Gold investment is one of the safest investment options because this investment is lower volatile compared to others. Also, it has lower inflation-beating returns, which is a good cause for most preferred investment options. Investors prefer to go for gold investment as the best way to hedge. Gold investment can be the best option when the investment market is uncertain. A good kind of reliable gold investment can give you a good return in the long run. With the higher return, you can stay away from any salary loan even if you retire early.
In India, gold is one of the most adopted investments because Indians adopted gold jewelry, coins, etc. Besides, those interested in high-profile yet versatile investment portfolios show huge interest in gold investment. Investment in gold can also increase the value in return. The value of the gold investment can be equal to the wedding loan sometimes. So you can imagine, how much return you can get from gold investment.
As the investment industry is going digital daily, gold investment is also now available as a digital investment. It brings more positive investment aspects among people because of its go-to benefits.
This article is just for you if you are interested in digital gold investment and want to learn about the difference between physical and digital gold. Let’s dive in to understand more.
What is the digital gold investment?
The alternative option of physical gold investment is digital gold, often referred to as e-gold. You can purchase digital gold via various online mobile applications in a safe and secure interface.
Will the value of physical and digital gold be the same? Yes, the value of both investments is the same, along with other benefits. You do not need to carry out any extra storage or carrier costs for this investment. There is also no chance of theft like physical gold. You can stay calm that your gold investment is completely monitored by the trustworthy trading company you have relied on.
You must go to any such digital platform to purchase or invest in digital gold. When you buy or invest in gold, the trading company will create an account for you. They will have a separate vault in your name where your amount of gold will be saved. Upon purchasing the unit of digital gold, your investment partners will review the purity of the gold. This is what is done after buying the gold.
Let’s come to the selling point. When you sell your portion of digital gold, your gold trading partner will remove the gold from your account vault. Sometimes you can also get physical delivery of gold if you want. However, this may need to satisfy a few terms and conditions for some online platforms. With the selling price of the gold, you can repay your previous loans like travel loan, education loan, etc. Because of its higher value, there will be quite financial stability.
What are the renowned benefits of investing in digital gold these days?
The digital gold investment comes with a lot of benefits for investors. On one hand, it brings convenient investment options. On the other hand, it gets enough flexibility as well as security.
Here you can see the other benefits of the digital gold investment.
- No storage is needed: when investing in e-gold or digital gold, you do not need to think about a safe vault. The seller will arrange the burial with utmost safety. You also do not need to bear any additional cost.
- High-quality guarantee: with the digital gold investment, you can be sure about 24K gold. All the details of your investment will be notified before acquisition. So the quality assurance and others will be exactly correct.
- Less amount: you can even invest in digital gold with a small amount of money. There are no such restrictions that you need to follow strictly. So, it is convenient for all.
- Easy redemption: digital gold investment redemption is quite easy. You can redeem your gold in the form of gold coins, gold bars, etc. Some investment applications let you cash out your investment amount on gold.
- SIP option: if you want to invest digitally, this will help you to set up your monthly investment plan. Simply, you can fix a regular monthly amount for investment in e-gold or digital gold.
- Security: the investment in digital gold comes with ultimate safety. There is no chance of theft of the gold like any physical gold coins or bars. Only the seller of your gold will know the exact location. That’s it.
Comparison between digital gold and physical gold
- In digital gold, purity is guaranteed, while in physical gold, it can fluctuate sometimes.
- Digital gold prices are usually uniform across a specific country. On the other hand, physical gold has different price ranges.
- In the case of physical gold, you need to take care of the safety of the gold so that no one can knows the location. On the other hand, there is no need for location or vault arrangement from your side to keep your digital gold investment safe.
- Physical gold can be bought from any gold store or jeweler. On the other hand, digital gold can be obtained only on various online platforms. With the digital gold investment selling price, you can repay your advance loan on time too.
So, here are the basic differences between physical and digital gold investments. Both are unique on their terms. You need to pick the best one based on your requirements. You can find and invest in gold on various urgent loan app.