Amazon Launches Online Gold Buying Feature ‘Gold Vault’

Amazon has launched a virtual gold buying and selling option called the ‘Gold Vault’. This would be a threat for Paytm, PhonePe, Mobikwik, ET Money, and Google Pay who deal with digital gold services.  As per the service, gold can now be purchased in a number of transactions in any denomination and can be accumulated for, over a longer period of time. Every purchase made by the buyer is placed in a secure vault which is backed by the government and is regulated by the security trustee.

Buyers can now buy gold as low as Rs 1 or 2 gm  and most importantly the EMI option is not available for buying gold since the regulations restrict for the same. The value with which the gold is purchased can be redeemed at any time in the form of cash or into the respective bank account.

Amazon for this has joined hands with Safegold (Digital Gold India Pvt Limited) as their partner-seller. Safegold which is owned by Invent Advisors Private Limited (Invent) is an institutionally backed company. The World Gold Council (India) Private Limited, as well as various other investor funds, are the holder of minority stakes in the company.

This has been the second major launch by Amazon in India this week and is the third in 2020. Last week, Jeff Bezos stepped into E-pharmacy with the launch of Amazon Pharmacy and also started online food ordering services from May.

Currently, the digital gold buying facility will face competition from PhonePe, GooglePay, Paytm, and ET Money. Paytm Gold, who is the leaders in the digital gold market with a 70% share,  and with more than 30 million customers, has done a transaction of over 4.2 tons of gold till the month of October 2019.