Physical Gold vs Digital Gold
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Answer ( 1 )
Physical gold is very liquid in comparison to all other forms of gold. Gold ETFs are purely for investment purposes. While physical gold is for both investment and consumption. In Gold ETFs (mutual funds) buying and selling is more transparent. At the same time, physical gold involves no counterparty risk. Gold has been a popular go-to asset for Indians for several decades now. And why not? It is perhaps one of the few assets that does not lose its value over time.
However, this asset is mostly held in physical form - jewellery, bars, and coins - which gives rise to several challenges regarding storage and security.
Accordingly, many investors have been looking for a better alternative and have managed to find an ideal match in physical gold vs digital gold.
There is a lot of speculation among investors concerning whether digital gold can emerge as a better alternative. Of course, the answer to this question is subjective. Then again, it’s suggested to take a close look at the difference in concept and approach towards physical and digital gold investment to gain a better idea.
On that note, let’s dive straight into the fundamental differences between physical gold and digital gold to form an informed opinion