellery.
You buy fractions of a gram at the live rate. The provider stores the physical metal and you hold a claim on it.
It removes making charges and storage risk, and adds a spread between buying and selling price plus, usually, storage fees after a period.
It is distinct from sovereign gold bonds and gold ETFs, which are financial instruments rather than a claim on specific metal.
When you are buying
Useful for accumulating value, not for owning jewellery. Converting digital gold into a finished piece still attracts making charges and wastage.
Gold Savings Scheme
A monthly instalment plan run by a jeweller, redeemed against jewellery, often with a bonus instalment at the end.
Gold Rate
The day's price of gold per gram at a stated purity. The base every gold bill is built on.
Resale Value
What a piece fetches when sold on. For most jewellery it is the metal value, with the craftsmanship written off.
Buyback
What a jeweller will pay to take a piece back. Almost always based on metal content alone.
24 Karat Gold
Pure gold, 99.9% fine. Too soft for jewellery that gets worn, so it is bought as coins and bars.