Paper Gold VS Physical GOLD

1) Definition

Paper GOLD : Unallocated  *Represent a claim on fixed quantity of gold.

Physical GOLD : Allocated  *gold deposited under a safe-keeping or custody arrangement.

2) Ownership

Paper GOLD : The account holder does not hold title to physical gold.

Physical GOLD : A specific and uniquely numbered phsical piece of gold.

3) Legal Ownership

Paper GOLD : The account holder does not have legal ownership of the physical gold but is an unsecured depositor.

Physical GOLD : The owner of allocated gold keeps legal ownership over the allocated gold even if it is deposited with a custodial facility provider.

4) Economic System

Paper GOLD : The account holder is a creditor to the account provider, and so in the economic system this asset has a counterpart liability.

Physical GOLD : It remains an asset wihout a counterpart liability.

5) Service Provider

Paper GOLD : Investment accounts such as 'P' Bank , 'M' Bank.

Physical GOLD : Public Gold, GSR, GCP, Sri Ayu etc.