For centuries, gold has been a symbol of wealth and stability in Indian households, whether tucked away in lockers or proudly worn as heirlooms. Conventionally seen as a safe bet against tumultuous markets, today, investors are faced with a new choice. Whether to buy physical gold or invest in its digital form.

What is Digital Gold?

Virtual or digital gold allows you to buy small or large amounts of gold online, anytime and anywhere. It's stored in insured vaults on your behalf and you can sell it back instantly or convert it into physical gold later. You can redeem your purchase anytime you like and convert your paper format gold into physical gold like gold bars and coins or gold jewellery and get it delivered to you.

Other Forms of Digital Gold

Additionally, you can also get gold in the form of Gold Exchange Traded Funds (ETFs), which you can purchase and sell directly from stock exchanges at market prices. Another option is Sovereign Gold Bonds (SGBs), offered by banks. You can avail of capital gain benefit while also earning an interest of 2.5% per annum.

All these are alternatives to traditional physical gold and they’re attractive options for younger investors looking to diversify portfolios, save systematically, or avoid the hassle of physical ownership. Digital gold also eliminates the need for you to worry about purity, making charges, storage or safe-keeping.

Physical Gold

For many, traditional gold is more than an investment, it's a celebration of heritage. Buying jewelry for weddings, festivals, or family milestones has carried emotional weight for centuries. It’s tangible, can be worn and you can pass it down through generations, adding sentimental value. But it comes with hidden costs: jewellery making charges, storage concerns and the risk of theft or loss. Moreover, selling it later often means a loss on resale value due to deductions.

Which One to Opt For?
If you value tradition and like the idea of wearing your wealth, gold jewelry still holds charm. But if you’re looking to invest purely for returns or want to gradually build gold assets, digital gold might just be your golden ticket.

Many smart investors today are doing both, keeping heirloom-worthy pieces for celebrations and investing in digital gold for financial goals. After all, gold may be ancient, but the way we invest in it doesn't have to be.

ALSO READ: 5 Reasons for Choosing Gold Loan to Meet Immediate Fund Needs

Disclaimer: The article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of The South Indian Bank Ltd. or its employees. The South Indian Bank Ltd and/or the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial/non-financial decisions based on the contents and information’s in the blog article. Please consult your financial advisor or the respective field expert before making any decisions.