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INVESTING IN DIGITAL GOLD VS PHYSICAL GOLD

 GOLD INVESTMENT IN DIGITAL   VS PHYSICAL 






OVERVIEW:

*Investing in gold with digital vs physical is an asset but each have its own pros and cons we see about it brief in the blog.

INVESTING IN PHYSICAL GOLD

Pros:

Physical asset:

*It is an physical asset you can hold it in a storage 

*So it seems real in hands and it is a tangible asset

Global asset:

*They are accepted at anywhere in the world.

*So it is globally accepted asset.

Independent without technology:

*They don't need a software to sell a physical gold.

*So it is independent without a software infrastructure.

Cultural and emotional asset:

* Physical gold is used to make ornaments in many regions.

*So it is considered as a sentimental asset and it is a part of culture in many countries.

*These gold ornaments are used in gifting, marriage and special occasional ornaments.

No counter risk:

*The no interference of institutional players in physical gold so it have no risk of counter play risk.

Cons:

Security risk and storage:

*It requires a physical storage and needs a security for that storage.

*Which can be costly when savings in high volume.

Risk to stole or loss:

*It have risk of stolen or missing of an physical gold

Liquidity:

*It requires an trusted physical gold buyer to sell it and requires jewellery to buy an ornament or physical gold.

Verification and trust:

*The buyer's need to verify the purity of gold when buying and selling the physical gold buyer also check before buying it.

Making charges:

*Every time buying a physical gold as ornaments they have small or big difference in making charges according to the quantity of gold.

INVESTING IN DIGITAL GOLD:



Pros:

Flexibility:

* Digital gold is easy to buy and sell at anywhere and anytime you want to buy or sell through digital platforms.

Storage:

*There is no storage is needed and they are stored as digitally.

Low minimum investment:

*In digital gold you can invest from small amount to big.

*So everyone can invest in digital gold no need high capital.

*It have no making charges.

Liquidity:

*It is easy to sell or buy it has high liquidity. It doesn't require a physical gold buyer.

*So it makes easy to buy and sell. So it have high liquidity.

Transparency:

*It is transparent so we can track how much amount invested and we have able track the amount of gold and the amount  invested.


Cons


Third party risk:

* It requires an brokerage or platform to invest in digital gold.

*The trust and reputation of the provider or brokerage is important while investing in gold digitally.

No physical asset:

*They are only digital and not in physical asset so it is not tangible unless converting it to physical.

*Converting digital gold to physical gold may have costly.

Tax implications:

*In some regions digital are implicated high tax.

Dependent upon technology:

*It is always depends an platform of digital infrastructure.

*So it requires an platform to buy and sell. So it is always depends upon a technical platform.





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