Paper gold is the trading of gold futures. Compared with the trading of physical gold, as the name implies, the former can't trade in kind, but electronically. At the same time, the price of paper gold is mainly used to express the possible physical price of gold in the future, while physical gold is only the real-time price.

As an investment, paper gold is convenient to trade, and there is no need for gold reserves at hand. The investment risk of physical gold is much lower than the former, and the return is correspondingly lower.

The turnover cost of physical gold is lower.