Digital gold has its own set of benefits to offer over traditional physical gold. Firstly, digital gold is considered as a safer alternative than storing and owning physical bars or coins. It is virtually impossible to steal it from you or hack into your account when you hold digital gold, simply because there are no bars or coins in your locker.,
Gold has been a popular go-to asset for Indians for several decades now. And why not? It is perhaps one of the few assets that does not lose its value over time.
However, this asset is mostly held in physical form - jewellery, bars, and coins - which gives rise to several challenges regarding storage and security. Accordingly, many investors have been looking for a better alternative and have managed to find an ideal match in digital gold. There is a lot of speculation among investors concerning whether digital gold can emerge as a better alternative. Of course, the answer to this question is subjective. Then again, it's suggested to take a close look at the difference in concept and approach towards physical gold and digital gold investment to gain a better idea.
What is physical gold?
Physical gold is very liquid in comparison to all other forms of gold. Gold ETFs are purely for investment purposes. While physical gold is for both investment and consumption. In Gold ETFs (mutual funds) buying and selling is more transparent. At the same time, physical gold involves no counterparty risk. Gold has been a popular go-to asset for Indians for several decades now. And why not? It is perhaps one of the few assets that does not lose its value over time.
However, this asset is mostly held in physical form - jewellery, bars, and coins - which gives rise to several challenges regarding storage and security.
Accordingly, many investors have been looking for a better alternative and have managed to find an ideal match in digital gold.
There is a lot of speculation among investors concerning whether digital gold can emerge as a better alternative. Of course, the answer to this question is subjective. Then again, it's suggested to take a close look at the difference in concept and approach towards physical and digital gold investment to gain a better idea.
On that note, let's dive straight into the fundamental differences between physical gold and digital gold to form an informed opinion.
digital gold investment
Since last year as Covid-19 pandemic hit, gold prices rallied to historic highs that encouraged more investors to invest in the precious metal. People who are not familiar with the different avenues of investment in gold gradually became interested in the same. So, if you are one of those looking to invest in the precious metal, you must be sure about the vast opportunities and options in the investment, and its benefits. Additionally, before going into the discussion of gold investment, an investor should always consider that what is the particular purpose behind it. If someone is looking for an ornament, then this is gold jewellery, but if someone is looking for more profit or return out of it - then digital gold is certainly a better option than gold coins or other physical gold options. Here is a discussion about what digital gold is, and should one choose it or not.
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