The debate about which form of gold (physical, digital, SGB or ETF) is the best is endless. It depends entirely on people's discretion and on the occasion. Some of the gold ETFs available on NSE are the Nippon India Gold BEes ETF, the Axis Gold ETF, the HDFC Gold Exchange Traded Fund, the ICICI Prudential Gold Exchange Traded Fund, the Kotak Gold Coded Fund and Quantum Gold Fund, among others. The possession of paper gold through digital media has increased and digital gold is rapidly becoming an easier, simpler and more cost-effective way to participate in the potential of gold as an asset class.
All of these gold-linked financial products can be purchased through the investor's Demat account, said Yogesh Kalwani, chief investment officer at InCred Wealth. However, when there is inflation in the market and gold prices soar, what is needed now is to make informed decisions about investing in gold. Investing in gold can be made in the form of physical gold, sovereign gold bonds, gold ETFs and gold funds. When you are on different digital gold platforms, you may notice differences in price.
Once you invest in digital gold, these trading companies purchase an equivalent amount of physical gold and store it under your name in secure vaults. In times of inflation, you could consider investing in digital gold, since it is considered a safe haven, since it maintains its value much better than assets backed by currencies, which can rise in price but fall in value. Most investment experts recommend distributing your investments among several asset classes, such as stocks, bonds, gold, real estate, etc. Buying digital gold simply means spending money but not having physical gold on hand, but rather obtaining a certificate or document showing the amount of gold you have purchased or an online extract showing the stock.
Digital gold is the new trend of the season and buying gold digitally has multiplied with the arrival of Covid-19.You only have to pay for gold, unlike physical gold, where manufacturing costs have to be borne, making the total cost of investment quite high. Despite the senior community, which is still getting familiar with digital gold trends, the younger generation is investing heavily in digital gold. The three most popular ways to hold gold digitally are to buy sovereign gold bonds (SGB), exchange-traded funds (ETFs) and gold units on websites or apps. This is also one of the main reasons behind the rise of digital gold as one of the best investment plans.