Physical Gold Vs Digital Gold – Which is Better?
Everything today is switching to the online model, from working from home, shopping from home, learning from home, nearly everything is transitioning. Going online is the new normal, and everything is lining up itself to this. Even investments today are regulated digitally via Demat accounts; the entire investment process is now online. People are now buying gold digitally. Are you still seeing a local jeweler for these purchases about gold investments??
Gold is the most preferred investment option for Indians; it is consumed in every form like jewelry, coins, biscuits. Moreover, every special occasion in India is celebrated with buying gold. However, earlier, the only method to get this precious metal was by buying it in its physical form. This made the investor helpless to theft and storage problems, restricting their gold buying behavior. But this is a matter of the past now. Today gold investments are available digitally.
With the gaining popularity of digital gold in India. This article covers digital gold vs. physical gold in detail.
Physical Gold Vs Digital Gold – Which is Better?
While buying gold in physical form, you pay additional making charges. This lies between 5% to 20% of the value of gold. Also, imagine losing your gold asset!
On the other hand, digital gold requires no making costs. This brings down the total price of your investment.
Once you have purchased physical gold, you must keep it away securely. Unfortunately, many individuals take up lockers for this purpose, which is an additional cost to the buyer.?
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Digital gold once again requires zero storage cost. You can hold it in your digitally.
The genuineness of physical gold is usually suspicious, depending on the authenticity of the selling jeweler.?
On the other hand, Digital gold eradicates these worries of genuineness. The user gets certified 24k gold of 99.99% purity.
While selling your physical gold involves authenticity checks, most jewelers offer lower than market rates.??
Digital gold can be quickly sold online, 24/7 at market prices. This implies you not only buy trouble-free but can also sell without hassle.
Conclusion
Both digital gold and physical gold have advantages and disadvantages. Yet, the option of investment relies on the investor. For instance, if the only purpose of buying gold is an investment, one can invest in digital gold rather than physical gold. The amount of gold Indians wishes to purchase often outweighs their carry. Investing in digital gold can offer them a secure and suitable medium to invest in a constantly appreciating asset that comes with 100% liquidity zero risk.