Digital Gold: Shiny on the Outside, Risky on the Inside!
Digital gold may look convenient, but it’s unregulated and risky—choose SEBI-regulated options like Gold ETFs for safer exposure.
Through the last decade, India’s fintech wave has brought many “1-tap” products — SIPs, rent payments by card, and even digital gold. The pitch was simple: Buy 24K gold instantly through your phone — ₹100, ₹500, or ₹10,000 — and it’ll sit in a vault “in your name.”
Sounds modern, right? But here’s the truth: digital gold isn’t regulated by SEBI, RBI, or any financial authority. Anyone can start an app, tie up with a vaulting partner, and sell you “gold.” If that company ever goes bust, your savings vanish with it — because it’s not held in your demat or backed by a depository.
In 2025 alone, UPI transactions in digital gold jumped from ₹760 crore in January to ₹1,180 crore by August (ET Wealth). But SEBI has now cautioned investors — reminding them that India already has regulated gold options like:
✅ Gold ETFs (via mutual funds)
✅ Electronic Gold Receipts (EGRs) traded on exchanges
✅ Gold derivatives on commodity markets
Let’s decode why digital gold may glitter but not guard your wealth:
You pay 3% GST upfront (it’s treated as a goods sale).
Each platform sets its own price; no standard NAV or daily valuation.
You lose another 2–3% in buy-sell spreads.
💡 Safer Path:
If you want gold exposure, opt for Gold ETFs — regulated, transparent, liquid, and stored securely in your demat under SEBI’s framework.
HDFC AMC, Nippon Life India, ICICI Prudential AMC – manage Gold ETFs.
MCX – facilitates gold futures and EGR trading.