Gold prices recently experienced a slight correction, but investors are still advised to carefully understand the characteristics of each gold investment product before making investment decisions, whether in physical gold bars or digital gold.
Based on Trading Economics data on Monday (June 1) at 11:50 WIB, spot gold prices stood at US$4,511 per troy ounce. The price declined by 1.15% over the past week and slipped 0.15% compared to the previous month.
Meanwhile, in Indonesia’s domestic market, certified Antam gold was priced at Rp2,799,000 per gram, while the buyback price reached Rp2,609,000 per gram. This means the spread between the selling and buyback prices stood at Rp190,000 per gram, or around 6.79%.
Permata Bank Chief Economist Josua Pardede said physical gold bars remain attractive for medium- to long-term investment purposes. Gold is widely considered an effective hedge against inflation and economic uncertainty while also helping investors preserve wealth during periods of global geopolitical instability.
However, Josua noted that physical gold may not be suitable for short-term investors. The relatively wide spread between purchase and resale prices requires substantial price increases before investors can achieve a break-even point.
“Physical gold is more suitable for wealth preservation, long-term emergency funds, inheritance planning, or portfolio diversification with an investment horizon of at least three to five years,” Josua told Kontan on Friday (May 29, 2026).
He explained that investors who actively trade in and out of the market may face lower investment efficiency. In addition to the wide spread, storage costs, risks of physical asset loss, and taxation factors could reduce overall investment returns.
On the other hand, Josua believes digital gold offers greater flexibility for retail investors. Digital gold allows investors to buy in smaller amounts, process transactions more quickly, and enjoy better liquidity compared to physical gold.
In addition, investors do not need to worry about physical storage risks, making digital gold ideal for gradual accumulation strategies.
“Digital gold is more attractive for investors who prioritize flexibility, low initial capital, and transaction convenience,” Josua said.
Despite its advantages, Josua reminded investors to pay close attention to security aspects before purchasing digital gold. Investors should ensure that service providers have official licenses, sufficient physical gold reserves, and transparent storage and redemption systems.
According to Josua, choosing the right gold investment instrument ultimately depends on each investor’s financial goals. Physical gold is better suited for those seeking long-term asset protection, while digital gold can be a more flexible and liquid investment option.
