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Paper vs. Physical Gold: Which Is the Better Investment?

May 10, 2023

Thinking of investing money, but don’t know what to invest in? One of the number one rules when it comes to investing is to diversify. One of the best ways to do so is to invest in gold. Gold is a safe investment as it serves as a hedge against inflation. The good thing about this precious metal is that it comes in different forms. You can decide to invest in paper or physical gold. 

There’s a difference between these two types of gold, so it’s important you learn about them. Read on to learn which is the better type of investment. 

Physical Gold vs. Paper Gold

Let’s start the discussion by going over the differences between both types of gold. When you think about gold, the first thing that might come to mind is a bar of gold. Physical gold is gold that you can hold in your hand. 

Yes, it does include gold bars. Physical gold also includes bullion coins. These can vary in size and shape. 

Paper gold can come in the form of stocks and derivatives. This type of gold can also come in the form of exchange-traded funds and gold futures. 

Think of paper gold as a substitute for physical gold. It’s a way of investing in gold in an indirect manner. 

Pros and Cons of Physical and Paper Gold

Both forms of gold have their own pros and cons. Physical gold does hold intrinsic value, but paper gold doesn’t hold this type of value. The value of your paper gold investment can vary as it relies on the issuer. 

Physical gold can serve as a form of currency. You can use it to trade for other commodities. Should a paper currency collapse, people can turn to physical gold. 

You can buy gold and store it privately. Once you’re ready to part with it, you can sell it or decide to pass it down to your heirs or family members. 

If you buy a large amount of gold, you’ll have to find a safe place to store it. This can be a problem if you don’t have access to a safe or other secure storage methods. If you own paper gold, you can store it in an exchange or bank account. 

What to Invest In? 

When it comes to investing in gold, one can argue that physical gold is superior to paper gold. Physical gold is tangible. It has remained a reliable form of wealth over time. 

Now’s the Time to Invest in Gold 

You can rest assured that you’ll protect your investment portfolio if you invest in gold. Consider investing in physical gold. It’s a great way to avoid major risks as it’s a safe asset. 

Interested in buying physical gold? Contact us now to learn about the gold products we offer. You can purchase gold through us, so you can start investing in it today. 

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