Know what to buy: digital gold vs physical gold (2024)

• 12 Jan , 2023
• Blog

India is diving headfirst into the digital age. Now, we can shop for anything online. Not just that — we don’t even need to carry cash with us these days. (UPI of course).

Now, this wave of digitalization is reshaping gold investments as well. Because you don’t need to carry a gold bar and then go deposit it in the bank anymore. You can just buy digital gold.

For those of you who are still scratching your heads, digital gold is literally gold but in digital form. Just as you shop for clothes online, you can buy gold online using an app.

But how is it better than physical gold? Or is it safe to own digital gold? How do you sell it? We will answer all such questions in this blog and give you a detailed comparison between digital gold vs physical gold.

Digital gold vs Physical gold

Benefits of buying Digital gold

We have said this enough times and we will keep repeating this for eternity. The main advantage of buying digital gold over physical gold is that you can invest in digital gold with as little as ₹1.

Next is the convenience factor. You don’t need to go visit a jeweler that too after a tiring work day.

Plus, you can keep your weekends for refreshment and not unnecessarily visit the gold market to find gold at the best price. Rather, you can just download the app and buy it.

To sell your gold also you just need to open the app and sell it. Isn’t that super convenient? And let’s not forget the storage part. The company stores it in safe digital vaults on your behalf. So you don’t need to arrange storage also.

Another main advantage is that when you buy gold for let’s say ₹1. There's fractional ownership. That means out of 10 gms of gold you own the quantity of gold equivalent to ₹1 but the remaining gold is owned by other people.

This doesn’t affect your ability to sell it but that’s how you can own it in the minimum quantity you can imagine. As a result, you can experiment a lot with your investment to see if this is working or not.

Whereas when you own physical gold, ownership is yours totally. So if your investment fails, you need to bear the consequences for those 10 gms of gold — that’s ₹70,000 as per today’s gold price in India. But It’s Not Like Physical Gold is Not Beneficial! We won’t say physical gold is not beneficial. After all, our families have been buying it since the time being.

So here are a few pros of buying physical gold.

You can hold it, see it, and show it off. Nothing beats the feeling of holding a shiny gold bar (or, more realistically, a coin).

It requires no technology. It’s straightforward—go to market, buy gold, store it, and go back to the jeweler to sell.

However, these benefits don’t justify why you should choose this over digital gold. The advantages aren’t that solid.

However, the Cons Outperform the Benefits

Read this list of cons and you will know the difference between physical gold and digital gold.

High Minimum Purchase: To get started with physical gold, you typically need to buy a minimum of 10 grams. At current rates, that’s around ₹70,000 for 22-carat gold. And let us tell you some jeweler might charge you more than this. Because gold prices are different in different cities. However, when you buy it digitally, you buy it gold at the best rate, and that too at a live rate.

Storage Issues: Storing gold safely requires a secure place like a bank locker or a home safe. And let’s be real, how many of us have a secret vault at home?

Liquidity Problems: Selling physical gold can be a hassle. You’ll need to find a buyer and sometimes even pay a premium for selling.

Why Is Digital Gold the Way Forward?

See, we get it — it is the first time you are investing in e-gold. But that’s why you should pick digital gold. It allows for small investments, which is perfect for those who are just starting out. You can build your gold portfolio gradually without having to make a huge upfront investment.

With digital gold, you're embracing the future. It’s a convenient, low-entry, and hassle-free way to invest in gold. As millennials and Gen Z, we’re used to doing everything online—from shopping to banking. Why should gold be any different?

On top of that, you can start an SIP in gold (That option is available in our app). It means every month you invest a fixed amount on a particular date to buy gold. So if you just start with ₹2000 today and do this every month for 24 months — you will own ₹48000 worth of gold after 2 years.

Experts predict that prices of gold will rise to 3500$ an ounce in 2025. It is approximately ₹10,000 rupees per gram.

Now you are smart enough to decide for yourself.

In Conclusion

Let’s be real—physical gold is great for those who love the feel of real gold in their hands or want to show off a shiny coin. But when it comes to practicalities, digital gold wins any day.

High minimum purchases and storage hassles are so last century anyway! For the tech-savvy generation, digital gold represents the future of investing. It aligns with our digital lifestyle and offers a modern approach to an age-old investment.

Your digital gold is safely stored in secure vaults, making it a low-maintenance investment. And the best part? You can experiment with your investments without the stress of a hefty upfront cost.

So don’t wait until you gather that much money. Just start a gold SIP using the DigiGold App.

FAQs

1. Is it better to buy digital gold or physical gold?
Digital gold wins for convenience, low costs, and no storage hassles. Physical gold is tangible and classic, but it’s pricier and requires secure storage.

2. Is it advisable to buy digital gold?
Yes, it’s a great choice for its ease of use, low minimum investment, and secure storage—all managed from your phone.

3. Should I buy gold online or offline?
Online is better for convenience, better rates, and easy management. So yes, you should definitely buy gold online using a trusted App like DigiGold.