Comparative Study of Digital Gold and Physical Gold as Investment Options

Author

M.Bhagiradha, Dr. B. Ratnavalli


Abstract

 This paper compares digital gold and physical gold as investment options, looking at cost, liquidity, purity assurance, trust and who is adopting each. The study is a cross-sectional survey of 100 respondents (students, salaried employees, business owners and others), analysed with simple percentages and mean agreement scores on a five-point Likert scale. Most respondents were young (65% aged 35 or below) and lived in urban or semi-urban areas (83%).

Digital gold was the most preferred single format (38%), followed by holding both (31%) and physical gold (24%). Respondents agreed most strongly that digital gold is convenient, lets them invest small amounts and removes storage worries (all above 80%). Trust was the weak spot: only 51% trusted digital platforms, and 74% acknowledged platform and counterparty risk. Physical gold kept a strong cultural place (90% agreement), but many saw making charges (81%) and storage costs (68%) as a burden.

The study concludes that a mix of the two works best for retail investors: digital gold for flexible, gradual buying and physical gold for cultural and long-term security needs, as long as platform regulation and custody transparency improve.



Keywords

Digital Gold; Physical Gold; Gold Investment; Investor Preference; Making Charges; Liquidity; Counterparty Risk; Retail Investors.



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