Paper gold is also called a gold certificate. In the process of paper gold trading, because there is no physical extraction and delivery between banks and individual investors, paper gold trading is essentially a warrant trading method. Using paper gold transaction can save the necessary storage fee, storage fee, insurance fee, appraisal fee and transportation fee in physical gold transaction, and reduce the extra cost in gold price. At the same time, paper gold trading can speed up the gold market trading, and the price mechanism of paper gold and physical gold trading is not the same.

Every purchase and sale of physical gold is accompanied by the delivery of physical gold, so investors must see clearly whether the gold content and weight of the purchased gold are up to standard or not. More importantly, because merchants will pay great attention to whether the gold has been damaged when they buy back the gold bars they sell, investors must take care of them when they take them home.

Paper gold is still more suitable for short-term speculation and gains income from the fluctuation of gold price.

The transaction cost per gram of investment gold bars is 5- 10 yuan, which is much higher than the paper gold and gold T+D business of banks, so investors who do not intend to hold gold bars for a long time can choose the paper gold business of banks.

Both of them have the same value, but the physical gold needs storage fee, storage fee, insurance fee, appraisal fee and transportation fee, which increases the extra cost in the gold price.