If you’ve ever looked into how to invest in gold, you might have realized there’s more than just physical bullion to buy. Nowadays, you can purchase gold digitally with cryptocurrency assets like Goldcoin. In this article, we’ll go over the pros and cons of each.
Digital gold, essentially stablecoins tied to the value of gold, is less cumbersome than physical gold for myriad reasons.
To start, you can purchase digital gold on an exchange completely anonymously. There’s no need to verify your identity or reveal your address. That, and Goldcoin allows you to buy fractional amounts of the asset, making it perfectly accessible to those without a ton of funds.
There’s also no need to store digital gold. All digital gold you purchase can be stored in a free, online, cryptocurrency wallet. Those purchases don’t charge extra fees, either. Digital gold purchases are made without the need for a bank or other intermediary. Transactions are made automatically on the platform.
That ease also makes it easier to sell back. Physical gold can be a pain to sell, as dealers often charge extra funds or might not take it at all. Digital gold can be sold whenever you’d like with no hassle.
Of course, digital gold isn’t perfect. If you lose the assets, for instance, they can be very difficult to reacquire. Should a transaction go wrong, there’s no way to reverse it or recover those funds, either. Paying taxes on digital assets is still confusing, too. There aren’t any clear regulations on doing so. It’s important to consider this before investing in digital gold.
Physical gold is the traditional way to purchase this asset. This asset has been around for thousands of years – and has been traded for almost as long! Many investors view gold as a safe haven asset during economic uncertainty. However, these insights make gold a little difficult to acquire.
For one, buying physical gold requires you to verify your identity. There’s no way to buy it anonymously. Also, most sellers charge extra fees. And that’s not to mention you must either buy a safe to store it or pay a third-party to do so. The first way is expensive, and the second leaves your gold in the hands of someone else.
Of course, it’s great having that physical gold in your hands. Nothing compares to holding your investment in person. However, storing that gold for a period of time makes it quite difficult to sell back. Many gold dealers are a pain to work with and will want to tweak the gold before buying it back. This costs extra time and money for you.
However, unlike digital gold, physical gold comes in various forms. You can acquire it in the form of gold bars, jewelry, coins, and more. This makes it much easier to store, depending on the type you purchase.
If you’re still bent on having the physical gold in your hands, understand these holdups before investing.
Digital Gold vs Physical Gold: The Verdict
While digital gold might seem like an obvious winner, here, it really depends on what you want out of an investment. Ease of access and anonymity are great in the case of digital. However, some investors might enjoy the peace of mind of holding their physical gold. If they can afford the storage space, why shouldn’t they?
At the end of the day, do your research and understand which method works better for your situation.