The world is changing rapidly. The last few decades have seen major shifts in all industries, mainly due to the internet. Now, you can shop, connect, and much more online. So, the investment sector had to adapt too. This shift has moved investing online.
Today, you can invest in stocks, bonds, and real estate. Recently, digital gold has become a new option. Now, you can invest in gold online without buying it physically.
Here’s a table that outlines the key differences between digital gold and physical gold:
| Feature | Digital Gold | Physical Gold |
|---|---|---|
| Accessibility | Easily accessed via mobile apps and traded online | Requires physical storage and in-store purchases |
| Storage | Stored electronically | Needs secure physical storage |
| Liquidity | High online liquidity | Selling involves multiple steps |
| Maintenance | Low maintenance | High maintenance, especially for jewellery |
| Ownership | Digital possession on an online platform | Physical possession |
| Transferability | Instant transfers | Transfers are limited by location |
| Risks | Minimal risks | Susceptible to theft or loss |
How Does Digital Gold Work?
As the name implies, digital gold is the equal of real gold in the digital realm. Put differently, it is an online investment choice that lets you purchase tiny amounts of gold without having to keep it in physical storage. Unlike conventional gold investments, gold investing does not require the purchase of gold jewellery or bars.
Types of Digital Gold Investments
-
- Gold ETFs: Exchange-traded funds representing ownership of physical gold.
- Digital Gold Platforms: Online platforms for purchasing and holding fractional gold.
- Sovereign Gold Bonds (SGBs): Government-issued bonds denominated in grams of gold.
- Digital Gold Accumulation Plans (DGAPs): Systematic plans for accumulating small amounts of gold over time.
- Gold Mutual Funds: Professionally managed funds investing in gold-related assets.
Why Buy Digital Gold?
Soon, digital gold investment will be key in finance. So, it is wise to know its benefits early. We have gathered the main advantages and reasons to buy digital gold.
- Availability
You do not have to worry about keeping physical gold when you invest in digital gold. To begin your investing journey, all you need is a digital gold account and a decent internet connection because it is accessible online. As a result, you can access it from anywhere in the globe.
- Ownership In Parts
Since you can even purchase very modest amounts of gold, you need not have a large financial outlay for the investment. This enables you to easily and affordably diversify your investing portfolio.
- Availability Of Liquid Assets
Digital gold offers high liquidity, unlike many other investments. You can quickly convert it to cash and easily buy or sell. Moreover, you can exchange digital gold for physical gold.
- Safety
The possibility of theft or loss is further reduced in this situation because you do not need to store physical gold. Because Digital Gold is safely kept in digital format, it offers you a practical and secure substitute.
Aditya Birla Capital App transforms investing. This app allows easy trading of stocks, securities, and digital gold. Get real-time prices for better decisions. Enjoy secure storage. Build your investment strategy on its simple platform. Trade smart, invest wisely, and grow your wealth, all from your phone.