How is digital gold different from physical gold?
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Physical gold is actual bullion you own it, can store it at home, a bank, or where ever you want. Digital gold was a digital currency backed through unallocated or allocated gold storage. The honest ones were shut down by various govt. for unlicensed money transactions. I don’t know of but one still open and the wont let anyone know how much gold if any they are actually holding. Bitcoin pretty much ended the last of the digital gold companies so avoid them at all cost unless you like throwing away money.
At the same time, when selling digital gold, long-term capital gains are taxed like physical gold or gold mutual funds/gold ETFs. This means that tax plus cess and surcharge have to be paid on digital gold. Which reduces profits. At the same time, there is not officially an official regulatory body for digital gold, while the sovereign gold bond scheme works under the central government. In such a situation, the Sovereign Gold Bond Scheme is a better option in terms of profitability.
How To Convert Digital Gold To Physical Gold
The biggest advantage of investing in digital gold is that you do not have to worry about protecting it. Otherwise, you are always worried about where to keep gold safe in the house. If you keep it in a physical gold locker, then it costs separately. Apart from this, one disadvantage of investing in jewelry is that when you go to sell it, the full price is not received and the making charge is reduced, whereas in digital gold it is not so.
So overall it can be said that investing in digital gold is safe and economical. But if you want to invest in gold for jewelry or other needs in which you need it in a year or two, then you can invest in physical gold.