Digital gold adds an additional layer of security. Physical gold is traditionally considered a “store of value”, providing security and protection. However, there is always fear and risk of physical loss or theft. Physical gold should be preferred when you want to use it for consumption in the form of jewelry.
Otherwise, digital gold is considered a better option, since it guarantees security and has no additional storage costs. However, digital gold versus physical gold has its pros and cons. Therefore, all parameters must be considered before buying physical and digital gold. Gold is considered a safe haven in terms of investment and there are several ways available to invest in the precious metal, including digital gold and physical gold.
Experts say that gold also improves overall portfolio performance by generating long-term returns and providing liquidity without credit risk. Digital gold is an alternative to physical investment in gold and, according to experts, has proven to be the most efficient and profitable way to invest in the yellow metal. While Bitcoin has sometimes been described as “digital gold”, there is a category of cryptocurrency that is actually digital gold. With no storage fees, investors can securely store physical gold without the primary cost of investing in traditional gold.
Whether it's digital gold or physical gold, an investment portfolio with around 10 to 20% gold is considered healthy. This would have the effect of increasing the value of Goldfinger's personal gold supply, as the total amount of gold worldwide would be reduced. With digital gold, it is always possible to spend gold in a way that is as useful as fiat currency, with the added financial security that gold historically maintains its value over time. Investors should not worry about the safety of gold stored by trading companies in a secure vault in the name of the investor.
With the entire world moving towards digitalization, gold in digital form has been gaining popularity. Investing in physical gold has been a safety net for centuries, since it has historically maintained its value over time and, because of this, demand has increased steadily. Agents buy the corresponding amount of gold when investors place an order for digital gold and deposit it in a vault in their name. Digital gold also opens up the asset to more people around the world, since there is no minimum purchase amount and investors can buy (or trade) gold in small fractions.
Gold must be mined (there are numerous reality shows that follow adventures in gold mining, if you're curious to know how it's done). While governments considered that the gold standard was too difficult for national economies to manage, private companies took up what governments had left behind and are replicating the old system, only now using electronic money instead of paper money. If an investor wants to buy gold only for the purpose of investing, buying physical gold is not recommended. However, digital gold is not regulated and has a limit on the maximum number of years it can be kept in digital form.