Same Sona, New Options
Digital gold vs physical gold is a common comparison for Indian investors looking for long-term financial security. Gold has always been a symbol of wealth and safety in India. Traditionally, families invested in physical gold such as jewellery, coins, biscuits, and bars. However, in recent years, a modern alternative has emerged in the form of digital gold.
Both forms represent pure gold, yet their features, costs, and convenience vary significantly. So, if you’re planning to invest, you may be wondering:
Digital gold vs physical gold, which is better for YOU?
Here’s a simple breakdown to help you decide.
What Is Digital Gold & How It Works
Digital gold is pure 24K gold purchased online, stored securely by the platform on your behalf. You own the gold, but you don’t need to store it physically. Every rupee you invest gives you a proportional amount of gold at real-time market rates.
Key Points About Digital Gold:
- Backed by physical 24K (99.9%) gold
- Stored in insured vaults
- Buy or sell anytime, even tiny quantities
- No making charges, wastage, or storage issues
- Option to convert to coins/bars (on supported platforms)
Digital gold investment in India has become extremely popular due to its convenience and low-entry barrier.
What Is Physical Gold & Why It Still Matters
Physical gold is the traditional form of gold owned directly by the buyer, be it jewellery, bars, coins, etc.
Why Physical Gold Still Matters:
- Tangible asset you can hold and use
- Highly preferred during weddings, gifting, and festivals
- Universally accepted and instantly recognisable
- No reliance on digital platforms or apps
However, physical gold also comes with additional costs and responsibilities which investors sometimes overlook.
Comparison: Digital Gold vs Physical Gold
Below is a clear comparison to help you understand their differences:
| Feature | Digital Gold | Physical Gold |
| Purity | Always 24K (99.9%) | Varies, may include impurities in jewellery |
| Buying Cost | No making charges; minimal fees | Making charges + wastage may add 5–15% |
| Storage | 100% secure, insured vaults | Must arrange your own storage |
| Liquidity | Instant buy/sell at market price | Depends on jeweller; resale may deduct charges |
| Minimum Investment | As low as ₹10 | Requires larger amounts |
| Risk | No theft risk | Risk of theft/damage |
| GST Impact | 3% GST on purchase | 3% GST + making charges on jewellery |
| Usability | Investment-focused | Can be worn or gifted |
Digital gold removes many limitations of physical gold, but physical gold still has emotional and cultural value.
When Digital Gold Is Better for You
Digital gold is a smarter choice if you:
✔ Want to invest, not purchase wearable gold
✔ Prefer small-ticket or regular SIP-style investing
✔ Want instant liquidity and easy tracking
✔ Don’t want to worry about safety or storage
✔ Need guaranteed purity without hidden charges
✔ Want to diversify your savings with minimal effort
For long-term wealth-building, digital gold investment offers more flexibility and cost-effectiveness.
How to Start Investing in Digital Gold with FatakPay
Investing in digital gold on FatakPay is simple, secure, and accessible for everyone:
Steps:
- Download the FatakPay App
- Go to the Digital Gold section
- Enter your amount (start from as low as ₹10)
- Buy instantly at live market rates
- Track your holdings anytime in the app
FatakPay provides seamless transactions, transparent pricing, and a user-friendly platform, ideal for modern investors.
FAQs
1. Which is better: digital gold or physical gold?
If your aim is investment, digital gold is more cost-effective and convenient. If you need gold for wearing or gifting, physical gold is suitable.
2. Is digital gold safe?
Yes. It is backed by real physical gold stored in insured vaults.
3. Can digital gold be converted into physical gold?
Some platforms allow you to convert it into coins or bars for delivery.
4. Is digital gold investment in India popular?
Yes, especially among young investors and people seeking low-entry, flexible investments.
5. Does digital gold have making charges?
No, unlike jewellery which includes making and wastage charges.
