I’m thinking of buying digital gold on PhonePe, but I’m worried about hidden fees. Apart from the gold price itself, what are all the extra charges I need to be aware of when I buy, sell, or take delivery?
There are no truly “hidden” charges when you buy or redeem digital gold on PhonePe, but there are several costs built into the product’s structure that are important to understand. These include the price spread between buying and selling, the included GST, and specific charges for physical delivery.
The Spread Between Buy and Sell Prices
My friend was looking at the PhonePe gold section and noticed that the ‘Buy Price’ was a bit higher than the ‘Sell Price’ shown at the same time. I explained that this difference, known as the spread, is the primary built-in cost. It covers the provider’s expenses for secure storage, insurance, and transaction processing. It’s not a hidden fee, but it means you will always sell your gold for a slightly lower rate than the current buying price.
The Tax Component: GST Included in the Purchase Price
I was guiding my aunt through her first digital gold purchase. When she saw the final price per gram on the screen, I pointed out that the 3% Goods and Services Tax (GST) is already included in that rate. So, while GST is a significant part of the cost, it is transparently factored into the live price you see, not added as a surprise charge at the end of the transaction.
The Charges for Redeeming Physical Gold Coins
My cousin decided to convert some of his digital gold into a physical coin to gift his sister. When he went through the redemption process in the app, he saw two additional charges. The first was a making or minting charge for the cost of fabricating the coin. The second was a delivery charge for securely shipping the insured package to his home. These charges are only applicable if and when you choose to take physical delivery.
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