Gold has always been considered a safe investment due to its lower volatility and inflation-beating returns. Often, investors use gold as a way to hedge, especially during uncertain market conditions. Gold is also an excellent way to diversify your portfolio if you already have divided your asset between equity and debt.
Precious metal is also purchased as jewellery, bullion, and coins. In India, buying gold is also considered good luck.
The best part is that today a person is not limited to just buying physical gold, but digital gold also. This makes parking some of your money into gold in a digital form much more convenient.
So, if you are confused between the two, this post will help settle the debate about digital gold vs physical gold.
Digital gold, or e-gold, is the virtual process of investing and owning precious metals. But it doesn't come with the hassle of physical gold, such as theft. The investment doesn't lose its value due to making charges, as is common in the case of physical gold jewellery. Moreover, there is no risk or hassle of storing digital gold as the ownership is virtual.
Below is a comparative study of the two types of gold investment to provide a much clearer idea.
Confused whether to invest in gold or silver? This can help you.
Although digital gold may seem like the obvious choice from the above table, it is crucial to know some of the cons of this investment type.
So, let's answer the question, 'Is digital gold safe?'
There is no one-size-fits-all answer to the digital gold vs physical gold debate. Both have pros and cons; ultimately, it depends on the investor's preference.
However, you can choose Fi Money as your money management platform, regardless of your investment option. The platform's user-friendly interface makes investing convenient with a few simple swipes.
Moreover, Fi Money is a partner of LiquiLoans that provide you with Peer-to-Peer (P2P) investment that helps you get up to 9% return on your investment. So, whether you wish to invest for the short term or long term, Fi Money has the solutions.
The choice ultimately depends on your preference and investment horizon as an investor. While digital gold allows better short-term investment and does not have the storage hassle, physical gold is better suited for the long term. Also, those preferring liquidity should go for digital gold, but risk-averse investors should choose physical gold.
There are many certified gold platforms and RBI-licensed banks where you can purchase digital gold. All you need is a valid bank account and a PAN card.
People with short-term investment goals prefer liquidity over returns and choose digital gold over physical gold. Moreover, those trying to avoid the hassle of storing physical gold, and risks like theft, can choose digital gold.
Digital gold, gold ETFs, and gold mutual funds are some of the most liquid gold investment options.
