Gold & Digital Gold: How Investors are Hedging Inflation in New Ways

Why Gold Still Reigns as the Ultimate Hedge

Gold has historically been the go-to asset during inflationary periods. Some key benefits include:

• Value Preservation: Gold holds intrinsic value and often rises when currencies lose strength.
• Liquidity: Easily bought and sold worldwide.
• Crisis Hedge: During economic uncertainty, investors flock to gold as a safety net.

Digital Gold: The Modern Investor's Choice

The digital era has introduced a new way to own gold—without physical storage issues. Digital gold allows investors to buy, sell, and hold gold online in small fractions.

Benefits of digital gold include:

• Accessibility: Start investing with as little as ₹100.
• Convenience: No need for lockers or insurance.
• Transparency: Backed by physical gold stored in secure vaults.
• Liquidity on Tap: Buy or sell anytime, anywhere.

Gold vs. Digital Gold: Which Should You Choose?

• Traditional Gold: Best for those seeking tangible assets, jewelry, or long-term physical holding.
• Digital Gold: Best for those who value flexibility, low entry barriers, and tech-driven investments.

Smart investors often use both—physical gold for long-term stability and digital gold for short-term convenience.

The Role of Gold in Your Portfolio

With inflation concerns looming globally, both gold and digital gold play an essential role in a diversified portfolio. Financial experts and platforms like Invest Financial suggest allocating 5-15% of your portfolio to gold-based assets to hedge against inflationary risks.