Physical or Paper Gold? Why?

[sillug]

Some people says physical gold is more important, I should have physical instead of paper gold. But I dont understand why.

I trade easily in paper gold, spread is low so I lose less while trading. Banking system is powerful in my country, Turkey.

Physical gold can be stolen easily, I dont prefer having gold in my home, it is so dangerous imo, thieves are everywhere in my hood

What do you think?

edit: Guys I have read all your comments but still not satisfied. You all say that paper gold is not gold itself, just a promise; so having physical gold is more trusting even there is a possibility of theft.

Maybe I understand something different when saying paper gold.

Gold account at banks such as HSBC, BNP Paribas or ICBC is really less safer than keeping the gold at home?? And even if these accounts are guaranteed by the government up to $30k in each account?

I think gold is a sure bet, indeed, it is stable. It is therefore very useful to protect its resources from financial crises.

[1715110583]

1715110583

[1715110583]

1715110583

[CyberKuro]

Physical Gold has it's own benefit which paper Gold can not match. Like quick liquidity. If you possess gold at your home then in case of emergency you could readily liquidate gold and it is globally accepted.
* It is true that physical gold needs protection, and you're responsible for that. So you take all measures to protect it (insure it).
* Physical gold could be carried in form of jewelery as well.
* Purchasing Gold from GoldSmith could be pain in countries like India and customer could feel exploited.

Paper Gold solves problem of security. When big companies are offering paper gold they back up it as well.
* Paper gold is much better for investment purpose. easy to purchase and desolve as well.
*  you could access your paper gold via internet(from anywhere).
* You don't have to worry much if you have invested with reputed company.

Both of it has advantages and disadvantages like mentioned above which user should know and aware about that.
Depends on your purposes to purchase gold, whether to store it at home (backup plan, long term investment or jewelry)
Or purchase paper gold for trade purpose and safety way than put a huge amount of gold at home and the risk of robbery.
I prefer to purchase physical gold and save it at home in case of emergency, just in case for something I need.

[Sithara007]

I think gold is a sure bet, indeed, it is stable. It is therefore very useful to protect its resources from financial crises.

Gold is reliable. But I will not claim that it is a 100% sure bet. Just because during the last financial crisis it performed well, we can't expect gold to remain stable during the next financial crisis. What if some central bank dumps all of its gold in to the market? The prices can go below $1,000 per oz.

[joae1975]

There is no such thing as paper gold (anymore), so I don't even know what this thread is about?

[wxa7115]

Physical gold any day because I could test to see its authenticity and carats unlike paper gold, I can also feel it in my palms . It is malleable and ductile and also a heavy metal with a lot of uses and properties. Physical gold is not traded in futures market unlike paper gold.

I don't like paper gold, but with paper gold you don't have to test for any of that since it is not physical gold, I think physical gold is way better if you are in gold for the long term, but if you want to buy gold and then sell it in just a few weeks or months then paper gold seems like a better option.

[darthmaul]

Indeed why risk physical gold investment as it is not safe in current world. Also, digitalisation is increasing a way lot faster than any other era. Physical gold was past days challenge where Gold Rush was the only thing on peoples mind. Today we have moved to futuristic world which knows only about digital trades and the physical one. Keeping gold is good but not safe though. Having it in bonds safe with banks would be preferable and less chargeable. You can also trade it in few minutes in the market as physical gold may need to be tested before it gets sold. So you can see pros and cons about your question, and personally I would select paper gold.