Gold investment remains one of the most popular choices in Indonesia and globally due to its ability to preserve asset value amid inflation and economic uncertainty. As technology evolves, gold investment is no longer limited to physical gold, such as bars or coins, but also includes digital gold that can be purchased online. Each option has its own advantages and disadvantages that should be understood before determining an investment strategy.
What Is Physical Gold?
Physical gold refers to gold in tangible form that can be seen and touched directly, such as gold bars, coins, or jewelry. This form has long been recognized as a conventional investment instrument and is often used as an inheritance asset or a tangible store of wealth.
Advantages of Physical Gold
- Direct Ownership: Investors hold gold physically without relying on digital systems.
- Tangible Asset: Provides a sense of security since it can be physically stored.
- Suitable for Inheritance: Easily passed down directly to heirs.
- Portfolio Diversification: Known as an inflation hedge and helps reduce overall portfolio risk.
Disadvantages of Physical Gold
- Storage and Security Costs: Requires secure storage such as a safe or safety deposit box, which may incur annual fees.
- Risk of Loss or Theft: Physical storage carries security risks if not properly managed.
- Higher Initial Capital: Minimum purchase quantities (e.g., 0.5–1 gram) require relatively larger funds.
- Relatively Less Liquid: Selling transactions may take longer compared to digital gold.
What Is Digital Gold?
Digital gold is gold ownership recorded electronically, typically through an investment app or platform. Although it cannot be physically touched, its value follows global gold prices and is often backed by physical gold stored by the service provider.
Advantages of Digital Gold
- Low Initial Capital: Investors can start with very small amounts, sometimes from just tens of thousands of rupiah.
- Practical and Flexible: All transactions can be done online anytime without visiting a physical store.
- High Liquidity: Buying and selling processes are faster and easier compared to physical gold.
- No Physical Risk: No risk of physical theft since gold is stored digitally by the platform provider.
Disadvantages of Digital Gold
- Not Physically Held: Investors cannot hold gold in physical form unless it is converted.
- Platform Risk: Investment security depends on the platform's credibility and regulatory oversight.
- Administrative Fees: Some platforms charge storage or annual administration fees.
- Requires Internet Access: Transactions depend on internet connectivity and understanding of the investment app.
Comparing Physical and Digital Gold
In terms of ownership, physical gold provides direct possession that can be stored personally. Investors can physically hold gold bars or coins. In contrast, digital gold represents electronic ownership recorded on a platform, meaning it cannot be physically touched.
Regarding initial capital, physical gold generally requires a larger investment due to minimum gram purchase requirements. Digital gold is more flexible and beginner-friendly since it can be purchased in small amounts and accumulated gradually.
In terms of liquidity, digital gold tends to be superior. Buying and selling can be done anytime via an app with relatively fast processing. Physical gold can still be sold easily, but typically requires visiting a gold shop or authorized institution.
Risk is another key differentiator. Physical gold carries the risk of loss or theft if not securely stored, often requiring additional storage costs. Digital gold eliminates physical risks but depends heavily on the platform’s credibility and security system.
Finally, from an accessibility standpoint, digital gold is more practical because transactions are fully online, whereas physical gold usually requires in-person transactions.
Ultimately, the choice between physical and digital gold depends on investment goals, liquidity needs, and personal preferences in managing assets.
XAUt (Tether Gold) as an Alternative
Beyond traditional physical and digital gold, tokenized gold such as XAUt (Tether Gold) offers a hybrid approach that combines gold stability with digital convenience.
XAUt is a digital token that represents 1:1 ownership of physical gold stored in secured vaults. With XAUt, investors gain direct exposure to gold prices without handling physical storage. Some of its advantages include:
- Fast and Flexible Transactions: Can be bought, sold, or transferred digitally anytime without logistical hassle.
- Lower Costs: No need for physical storage or insurance costs like gold bars.
- High Liquidity: Similar to crypto assets, XAUt can be traded quickly.
- Transparency: Ownership and asset movements can be tracked digitally.
Some investment platforms also offer features such as “Flexi Earn” for XAUt, allowing investors to hold tokenized gold and potentially earn annual returns.
How to Buy XAUt on Mobee
Follow these steps to purchase XAUt through the Mobee app:
- Register and Verify: Sign up and complete KYC (account verification).
- Deposit Funds: Deposit funds into your Mobee wallet.
- Open Trade Menu: Access the Trade menu in the app.
- Select XAUt: Search for XAUt in the asset list.
- Choose Trading Pair: Select a trading pair such as XAUt/USDT.
- Select Order Type:
- Market Order: Buy at the current market price.
- Limit Order: Set your preferred price.
- Enter Amount: Input the amount of XAUt you want to purchase and review transaction details.
- Confirm: Click “Confirm” to complete the purchase.
Once successful, your XAUt balance will appear in your Wallet.
Which Is Better for Investment?
There is no single answer that fits everyone. If your goal is long-term wealth preservation that can be inherited and physically held, physical gold may be more suitable. If you prioritize convenience, flexibility, and lower entry capital, digital gold or tokenized gold like XAUt may be a better option.
For optimal strategy, many investors combine both physical and digital gold to gain long-term stability while maintaining liquidity and ease of transaction.
Conclusion
Physical and digital gold both have their place in modern investment strategies. Physical gold excels in tangible ownership and long-term value preservation, while digital gold offers accessibility and lower entry costs. Alternatives like XAUt provide additional options for investors seeking to combine gold’s stability with digital efficiency.
The best choice ultimately depends on your investment goals, risk profile, and long-term financial strategy.
Sources:
Physical gold vs. digital gold: What to know. Accessed in 2026. CBS News.
Physical vs. Digital Gold Investment: Diversifying with Digital and Tangible Assets. Accessed in 2026. Royal Mint.
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