• 12 Jan , 2023
  • Blog

Know what to buy: digital gold vs physical gold

With the recent pandemic and global shift to online models, almost everything today is done remotely - from work to school and even investments. More than 15% of people are keen to invest digitally rather than purchase gold in physical form - jewellery. Stock, SIP mutual funds, and many more investment options are now easy to process with digital platforms. 

There's no need to visit a local jeweler or making charges when you can purchase online gold bonds. And moreover, you don't have to worry about the purity of gold and the amount of gold you are buying. One of the safe trusted digital platforms to invest in digital gold is DigiGold. You can start your investment with just 1 rupee only. From buy and sell to gold SIPs, it has everything. 

What is right, physical gold or digital gold?

Investment is a sensitive subject. Know all your investment options. We Indians buy gold, as gold jewelry is the most valuable sovereign. For example, when you buy 10 grams of gold the total purchase rate of gold increases by 30 % with an investment withholding period of 10 years. Profits might vary as making charges of gold can happen every year. It is one of the most significant disadvantages of buying physical gold.

In contrast, digital gold is often more lucrative for investment purposes because there are no making costs associated with it. When you redeem your gold in digital form, you will not have to pay anything to get it, making it a cost-effective investment. Know all the benefits of digital gold.

Gold vs Gold investment 

Gold comes with many behests. It needs to be stored in a safe & secure location. You'll need to insure your gold, and keeping track of its value to monitor your investment is essential. To avoid this, all hitched people have started planning to invest in digital gold.

4 Benefits of digital gold investment

Storage war

More than 10 % of youths consider traditional gold a little risky. Storing gold can be expensive and complicated, especially if you frequently move it around or are worried about it being stolen. Many people keep their gold in a bank locker, which comes at an additional cost.

Digital gold is safer and more convenient. You can buy digital gold because you can store it in a digital wallet, and your provider will hold them in a secure vault. There are no holding costs associated with e-gold, which makes it a more affordable option for investors.

Security status

Digital gold can provide an extra level of security that physical gold cannot. While physical gold is traditionally seen as a 'store of value, there is always the risk that it could be lost or stolen. With digital gold, this is not a worry as most providers insure the digital gold against loss or theft. The digital gold is also securely held by third-party vault providers, adding another layer of protection.

Buy & sell on-go

When you go to sell your physical gold, there are a few things that have to happen first. There are authenticity checks that have to be done by the jeweler, and most of the time, jewelers will give you a lower selling price than the market rate. You can avoid all that hassle with e-gold because you can sell it online, 24/7, and at real-time prices. That means not only is buying digital gold easier but selling it too!

Versatility and Affordability

Traditional gold is offered in gram units such as 1gm, 5gm, 10gm, and more. Physical means that, at current prices, you need a minimum of Rs.5,000 to invest in gold. Multiples of this initial investment are also possible.

Digital gold is a more affordable option for everyone and can be bought in small quantities. Most providers offer a convenient SIP (Systematic Investment Plan) option for those who want to invest in e-gold. Digital gold is flexible for different purposes – from self-purchase to investment and gifting. You don't need a large budget to buy Digi gold like you would if you were buying physical gold. You can also get delivery of your digital gold coin and gold bars if needed with some of the platforms.

It's important to remember that when you're comparing Digital gold to physical gold, digital gold almost always comes out ahead due to the additional benefits it offers on top of the core benefits that make gold valuable to invest in, to begin with.

Digital gold always comes out on top - whether you're buying, selling, or holding onto it!

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