Gold has always been a trusted form of wealth in India. But now, you do not need to visit a jeweler or buy physical coins. You can own gold through your phone. Digital gold and gold ETFs have become two of the most popular investment options today. But which one is right for you?
Digital gold is offered by fintech platforms like PhonePe, Paytm, and Groww. You can start investing with just ₹10. The gold is stored securely by the provider and can be converted into physical gold later if needed. It is great for beginners and offers real time pricing.
On the other hand, gold ETFs are traded on the stock exchange. You need a demat account to invest. ETFs are more regulated and generally come with lower management costs compared to digital gold platforms. They are ideal for slightly more experienced investors.
When it comes to liquidity, both are easy to buy and sell. But ETFs offer faster withdrawals during market hours. Digital gold, while available 24x7, may take a day or two for sale and transfer.
There are also tax considerations. Holding gold ETFs for more than three years qualifies you for long term capital gains tax with indexation. Digital gold is treated like physical gold and taxed accordingly.
The better choice depends on your goals. For long term investing and lower costs, gold ETFs are better. For small, flexible, and accessible savings, digital gold is more convenient.
Either way, gold remains a smart way to diversify your wealth.
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