Digital Gold vs Physical Jewellery: Key Differences

People who want to own gold now have more choices than coins and jewellery. Digital gold lets you buy small amounts online and hold them as a balance. Jewellery gives you something to wear. They are not the same product, and the right choice depends on what you want from gold.

What each one is

• Digital gold is a record of gold you own, held by a provider. You buy and sell in small amounts, and the provider stores the metal.
• Physical jewellery is gold shaped into something you can wear. You hold it yourself.

Compare the main points

Cost

Digital gold is priced by weight at a rate quoted by the provider, with a spread between buying and selling prices, and taxes on purchase. Jewellery adds making charges and GST. See how jewellery price is calculated step by step and gold making charges explained.

Use

Digital gold is a holding. You cannot wear it, though some providers let you convert it into coins or jewellery. Jewellery is both a possession and something worn.

Storage and safety

Digital gold has no storage burden for you, but you rely on the provider's systems and storage. Jewellery needs your care and a safe place. See keeping jewellery safe at home and in lockers and jewellery insurance in India: what to know.

Small amounts

Digital gold suits regular small purchases. Jewellery generally requires a larger single purchase, although a small piece is possible.

Purity and proof

Digital gold providers describe the purity of the underlying gold. Jewellery carries a BIS hallmark and HUID. See is hallmarking mandatory for gold jewellery in India.

Questions to ask about digital gold

• Who holds the gold and where? Ask about vaulting and audits.
• What are the spreads, fees and taxes?
• How do I sell, and how fast is payment?
• Is the provider regulated, and by whom? Rules for digital gold have been evolving, so ask the provider what regulation applies to its product. Do not assume that a bank-like protection applies.
• What happens if the provider fails?

Questions to ask about jewellery

• What are the making charges?
• What is the exchange or buy-back policy? See old gold exchange: how it works and what to check.
• Is the piece hallmarked? See what a HUID is and how to verify it.

Which suits which goal

• To wear and enjoy: jewellery.
• To save gradually in small amounts: digital gold may suit, with a clear understanding of its risks.
• To give a gift with meaning: jewellery.
• To hold gold simply: coins or bars, with proof of purity. See what to buy on Dhanteras: coins or jewellery.

Neither promises a profit

Gold prices rise and fall. Neither digital gold nor jewellery is a promise of profit. Decide based on your needs, and do not invest what you cannot afford to leave alone. This article is general information, not financial advice. For decisions about saving and investing, talk to a qualified adviser.

Digital gold with us

We offer a way to buy gold digitally. Read the terms on our digital gold page before you decide.

Common questions

Can I convert digital gold into jewellery? Some providers allow it. Ask what charges apply.

Is digital gold the same as a gold ETF? No. They are different products with different rules.

Which is cheaper? It depends on the spread, fees, making charges and taxes. Compare the full cost.

Compare in person

Browse our diamond jewellery or book an appointment to compare options.