Investing in derivatives is different from investing in physical gold. Its value is on paper so it becomes a non-tangible asset. Managing securities or derivates can be tricky and speculative, so an investor will need to have full knowledge of financial securities. Trading in derivates can fetch you high ROI and at the same time, it can result in significant losses in case of an adverse price movement of gold. Gold as a paper currency is vulnerable to financial and systemic failures.