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Digitizing Gold Investments

by Chirag Sharma
Digitizing Gold Investments

An alternative to investing in physical gold is digital gold. Investing in digital gold is considered to be a cost-effective and efficient way of investing in gold. The purchase and sale happen online at market prices. Hence ensuring complete transparency in the transaction. To invest in gold doesn’t involve additional storage and carrying costs. Investors do not need to worry about the safety of gold stored by the trading companies in a safe vault with the investor’s name. When an investor purchases a unit of digital gold online, the trading companies check the purity of the gold and place it in the vault with the investor’s name. Once the investor sells the gold, the trading company removes the gold from the vault. Investors can take physical delivery of gold upon their request.

The trading platforms charge a management fee, storage costs, and insurance, etc, but digital gold is more convenient and cost-effective than physical gold.

Benefits of investing in digital gold

  • Invest small amounts: Investors may invest small amounts of money in digital gold. There are no restrictions or minimum purchase limits. Hence one can consider digital gold for small investments. 

  • Redemption: These can be quickly and easily redeemed. The redemptions can be in physical gold coins or bars. Also, one can cash out their investment without any hassle. One can easily buy and sell the units. 

  • Safety: The digital gold assets are insured and securely deposited in a vault. As a result, the risk of robbery is eliminated. The responsibility of the gold lies with the seller.

  • Portfolio diversification: It is a good investment option for portfolio diversification and is also a good asset for hedging.

  • Real-time rates: The digital platforms offer real-time gold rates. Therefore, the investor can take advantage of the price movements and make purchases.

What is physical gold investment?

The yellow metal has only seen increasing demand over the years. It is purchased in the form of jewelry, gold coins, and biscuits (mini-bars) It can be bought directly from a jeweler, authorized institutions selling gold, and a bank with no involvement of an intermediary. Hence there is no counterparty risk. It can be liquidated anywhere in the world. Investing in physical gold has its drawbacks. The cost of carrying and storing gold is higher. Additionally, physical gold will have higher making charges than digital gold. Moreover, there is always a risk of theft.

Benefits of investing in physical gold investment

  • Gold has been the most desired and prized precious metal. The appetite to possess this metal has only been increasing in the past.

  • Gold is considered to be an inflation-proof investment. For example, one can purchase gold today with the money they have. In the future, they can sell it and recoup the changes.

  • Gold never loses its intrinsic value. History proves that metal has always been in demand. Even during a crisis, one can easily sell the asset.

  • Investors can pledge their physical gold and avail loans against them.

  • One can pass on their physical gold to the next generations.

  • Gold doesn’t depreciate over time like many other assets.

Gold is always gold. It does not lose value. Now is the best time to visit agabullion.com and open your company or personal account for investing in digital and physical gold.

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