Which is Better Physical Gold or Digital Gold

Gold has been a popular go-to asset for Indians for several decades now.

And why not? It is perhaps one of the few assets that does not lose its value over time.

However, this asset is mostly held in physical form – jewellery, bars, and coins – which gives rise to several challenges regarding storage and security.

Accordingly, many investors have been looking for a better alternative and have managed to find an ideal match in digital gold.

There is a lot of speculation among investors concerning whether digital gold can emerge as a better alternative. Of course, the answer to this question is subjective. Then again, it’s suggested to take a close look at the difference in concept and approach towards physical and digital gold investment to gain a better idea.

Digital Gold Investment

Physical Gold or Digital Gold is a new age investment instrument that allows you to invest in 24 Karat purest gold, which is then stored in MMTC-PAMP’s secure vaults under your ownership. If you wish to take possession of the same, you can redeem digital gold for 24 Karat/ 999.9 purest gold coins and ingots from MMTC-PAMP. MMTC-PAMP is India’s leader in digital gold and you can buy digital gold online through our trusted partners like Paytm, PhonePe, and GPay. You can also reach out to your relationship manager in firms like Aditya Birla Capital, HDFC Securities, Motilal Oswal among others to manage your digital gold investments.

Gold coins and bars have been India’s most trusted investment instrument across generations, and for good reason. Reliable and convenient, the value of gold has increased enormously over the past few years, which makes it an increasingly lucrative option to store and compound. Gold prices have gone up more than 50% just in the last 3 years!

However, keeping physical gold stored over a long period has some downsides to it, such as accidental loss, theft, declined resale value due to making charges added on at time of purchase, and storage cost if you opt for a bank locker to store it. Digital Gold, on the other hand, when purchased is stored in secured vaults and insured on your behalf by the seller, and has zero making charges when you buy, giving you an immediate advantage over traditionally bought physical gold coins and jewellery bought solely for the purpose of investment.

Advantages of Digital Gold

There is more than one reason that brought even large wealth management players like Aditya Birla Capital and Motilal Oswal to offer MMTC-PAMP digital gold to their customers, all of whom can be categorised in the ‘seasoned investor’ bracket. Here’s why these individuals are keen to invest in it, now more than ever:

People have always been cautious of the legitimacy of gold while making a purchase. But buying MMTC-PAMP digital gold assures you invest in certified 24 Karat, 999.9 pure gold.

Since the safe keeping of large volume of gold will always be an issue, digital gold, when purchased online, allows you to transfer the hassle of security to the seller. Your gold is safely held in insured, and secured vaults while maintaining the transparency of your transaction. And for the first five years, you won’t even have to pay anything for storing this gold.

Physical Gold Bars?

The Gold-Buying Process

Buying physical gold bars online is a fairly simple process. Browse gold bar products on reputable retail websites such as APMEX, JM Bullion, and Wholesale Coin Direct. Select the gold bars you wish to buy by weight, quantity, and price.

Online gold retailers typically give discounts to customers who buy larger quantities. Certain retailers give discounts for using a credit card, while others do so for using wire transfers, so choose the more cost-effective payment option. Once you receive the gold bars, keep them in their packaging to prevent scratches and store them in a home safe or safety deposit box at your bank.

You can also bid on gold bars on eBay. When shopping for gold on the auction website, it is important to review the seller's feedback. Avoid buying from sellers with documented negative feedback on authenticity, exorbitant shipping and handling fees, and failure to deliver.

Gold-to-Go ATMs are available if you wish to buy gold bars in cities such as Las Vegas and Dubai. Consumers are advised to be especially aware of the spot price of gold since such ATMs sell the precious metal well above this price and above the prices of most other retailers.