Investing in gold on the auspicious occasion of Diwali is traditionally considered very auspicious, but this year there are questions in the minds of investors between both digital gold and physical gold as to which option will be more suitable. Digital gold is a modern and simple way to buy small amounts of gold and keep it safe online. Whereas physical gold includes gold jewellery, coins and bars, which give you appreciation and cultural importance.
The biggest feature of digital gold is its ease and liquidity. To invest in it, one takes the help of mobile app or website, and you can buy or sell it anytime. There is no worry about theft and storage, because your gold remains safe in certified vaults. Minimum investment in digital gold can start as low as Re 1, making it accessible to common investors.
At the same time, there is a risk of storage in physical gold, and to keep it safe, it requires a locker or a safe place in the house. Apart from this, there is also 3% GST on physical gold and making charges on purchasing jewellery, which makes its price a bit expensive. Physical gold has high cultural and emotional significance, especially at weddings and traditional occasions.
From a financial perspective, digital gold is more transparent as its prices are updated in real-time, and there are no making charges. Whereas the price of physical gold includes dealer premium and making charges, which can affect investment returns.
If investors want convenience, small investments, and online security, digital gold is a better option. At the same time, if you want gold for ownership and cultural significance, then buying physical gold would be appropriate. It would be wise to choose the right option for Diwali 2025 investments based on your preferences and needs.