Investing in Gold: Important Facts, The Importance of Storage, and the Differences Between Physical and Digital Gold
How To Invest in Gold: An Introduction to the Differences Between Physical and Digital Gold is a new age investment instrument that allows you to invest in 24 Karat purest gold, which is then stored in MMTC-PAMP's secure vaults under
What is the difference between physical and digital gold?
Physical gold is non-refutable, divisible and transferable, and is absolutely legal tender in every country in the world. The physical gold is stored in various secure vaults and is totally inviolate against losses or theft.
However, with a new-age investment instrument like digital gold, the physical gold is replaced by a cryptographic key. So if something happens to the physical gold, the digital gold can always be substituted with the same quantity of gold.
Digital gold is a mathematical structure, but unlike physical gold, gold doesn't physically exist. It's really like holding $10 000 in cash in your hand, but the money isn't physically there.
Why should you invest in gold?
Gold is Money Gold is an important commodity for traders and financial speculators because of its dual role as a store of value and medium of exchange. Gold has been a unit of account, and trading unit for centuries. It is now the most widely used type of money. Many consider gold to be more widely accepted and trusted than other forms of money, especially because of its high intrinsic value.
Investing in Gold: Important Facts, The Importance of Storage, and the Differences Between Physical and Digital Gold Investing in Gold: An Introduction to the Differences Between Physical and Digital Gold Gold is Money Gold is an important commodity for traders and financial speculators because of its dual role as a store of value and medium of exchange.
Where can you purchase your gold from?
Gold is available through LBMA members in London at €250 an ounce. However, the price can fluctuate. Customers in London can also choose to purchase a delivery certificate and jewelry from a jeweler in the UK to hold their gold in their own name.
We advise our customers to invest in jewelry since they have unique and safe delivery options. What happens to the price of gold if Brexit happens? Gold is traded in financial markets globally and the British pound will be directly impacted by the UK's decision to exit from the European Union (EU). How should people store their gold? We recommend using safe storage. Please see our secure vault.
How to store your digital or physical gold?
How to store your gold at home? Do I have to store my gold in India or in overseas? How to check whether my gold bars are in safe condition? If I lose a gold bar, will it be covered by insurance or can I get back only its weight?
When should I go to the bank for exchanging/switching/buying gold? How to invest in digital gold and gold stocks? What's the difference between physical and digital gold? If gold prices fall, what is the impact on digital gold and vice versa? How to play the gold price action? When is the best time to buy gold? When is the best time to sell gold?
My best investment advice to every new investor? What are the major gold-related festivals in India Gold as an investment in India? Is it risky? Buy or sell gold?
Conclusion
The only way to invest in physical gold and gold miners is to buy physical gold. Buying physical gold takes care of several aspects that can be confusing to many investors. It also allows you to avoid the company/asset dilution and exposure to the underlining commodity. The introduction of ETFs has helped investors to invest in precious metals, but one can still hold physical gold in his portfolio.
It is one of the most secure ways to secure one's assets and minimize possible market risks. The type of gold that is attractive to me is Gold Eagle coins (24K) for long-term investment. What are your thoughts on investing in physical gold? Please leave your comments below! Disclaimer: ETFs reported by Elazar Advisors, LLC are guided by our daily, weekly, and monthly methodologies.