Physical Gold Vs. Digital Gold
Whenever the stock market goes down, investors rush to the gold market because they expect it to rise.
For instance, this year, as stocks across the board crashed due to the pandemic, gold prices rose by 28%.
Another great thing about investing in gold is that you have options. For instance, the choice between digital and physical gold.
When it comes to investments, physical gold is considered the more popular and safer option. Physical gold gives you actual possession of the gold in the form of gold jewelry, gold coins, or gold bullions.
One of the most significant advantages of investing in physical gold is that your investment is tangible; very few investments offer this. In particular, gold is a spectacular metal to invest in due to its durability.
Additionally, the tangibility allows you to hold it close to you, even in your house, offering a sense of security like no other.
And the best part about owning physical gold is that it poses no counterparty risk. It is no one else’s liability except your own.
Digital gold is a more modern phenomenon; when you purchase digital gold online—and you can do so even in small fractions—your online investment will be backed by actual physical gold, which you can sell later at a profit.
Digital gold offers a lot of unconventional benefits that you will not find when dealing with physical gold.
For instance, since you can buy digital gold in tiny fractions, it is more affordable for investors across the board.
Additionally, your purchase is backed by physical gold, so you don’t have to worry about any physical damage or burglary.
The best part about investing in digital gold is that you can get it for cheaper than physical gold, as you won’t have to pay service charges.
It’s also highly liquid, which makes it a very excellent safety net in case of market instability.
What Should You Invest In?
Digital gold, as well as physical gold, both have their perks and are great investments.
But as an investor, you must look closely at each investment’s intricacies and figure out which one suits you best.
When it comes to physical gold, it almost always carries making charges. That means you will get it at a price that’s slightly higher than the market price.
Additionally, physical gold has security risks. If you store it at home, you are putting your house and yourself at risk. And if you choose to invest in a private storage vault, that is an additional cost.
But on the other hand, digital gold lacks any regulatory mechanism, which is a considerable drawback.
Given the value of a gold investment, precautions, and protocol are everything.
Digital gold products also have a limited holding period, after which you either have to take physical possession of the asset or sell it; it isn’t an investment you can make and forget about.
If you’re still unsure about how to invest in gold—get in touch with us, at Orion Metal Exchange, for the most recent financial market updates, as well as more information on the best gold coins for investment.