You are currently viewing What is The Difference Between Digital Gold and Physical Gold Investments?

What is The Difference Between Digital Gold and Physical Gold Investments?

  • Home
  • What is The Difference Between Digital Gold and Physical Gold Investments?
Share This Blog

In the wake of COVID, a new era of online mode has begun. This digital revolution has seen consumers more inclined toward smartphones, e-wallets, flexible investment plans, and now the digital gold investment too! Traditionally, physical gold has always been sovereign among the other metals. Earlier people were more inclined towards purchasing gold for wearing or barter system. However, with the turn of events, people now are purchasing gold as a form of investment. Buying physical gold in the form of jewelry for investment purposes is apparently not a great deal. This is where digital gold outshines the conventional physical gold investment. 

Let’s understand how digital gold investment is weighing more than physical gold: As the saying goes by Emerson, “The desire of gold is not for gold. It is for the means of freedom and benefit”. Indeed, it is! When you invest in gold, you gain both these advantages that provide security to yourself and those you love in the present and future.

Complications with physical gold

In our country, physical gold has a long tradition. Whenever people think of Gold, they imagine purchasing jewelry or a gold bar, but they don’t imagine anything beyond that. It is believed that physical gold will give them back during a financial downturn. However, the question remains: will gold’s price be justified?

Making charges involved in jewelry

We Indians have loved to wear gold for centuries ago be it for a big fat wedding or a festive season. Regardless, people today are more concerned about investing in gold jewelry as a source of financial emergency. When you purchase a piece of jewelry you end up paying making charges that are between 3%-25%. Depending on the type of jewelry, making charges are determined. Generally, jewelers use 22 Karat quality gold at the time of making, however, when selling the jewelry, they do not consider any making charges or wastage. Also, the price when you resale is quite less than when you bought that piece of jewelry.

Storage & cost issues

There’s no doubt that gold is a valuable item that must be secured carefully. For storing gold physically, you need a secure space, such as lockers, vaults, or even a secure room in your home. Theft, however, is always a concern.


It is always a question mark when it comes to the purity of physical gold. The authenticity of the jeweler plays a major role in this and even varies from city to city. Moreover, there have been plenty of gold frauds that involve a sense of doubt about purchasing real gold.

Why does Digital Gold sound more promising?

As the world moves towards digitalization, so does gold. The digital revolution has transformed physical gold investments into a modern investment option known as digital gold. Conventionally, people have shown interest in purchasing gold, but with digital gold, the process becomes easier. Your investment can start at INR 100 every month & you can be assured of its quality.

The best part is that you get real-time access to the market price for both buying and selling of gold. Your digital gold investment is backed directly by MMTC-PAMP India Pvt Ltd, a government gold manufacturer. The gold as per your worth will be kept safely in a vault on your behalf.


  • Digital gold entails zero holding costs – you hold it in your digital wallet and your provider holds it for you in a secure vault
  • This fear of authenticity is eliminated with digital gold since it represents 24k gold that is 99.99% pure.
  • There is a step up here with digital gold since most providers insure the digital gold, which is already being held securely on your behalf by third parties
  • It is easy to sell digital gold online, 24/7, and at real-time prices. As a result, you can not only buy hassle-free but also sell hassle-free.

Also Read: Gold VS Silver: Which is Better as an Investment?


The limitations of physical gold are very important to understand since gold is a commodity, a metal. Thus, as a futuristic new-age consumer, one should embrace the digitalization of gold. If the purpose is only for consumption, then physical gold will be effective. Nonetheless, when it comes to investment planning, digital gold is the king!