Not all gold is held the same way. Today, buyers can hold physical gold themselves or in a vault, or buy gold through online platforms. But an online gold product doesn't always mean you own specific metal. The key lies in the type of arrangement — and what exactly you own.
Physical Gold Held Yourself
Pros
- Tangible Ownership: Gold bars or coins in your own safe — no intermediaries.
- Independence: In your possession, it does not depend on a bank or provider.
- Universal Recognition: Easy to value globally, especially standard bars.
Cons
- Security & Storage Risks: Requires secure storage, discretion and possibly your own insurance.
- Liquidity Lag: Selling can take days and often involves dealers or banks.
- Retail Markups: Premiums on coins and small bars are often high.
Gold Bought Online: Convenience and Differences
Gold bought online is ownership represented in an online account — but what sits behind that record varies widely.
1. Pooled or Paper Gold (Price Exposure)
- These include gold ETFs, certificates, and some app-based platforms.
- You don’t own specific bars. Instead, you have exposure to gold’s price.
- Risk: You may be a creditor rather than an owner of specific metal. If the provider fails, your claim may be at risk.
2. Allocated Gold Held Online
- Your holding is recorded against specific physical bars held in a vault.
- Your metal is recorded separately from the provider’s own assets.
- Example: EONA records each holding against specific bars stored with Loomis in Dubai, with the convenience of an online account.
The EONA Approach
At EONA, online doesn’t mean abstract. Every gram of gold or silver you buy is allocated to specific bars, stored with Loomis in Dubai. You can view your holding and sell it back to EONA through your account. EONA does not currently offer delivery or collection of physical metal.