Digital Gold vs Physical Gold – Which is Better Investment Option

Digital Gold vs Physical Gold – Which is Better Investment Option


The long-standing supremacy of physical gold is being challenged by digital gold in the field of investment options. Explore this study to discover Digital Gold vs Physical Gold.

Gold has been a favored investment option in India for centuries. It is popular for its intrinsic value and as a hedge against inflation. However, with the advent of technology, investors now have access to digital gold, which offers a convenient and accessible way to invest in this precious metal.

However, conventional physical gold still remains a popular choice among investors. Knowing whether digital gold is better or physical gold is essential to make better investment decisions. Let’s end the debate between digital gold and physical gold with Koshex.

What is Digital Gold?

Digital gold refers to a digital form of investing in gold. Investors can buy digital gold in small denominations electronically, without the need for physical possession. An equivalent amount of digital gold will be stored in insured vaults. Digital gold can be bought and sold on various online platforms at the market price of gold. You can also invest in digital gold through Koshex. The gold is 24k and certified by the government.

What is Physical Gold?

Physical gold refers to tangible gold in the form of bars, coins, or jewelry. It involves purchasing physical gold from authorized dealers or jewelers and storing it physically, either at home or in a bank locker.

Physical gold offers the advantage of being a tangible asset that can be held, touched, and used for ornamental purposes. People buy physical gold in the form of jewelry, gold coins, bullion, etc. It has been a traditional form of investment in India for generations.

Digital Gold vs Physical Gold – Comparative Analysis

Let’s compare digital gold vs physical gold to understand which is better for investment purposes:

AspectDigital GoldPhysical Gold
Digital gold can be bought and sold online and is therefore accessible 24/7 to investors.

Requires physical purchase from authorized gold dealersAccessible only during market hours.
Can be bought and sold in small denominations and at the comfort of your home.

Purchase the gold from jewelers and then store it in safe lockers of banks. It carries a lot more hassle than digital gold investments.
Transparent pricing and buying process.

Pricing can be influenced by the jewelers according to the local market conditions.
Ownership is represented digitally. Buyers don’t have physical possession of the asset.

Actual physical possession of the asset.
Storage and Safety
Gold equivalent to the amount you invested is stored in insured vaults. Thus, the responsibility for storage and safety is not on the investor.

Physical gold investment requires physical storage and security measures. If stored at home, then there’s a risk of theft and robbery. Thus, the risk is on the investor.
Digital gold investments are highly liquid and can be easily sold and converted into cash in just a few clicks.

Investments in physical gold are less liquid than digital gold investments. It requires you to find a buyer or sell your gold to a jeweler.
Cost Efficiency
Digital gold investments typically have lower costs than physical gold, but you should check for entry and exit loads, transaction charges, and insurance charges.

Physical gold can include making charges, designing charges, labor charges, etc. In some cases, these charges can go as high as 10% of your gold’s investment value. Buying gold coins or bullion can help reduce charges in such cases.
Investment Purpose
Digital gold is primarily meant for investment purposes and portfolio diversification. As it is not physically available, therefore, you cannot use it for ornamental purposes.

Investments in physical gold can be beneficial for multiple purposes like investment, portfolio diversification, and even ornamental purposes.

What Should You Choose?

Both digital gold and physical gold offer unique advantages to investors in India. However, it is clear that digital gold has many more advantages and utilities than physical gold. Whether it is liquidity, cost efficiency, or storage, digital gold ranks higher than physical gold.

Digital gold offers accessibility, convenience, and cost efficiency, making it suitable for investors who prefer a hassle-free and flexible investment option. Digital gold can be bought and sold online 24/7, and it can be stored in secure vaults by the provider. This makes it a very liquid asset, and it can be easily converted into cash if needed.

Physical gold, on the other hand, is a more tangible asset. It can be held in your hands, and it can be used for both ornamental and investment purposes. However, physical gold is not as liquid as digital gold, and it can be more difficult to store and insure.

Ultimately, the choice between digital gold and physical gold depends on your individual preferences, investment goals, and risk appetite. You should consider factors such as accessibility, convenience, storage and safety, liquidity, cost efficiency, and personal preferences related to owning physical assets when making your investment decision.

Also read: Can I Convert Digital gold To Physical Gold?

Lets Wrap-Up

The best way to invest in gold depends on your individual needs and preferences. If you want to be able to see and touch your gold, then physical gold may be the right choice for you. However, if you want a more convenient and secure way to invest in gold, then digital gold may be a better option.

When considering whether to invest in digital gold, there are a few other factors to keep in mind. These include:

  • The fee that is charged by the platform or dealer.
  • The liquidity of the market.
  • The risk of fraud.

It’s important to do your research and understand the risks involved before investing in digital gold.

Koshex is a popular platform for buying digital gold. It offers 99.99% pure digital gold that you can buy, sell, and accumulate anytime anywhere. You can also track your gold investment value and transact anytime in just a few clicks. It’s a safe and convenient way to invest in gold.

Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Investors are advised to conduct their own research and seek professional guidance before making any investment decisions.