Emerson puts it eloquently, “The desire of gold is not for gold. It is for the means of freedom and benefit”. Indeed, it is! Investing in gold earns you both these qualities that help secure not just your present and future but also that of your loved ones.
However, once upon a time, the only way to acquire this precious metal was by purchasing it in its physical form. Doing this made the investor vulnerable to theft and storage issues, which often limited their gold buying behaviour.
Fortunately, this is a thing of the past! Today, gold investments are available in different formats – the most popular being investing in digital gold.
Additional Read: What is Digital Gold? Why Should One Invest in It?
Benefits of digital gold vs physical gold
Before making a hefty investment in gold, make sure you go through the following comparison carefully.
|Parameters||Digital gold||Physical gold|
|Investment cost||When you invest in digital gold through various online portals, you only pay to purchase the metal. You don’t pay any making charges. Anyway, making charges are a sunk cost, which you avoid by investing in gold digitally. This brings down the total cost of your investment.||There is no way of escaping making charges when you purchase physical gold. Even when you buy gold coins, bullets or biscuits, the maker adds a nominal making charge, which usually ranges between 8% to 16%. When you invest in gold through intricate jewellery pieces, the making charges usually start at 8% and can go up much higher depending on the work required. All this significantly increases your total investment cost.|
|Liquidity||Digital gold in India is available with utmost liquidity. You can keep buying and selling it through whichever digital portal you choose to trade in real-time.||Since physical gold is a physical entity, disposing it off usually takes some time. Here you cannot recover your money plus the appreciation bonus in real-time.|
|Quantity||Don’t have enough money to purchase 10 grams of gold? Fret not! Certain portals let you invest in digital gold for as little as Re. 1. After all, why shouldn’t you be presented with the opportunity to multiply even a tiny amount by investing in digital gold?||Typically, the lowest quantity of physical gold you can purchase is a gold coin worth 1 gram. Also, you will struggle to find jewellery items that are below 1 gram.|
|Quality||Through this medium, you always invest in 24 karat or 995 purity of gold.||Physical gold can range between 14 karats to 22 karats. Rarely can you find jewellery made of 24 karat gold. Although, you can purchase gold coins made of 24 karat gold.|
|Transparency||Purchasing digital gold is a well-regulated and stringently documented process. There is no scope for adulteration.||While a handful of brands provide a certificate of authenticity and hallmark all of their jewellery and coins before selling, there are enough unbranded jewellers who might sell you adulterated gold.|
Additional Read: SGB Vs Gold Fund: Which is a Better Investment?
The amount of gold Indians wish to purchase often outweighs the amount they can possibly wear. This is also a part reason why digital gold in India is becoming big, especially with youngsters. It offers them a safe and convenient platform to invest in a continually appreciating asset that comes with zero risk and is 100% liquid.
As mentioned above, you can directly purchase gold online through various portals, but one excellent method of investing in this valuable commodity is through Gold Exchange Traded Funds or ETFs. These are essentially gold-linked mutual funds whose value goes up when the metal’s value appreciates.
Looking for a secure and online way to invest in gold ETFs? Visit Tata Capital Moneyfy. A user-friendly digital portal by Tata where you can compare different mutual funds, SIPs, and various other investment instruments. You can also try this investment portal on your smartphone by installing the Moneyfy app.
So, invest in gold digitally through us today!