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Bullion Investment Opportunities in London: A Brief Overview of the Advantages of Holding Physical Gold over Digital Gold

Published by Tavex Analysts in category Tavex News on 31.01.2023
Gold price (XAU-GBP)
1,901.20 GBP/oz
  
+ GBP25.44
Silver price (XAG-GBP)
24.79 GBP/oz
  
+ GBP1.45

Physical gold has several advantages over a digitalized version. One of the main advantages is that it is a tangible asset, which means it can be held and stored in a safe place.

You can keep it in a safe deposit box, bury it in your backyard or even carry it with you if you want to. This physicality also means that it is not subject to the same kind of cyber threats that digital assets are. For example, digital gold can be stored in digital wallets or on digital exchanges, which are vulnerable to hacking and data breaches. Physical gold, on the other hand, can be stored in a secure location, making it much harder for thieves to steal.

Another advantage of physical gold is that it has a long history of being a store of value and a hedge against inflation. Throughout history, gold has maintained its value, even during times of economic turmoil and currency devaluation. Digital gold, on the other hand, does not have the same level of historical precedent, and therefore may not be as reliable as a store of value.

Furthermore, physical gold can be traded and exchanged without the need for a third party intermediary. You can sell it to a gold dealer or even to another individual, and you don’t need to go through a bank or other financial institution. On the other hand, digital gold may require a trusted platform or institution to facilitate transactions, which could add an extra layer of risk.

In addition, physical gold does not require any kind of electricity to be stored, whereas the digital version requires electricity to be stored in digital wallets, exchanges and other platforms.

Overall, physical gold is considered to be more secure, stable and reliable than digital gold. It has a proven track record of maintaining its value over time, and it can be stored and traded without the need for intermediaries. While digital gold may have some convenience and accessibility advantages, physical gold remains the preferred option for those looking for a secure store of value. You can read a more detailed approach about the options of investing in gold here.

Gold price (XAU-GBP)
1,901.20 GBP/oz
  
+ GBP25.44
Silver price (XAG-GBP)
24.79 GBP/oz
  
+ GBP1.45

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