Investment: Which is more beneficial for you to invest in – digital or physical gold? Where to invest this Diwali?

A few days before Diwali, people invest heavily in gold and silver. This time is considered the most auspicious time to buy gold and silver. Nowadays, people are also choosing digital gold for gold investment. You can invest in gold through both digital and physical gold.

If you're confused about which one to buy or invest in, this article will be very useful for you.

Physical vs. Digital Gold: Which is Better?
Physical gold means gold jewelry, coins, and bars. You've been investing in these for years. Digital gold, on the other hand, can be purchased through your phone. You can also invest in ETFs and gold mutual funds through your phone. Buying digital gold doesn't require bringing the gold home. Both physical and digital gold have their own advantages and disadvantages. Let's understand which is better for you.

Which is better for you?
To buy physical gold, such as jewelry and coins, you have to pay both making charges and GST, or tax. This further increases the price of gold. However, you don't have to pay any such charges for gold bars.

Now, let's talk about digital gold. You don't have to pay any charges when purchasing digital gold. However, you will have to pay brokerage charges and mutual fund-related charges like exit and expense ratios.

You don't have to worry about security like you do with physical gold. However, whether you sell physical gold or digital gold, it will be subject to capital gains tax. Any profit you make from selling gold will be subject to capital gains tax.

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