The gold ETF offers exposure to gold through units that investors can purchase on the stock exchange. Therefore, they are similar to EGRs, since both can be purchased on stock exchanges and are backed by physical gold. The only difference is that in the gold ETF you buy units from a fund, while in the EGR you buy gold directly. Gold savings funds also offer the same exposure when investing in gold ETFs.
Since a digital gold coin (DGC) is electronic money offered and held by private entities, there is a risk. The only difference is the physical delivery option with digital gold, while the gold ETF doesn't have this option. In other words, digital gold allows investors to invest small amounts, since there are no restrictions or a minimum purchase value. The platforms offer digital gold at prices in real time, so investors don't have to worry about price differences.
Investors who want to invest in gold but cannot afford the high investment or storage costs may consider investing in digital gold. Buying and selling digital gold is done completely online without the hassle of physically holding the asset. It creates another avenue for investors seeking to diversify their investment portfolios by adding digital gold. A digital gold coin (DGC) is an electronic form of money backed by gold reserves held in vaults by private agencies.
Electronic gold is one of those investments that allows investors to buy gold in a smaller denomination, such as 1 g, 2 g, 3 g, etc. Electronic gold is cheaper compared to gold ETFs, since the latter are exposed to several charges, such as asset management fees, security service fees, etc. To know the current value of your investment in gold ETFs, you need to track the net asset value of that fund, but in the case of electronic gold, the value is the current price of gold. Therefore, investors who prefer to make small investments in gold at their convenience can invest in digital gold.
