Differences Between Digital Gold and Physical Gold

1
Differences Between Digital Gold and Physical Gold

• if your mind is made up to invest in gold, then
  why not learn about the two most common options
  available for gold investment digital and
  physical gold assets. Although they both are
  priced the same and have consistent growth over
  time, the difference lies in their insurance,
  storage, and usage. Ultimately, it affects the
  final selling price of the gold asset that you
  own.

2
Digital Gold vs Physical Gold

• When it comes to investment, gold is the safest
  bet you can play. Not only does it help in
  keeping the risks low, but it promises long-term
  gains without any doubts. But the topic of
  investment in itself is risky. Hence, before
  going for gold investment, we would suggest that
  you read and learn about it thoroughly.
• Now, if your mind is made up to invest in gold,
  then why not learn about the two most common
  options available for gold investment digital
  and physical gold assets. Although they both are
  priced the same and have consistent growth over
  time, the difference lies in their insurance,
  storage, and usage. Ultimately, it affects the
  final selling price of the gold asset that you
  own.
• As we move forward in this post, we will define
  digital as well as physical gold for you. We will
  also dive a little deeper into what benefits do
  they bring to you as an investor when you put
  your money in any one of these options.

3
What is Digital Gold?

• Digital gold is exactly what it sounds like it
  is an alternative to physical gold jewellery
  items, coins, and bars and could be bought online
  on several sites and mobile apps. What makes
  digital gold buy different is the karat options
  available for the buyers you can purchase
  24karat digital gold, which will be added to your
  online wallet. Also, there are no making or
  wastage charges in buying or selling digital gold
  as no amount of gold is used or wasted in making
  it.
• Some apps also allow buyers the option to convert
  their digital gold buy into a physical asset, but
  that conversion usually takes some time and is
  dependent upon the policies laid out by the
  seller.

4
Benefits of Investing in Digital Gold

• It is a good first investment as digital gold
  does not have a set limit of investment. You can
  invest any minimum amount that works for you.
• Digital gold is the purest form of gold
  investment you will ever make. The quality will
  stay the best because of 24karat gold usage.
• You can convert digital gold into coins, bars,
  and jewellery items as per your want.
• It is fairly easy to redeem the money back after
  selling your gold, similar to transferring money
  from one bank account to another.
• Digital gold is bought and sold at the standard
  gold rate per grams without any making or wastage
  charges involved.

5
What is Physical Gold?

• This is the one investment option that is popular
  among Indians. Physical gold is whatever you buy
  in the form of an asset that requires actual
  storage. For instance, your partywear bracelet or
  a 22k gold coin or even a diamond gold pendant
  comes under the physical gold option. As all of
  these precious accessories are in gold that
  carries a considerable amount of value with
  itself, jewellery, coins, and gold bars are good
  investment options and one of the safest as well.

6
Benefits of Investing in Physical Gold

• The possession of physical gold gives a sense of
  satisfaction to the buyers.
• Physical gold in the form of jewellery could come
  to use for wearing or mortgaging if required.
• Gold is an inflation-proof metal. If you bought a
  gold ring today, you could use it for years, and
  its value will not decrease based on its usage.
• Gold jewellery that you own in 2021 will not lose
  its demand even ten years from now. You can buy
  the best design of gold jewellery and not worry
  about it being useless after a few years of
  usage.
• Gold does not lose its shine or weight, or karat
  in any way. Its usage will only bring a few dents
  on the jewellery surface, which can be fixed
  easily.

7
Should You Invest in Digital or Physical Gold?

• The purity of digital gold is guaranteed 24k, but
  for physical gold, it varies based on jewellery
  designs and the use of diamond or gemstones.
• The price of digital gold is fixed, whereas
  physical golds price varies based on its weight,
  making charges, and style.
• Digital gold can be bought easily with a minimum
  amount of even INR 500. But physical gold
  requires a fixed amount of a few thousand to make
  a good purchase.
• Digital gold is easy to manage and theft-free as
  it does not require dedicated storage space.
  Physical gold, on the other hand, needs storage
  space and is prone to theft.

8
Invest Wisely!

• Both digital gold and physical gold have their
  pros and cons. Our advice is to go with digital
  gold if your sole purpose of buying gold is an
  investment. You can opt for physical gold if you
  want to own gold and wear it and pass it on to
  your family.