Is it better to invest in physical or digital gold?

Investment cost You don't have to pay any manufacturing fees. On the other hand, making charges is an irrecoverable expense that you can avoid by investing in gold digitally. As a result, the total cost of your investment is reduced. But when buying real gold, there's no way to avoid incurring expenses.

Buying gold is generally kept confidential, unlike other forms of investment. However, it is recommended to keep all purchase receipts securely for income tax purposes. The minimum investment in physical gold is high. For example, golden crackers are available in a minimum quantity of 10 grams.

Therefore, buying physical gold has a higher minimum investment than digital gold. Anyone universally accepts gold in exchange for cash. Therefore, it can be liquidated anywhere in the world. However, the price of gold varies from dealer to dealer.

The resale value is lower than that of other forms of investment in gold. Digital gold adds an additional layer of security. Physical gold is traditionally considered a “store of value”, providing security and protection. However, there is always fear and risk of physical loss or theft.

Investing in gold electronically through ETFs and gold funds is considered a better investment option than buying physical gold, since the latter involves high costs in the form of commissions, which are deducted when selling the gold product. The two most common ways to own gold digitally are by purchasing digital gold or gold-exchange traded funds (ETFs). On the other hand, a gold ETF is an exchange-traded fund that monitors the domestic price of physical gold. In India, digital gold can be purchased through multiple apps and websites; however, only 3 gold companies keep their gold, namely Augmont Gold Ltd, Digital Gold India Pvt.

Keep in mind that when it comes to digital gold versus physical gold, digital gold takes the lead, as it offers all of these benefits, in addition to the main benefits, which, in and of themselves, make gold a valuable investment. As a result, investors who want to make small ad hoc investments in gold can do so by purchasing digital gold. Another benefit of Digital Gold is that, unlike gold ETFs, the investor doesn't need to have a Demat account to buy it. Since digital gold is fully allocated, when necessary, the consumer can finally take possession of this digital gold in their account or sell it back to the seller at market prices.

In normal markets, gold ETFs combine the simplicity of investing in gold with the flexibility of investing in stocks. Investing in digital gold is considered a profitable and efficient way to invest in gold. A digital gold purchase is an instant purchase of gold online that is credited to your online gold wallet. However, while gold ETFs are publicly traded and can be bought and sold through a Demat account, Digital Gold can be purchased online directly from the seller or from authorized partners, such as well-known e-wallets and other platforms.

Many alternatives to physical investments in gold were created to address some of the drawbacks of physical investments in gold, such as liquidity and storage difficulties. Three companies offer digital gold in India: Augmont Gold, MMTC-PAMP and SafeGold, which is the retail brand of Digital Gold India. The gold you buy is backed by physical gold that is stored under your name in a certified vault.