May 18, 2023



As the world transitions further into the digital age, the age-old discussion of physical gold versus digital gold is gaining traction. While physical gold has been a traditional form of accumulating wealth, digital gold, with its numerous advantages, is becoming increasingly popular among the tech-savvy crowd. The question is, should you go for physical gold or is it time to turn digital?

What is Digital Gold?

Digital gold represents the ownership of physical gold in a digital format. It's a modern and innovative way to buy, sell, and hold gold. When you purchase digital gold, you're buying a portion of physical gold, which is usually stored in a secure vault by the provider. Each unit of digital gold corresponds to a certain amount of physical gold, which can be redeemed or sold back at any time.

Benefits of Buying Digital Gold

Liquidate in Seconds

One of the biggest advantages of digital gold is the ability to buy or sell it instantly, from anywhere in the world. You can easily liquidate your digital gold holdings and have the cash in your account in a matter of seconds. This instant liquidity is a significant advantage over physical gold, which often requires a physical transaction.

Buy at Any Quantity

With digital gold, you can buy as little or as much as you want. There's no minimum purchase requirement. This flexibility makes it accessible to everyone, regardless of their financial situation. It allows you to start small and gradually build up your holdings.

Safe and Secure

Digital gold providers use secure technologies to ensure the safety of your gold. Most providers use blockchain technology, which is a decentralized and transparent system, making it difficult for hackers to breach. Your gold is also insured, which means if anything happens to the provider, your gold is still safe.

Inexpensive Process

Buying digital gold is usually cheaper than buying physical gold. There are no storage fees or insurance costs because the provider takes care of these. Additionally, you can often buy digital gold at a lower price than physical gold because it's not subject to the same manufacturing and distribution costs.

Benefits of Buying Physical Gold

Immediately Accessible

Physical gold is tangible and can be held, which is a comfort for many people. It is immediately accessible in the sense that you can physically hold it in your hands, store it where you want, and use it when you want.

Store of Wealth

Gold has been considered a store of wealth for thousands of years. It is a tangible asset that can't be erased by a computer glitch or a system failure. In times of economic instability or crisis, physical gold can provide a sense of security.

Historically Appreciating in Value

Physical gold has a long history of appreciating in value over time. Although there are fluctuations, over the long term, gold has generally held its value or increased. This makes it an attractive purchase for those looking for a long-term hold.

Inflation-Proof Purchase

Physical gold is considered an inflation-proof purchase. It tends to hold its value even in times of inflation, making it a safe haven during such periods. This attribute of gold is particularly important in economies experiencing high inflation rates.

Hedge Against Uncertainty and Market Chaos

Physical gold has often been seen as a hedge against uncertainty and market chaos. In times of geopolitical or economic instability, gold prices often rise as people seek safe haven assets.

New Generation Gold Buying Apps

A new generation of gold buying apps is making it easier than ever to buy both physical and digital gold. These apps offer a range of services, from buying and selling gold to storing it securely. They also provide valuable information about the gold market, such as live gold prices, market trends, and more.

Physical Gold vs ETF: Which is a Better Purchase?

An ETF, or Exchange-Traded Fund, is a type of security that tracks an index, sector, commodity, or various assets but can be bought or sold on a stock exchange the same way a regular stock can. A Gold ETF provides a way to gain exposure to the price of gold without having to own the physical gold itself. It's a form of digital gold, but it's important to understand that owning shares in a Gold ETF is not the same as owning physical gold.

Pros and Cons of ETFs

One significant advantage of Gold ETFs is their simplicity. Buying a Gold ETF is as straightforward as buying any other share on the stock market. You don't have to worry about storing or insuring the gold because the ETF provider takes care of it. Additionally, Gold ETFs can be traded at any time during market hours, providing liquidity and flexibility.

However, there are also drawbacks to Gold ETFs. Even though you have exposure to the price of gold, you don't actually own the physical gold. If the provider of the Gold ETF faces financial difficulties, your shares may be at risk. Additionally, Gold ETFs come with management fees that can eat into your returns over time.

Factors That Affect Physical Gold and ETF Prices

The price of both physical gold and Gold ETFs is primarily driven by the global gold spot price. However, several other factors can affect the prices. These include the strength of major currencies (especially the US dollar), global economic stability, interest rates, and market demand for gold.

For Gold ETFs, the price can also be influenced by the management fees charged by the ETF provider. If these fees increase, the return on the ETF might decrease, affecting its price.

Buy Physical Gold With Matador

Whether you should buy physical gold or digital gold depends on your personal preferences and circumstances. Each option has its own advantages and disadvantages. If you value the tangibility of physical gold and are willing to take on the responsibility of storing and insuring it, then physical gold might be the right choice for you. On the other hand, if you value convenience, flexibility, and liquidity, then digital gold might be a better fit.

Navigating the traditional route of gold procurement often presents hurdles like lengthy delivery periods, costly storage expenses, and an unwieldy selling process. However, the rise of the digital age and the advent of technology are reshaping the gold acquisition landscape, making it a more streamlined and user-friendly experience. Enter Matador - a groundbreaking platform that brings the gold market to your smartphone, simplifying the entire process.

Start your gold buying journey with a minimum purchase of 1g through Matador, a platform that caters to both the seasoned gold connoisseur and the novice looking to diversify their assets. With the Royal Canadian Mint providing a secure home for your gold, you can rest assured of its safety and easy accessibility. Should you wish to take possession of your gold physically, a simple tap on your screen ensures it's dispatched to your designated location.

In collaboration with a host of certified gold vaults and esteemed Canadian collaborators, Matador assures that every transaction stands up to the most stringent quality and security benchmarks. As we observe an encouraging outlook for gold prices in 2023, it's an opportune moment to leverage this state-of-the-art platform and embrace the convenience of buying gold from your smartphone.

The future of gold buying is here, and it's digital. Enroll yourself on the Matador waitlist today or download the app to kickstart your journey.

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