Gold is considered be a good investment option and a source of financial security when macroeconomic and geopolitical tensions arise. If you’re new to investing, you’ve got to be aware that there aren’t many good investment options available right now (unless you want to take risks); fixed-interest investments, particularly fixed deposits, are notoriously difficult to earn a return on. As vstocks have surged so rapidly that they are regarded as risky investments, real estate is not liquid and is perceived as an investment for the long term.
While uncertainty reigns supreme, what about Gold? As a result of its scarcity, Gold has proven to be a valuable hedge against volatile markets due to its increased costs over the past decade.
However, there was a period when the only way to obtain this valuable metal was to buy it in its basic form. This exposed the investor to theft and storage concerns, frequently curtailing their gold purchasing behavior.
Fortunately, this is no longer the case! Today, gold investments come in various forms. The most popular investment is digital Gold.
What is Digital Gold?
Despite India’s nascent digital gold investment, its transparency and convenience enable it to gain traction. In this investment setup, one can buy or sell smart Gold online at India’s prevailing digital gold price today. In buying digital gold, the investor invests in Gold of 99% purity.
What is Real Gold?
The real or physical gold market has long been a favored investment for many Indians, whether they realize it or not, with many acquiring gold coins or jewelry for personal use. Because the purity is frequently not guaranteed or is less than 99.5 percent, you have no counterparty risk when purchasing physical Gold from a jeweler or a bank without going through an intermediary.
However, the investment in physical Gold is more expensive, and the price of the precious metal can vary widely from state to state. In fact, physical Gold has a lower resale value when compared to other similar investments.
In addition, those who invest in real gold must consider storage and security. As an investor, you may start investing in digital Gold through eswarna to simplify the procedure even further.
Digital Gold v/s Physical Gold
| Key Points | Digital Gold | Real/ Physical Gold |
| Authencity | The investment’s quality is assured 24k 99.9%. | It is possible that the gold in issue is not 99.5% pure. |
| Prices | In India, the price of digital gold stays consistent. | Prices can differ from one state to the next. |
| Storage | It is kept in safe lockers in the name of the investors, which has zero risk of theft | Buyers are responsible for storing gold, It has higher theft risks, as the storage might be that efficient. |
| Investment Size and Cost | Gold is purchased and sold in either price or weight terms. Investors have to pay 3% GST when investing in digital gold.. | Gold coins and biscuits in 10 gm quantities are offered. Buying gold jewellery, you have pay at least 20% – 30% of the purchase price as manufacturing costs |
| Tax | Gains on gold assets held for much less than three years are taxed at your marginal tax rate. Gains on investments held for further than three years, on the other hand, are taxable at 20% with indexation advantage. | The income tax slab applies to the proceeds of a gold investment maintained for less than three years. Profits on gold kept for more than three years, on the other hand, would be taxed at 20percentage with an indexation advantage. |
| Trading | Trading digital gold investment is simple and straightforward. With a few mouse clicks, you may buy or sell gold online. | Physical gold may only be bought following a visit with a jeweller or bank. |
| Liquidity | It is easily convertible into bullion, coins, or cash. | They were usually replaced through a jewellers. |
Why do Today’s smart Investors Opt for Digital Gold?
It is no secret that Indians love gold since yellow metal has long been regarded as a safe investment option. However, physical gold can be risky since it can be stolen or lost if not cared for. For those who wish to invest in gold without owning it in person, digital gold can be the solution.
Why prefer investing in Digital Gold?
Digital gold cannot be bought directly by you as you need an authorized third party to do so. When you place an order for digital gold with your agent, the agent purchases the gold corresponding to your order and holds it in a vault for you. Additionally, when you wish to sell your digital gold holdings, the agent will sell them for the overall market value and deposit the funds into your account. The entire procedure is digital and secure; investors are never given actual gold.
There are a lot of charges associated with purchasing physical gold. When you buy gold jewelry, the vendor charges manufacturing charges, as well as waste charges. Thus, gold jewelry will prove to be a very expensive option. Also, you are never sure that the gold you purchase is pure. The vendor wastes some gold during the process, so he charges the buyer for it.
You will need to be extremely careful about where you will keep gold bars and coins if you decide to buy them. Investing in physical gold is not a viable option because bank lockers are available for you to safely deposit your belongings. Still, they come at a certain cost, so it is not a viable option to buy physical gold.
Investing in gold is wise, and digital gold is your best option. Unlike real gold, this is 24K 99% pure gold, which cannot be lost. It does not come with charges for making and wastage; you do not have to worry about safety and can buy and sell it easily.
Conclusion
Although both real and digital gold is excellent alternatives to physical gold, they are inefficient. This is because you must pay expenses such as expense ratios and other relevant charges to the fund house, but digital gold has none.
Therefore, digital gold is the best way to invest in gold. Digital gold is also best because it can be exchanged for physical gold and delivered to your home. Physical gold investment is never a good idea as it incurs various charges. Therefore, you should invest in digital gold, where you get the true value for money for your money. To know more about sip in gold.