Difference Between Online and Conventional Gold Investment
Referring to the discussion above, it is clear that if you invest in conventional gold or physical gold, you have to provide a safe or rent a safe deposit box as storage, of course this will be a bit of a hassle and require additional costs. In principle, both online gold investment and conventional gold investment provide benefits. But there are some differences that you should consider before deciding what form to invest in gold.
Reporting from Business Finance, here are the differences between online gold investment and conventional gold investment:
Purchase Value
The most significant major difference is the purchase value. Conventional gold or physical gold will refer to the weight of the existing gold print, but online gold or digital gold you can buy for any amount. For example, the purchase of physical gold at Antam can be done with the smallest unit, namely 0.5 grams, then increase to 1 gram, 2 grams to the highest gram.
The price of gold per day is IDR 967,000 per gram. Buying gold online or digitally can be done with any nominal, according to the budget you have. You can even buy gold online with nominal starting from IDR 50,000 at Pegadaian.
Purchase time
Buying digital gold online can be done anytime and anywhere. You can buy it over and over again. For example, you buy digital gold within 2x or 3x a week, it doesn't matter if you have the funds. Unlike conventional gold or physical gold, usually you will buy it for a certain period and for a long time, such as buying it when the gold price drops and selling it when the gold price soars up.
Storage fee
The significant difference is that there is storage cost. If you buy precious metal or physical gold and then you do not have a safe, there is no other choice but to leave it at the company where you bought the gold and of course there are additional costs. For information, the cheapest price to rent a safe deposit box is IDR 200,000 per year.
The costs you incur include protection against gold from various risks, such as loss, fire or damage. You can also store it independently at home, but at your own risk. Everything has its own risks, it comes back to you and the budget you have.
Investments in online or digital gold also have storage costs, just like conventional gold. Like Pegadaian for example, Pegadaian provides an online gold investment deposit fee of IDR 30,000 per year, with free fees in the first year. In addition, online or digital gold has a hidden fee, namely the deposited balance cannot be withdrawn. For example, Pegadaian, sets the deposit balance at 0.1 grams.
For you to know that gold can protect against inflation and currency depreciation because of its nature which is a safe asset or safe haven. It is not surprising that many young and old people use this precious metal or gold as a deep-rooted investment instrument compared to other investment instruments.
