Disadvantages of Paper Gold
1.Lack of physical ownership: Paper gold does not give investors direct possession of the underlying asset, which may reduce the asset's value in times of financial distress.
2.Market risk: Various market dynamics can influence the value of paper gold, leading to potential fluctuations.
3.Liquidity Issues: Some forms of paper gold may face liquidity constraints, making it challenging to convert holdings into cash quickly.
4.Expense Ratio: Paper gold often incurs management fees and expenses, which can erode overall returns and impact the cost-effectiveness of the investment.
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