InvestorQ : What is better way to hold gold; the physical mode or the electronic mode?
Arti Chavan made post

What is better way to hold gold; the physical mode or the electronic mode?

Answer
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Aditi Sharma answered.
1 year ago


In the past, one had to hold gold only in physical form. Protecting the gold had a cost and hence nobody was too keen to store gold. Things have changed in the last few years. Today you can hold gold in the form of Gold ETFs. These exchange traded funds (ETFs) actually hold gold in their vaults and issue units against this gold holding. The price of these gold units will move with the price of gold. Since you can hold these ETFs in demand format, there is not risk of theft, pilferage or loss of value. Currently, the Indian government also permits you to hold gold in the form of gold bonds where you can also earn a nominal rate of interest over and above the appreciation in price of gold.