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What does "Virtual Gold" mean?

Published by Roland Uriko in category Economy on 13.01.2022
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You may have heard people talk about physical gold and virtual gold and wondered if one was better or what the difference was?

If the meaning of physical gold seems clear, it can be confusing how gold can be virtual and what part of gold is still considered.

Gold like any other asset class

No, virtual gold is not a picture of a box of gold on your computer or smartphone screen. Virtual gold is the so-called “paper gold”, or exchange-traded gold fund units (ETFs), gold mining shares or other instruments that are not physically tangible. This means that gold can be traded on the internet like any other asset class without moving from your couch.

At first glance, this may seem like a safer and more convenient way to purchase gold, especially since a large proportion of transactions have moved to the web. However, since one of the advantages and characteristics of physical gold is the ability to realize it quickly or to take it with you, not being affected by third parties, the property in the owner’s possession is, in any case, a safer and more secure way to preserve and secure the value of his property.

But is it still there?

But is gold still like any other asset class? It’s worth thinking about the nature of gold here. At the same time as fiat currencies are printed if the necessity arises and new participants are added to the stock exchange, gold remains unchanged in quantity. Yes, gold objects are still melted down and poured over, but gold’s value has certainly not diminished over time – not even emotional value.

The fact that gold cannot be generated is one of the most important reasons to prefer physical gold. As mentioned, by owning physical gold, you are independent of third parties or institutions. There is also no need to worry about a potential transaction: gold is universally accepted everywhere by everyone. If necessary, it can be sold quickly and conveniently, even in Tavex offices, for example.

The choice is yours

When choosing a suitable product to buy, it is worth considering the special and unique properties of gold. If virtual gold is about financial instruments acquired through agreements that allow you to own some of the gold at the other end of the world, then the existence and value of physical gold don’t justify itself. Purchasing physical gold bullion in the form of a gold coin or bar is and will be the safest way.

So it’s worth being smart and thinking: if you had to choose between something that could lose its value in a touch of a button or look at what exists in physical form and that’s value hasn’t diminished over millennia. Something so necessary in everyday life and possible to realize immediately, which one would you choose? Find your physical gold here and get it delivered the next day!

Gold price (XAU-GBP)
GBP/oz1,00
  
- GBP0,00
Silver price (XAG-GBP)
GBP/oz1,00
  
- GBP0,00

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