Digital Gold : 2025 was a great year for gold investors. While the stock market remained weak for most of the year, gold prices continued to reach new highs. Investors also showed interest in digital gold. According to NPCI data, 940.5 million digital gold transactions took place this year. By November of this year, the total value of these transactions exceeded Rs 12,471 crore.
Very easy to invest
Investing in digital gold is easy. It allows you to invest in gold without purchasing physical gold. One reason for the growing interest among investors is that it is possible to invest with small amounts. Some platforms allow investing in digital gold for as little as Rs 10. Investors can buy and sell digital gold online from the comfort of their homes.
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These platforms provide convenience
Investors can invest in digital gold through platforms like Paytm, PhonePe, Google Pay, and Amazon. Jewelers like Kalyan Jewelers, Tanishq, and Malabar Gold & Diamonds also offer digital gold. These platforms purchase physical gold on behalf of investors and store it in secure, insured vaults. Investors can convert their digital gold into physical gold as needed.
Prices are not determined in the open market.
Shweta Rajani, head of mutual funds at Anand Rathi Wealth, said, “Unlike exchange-traded products, digital gold prices are not determined in the open market. When there are market fluctuations, the platforms increase the difference between the buying and selling prices or adjust the selling prices. This means that if investors want to sell, they may not get a good price.”
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SEBI has already alerted investors
In November of this year, SEBI cautioned investors about investing in digital gold. The regulator stated that it is not a regulated product like gold ETFs or sovereign gold bonds (SGBs). Therefore, investors do not enjoy SEBI protection. Since it is not a regulated product, its regulations lack transparency. This clarification from the regulator confirms that investing in it carries risks.
There are some charges on investments
If you want to invest in digital gold, you can do so through Paytm, PhonePe, or Google Pay. You’ll need to register on these platforms with a government ID and bank account. To purchase digital gold, you’ll need to pay the platform margin and 3% GST. For example, if you’re buying digital gold worth Rs 10,000, you’ll need to pay Rs 300 plus GST and Rs 300 as the embedded spread.
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When selling digital gold, the platform charges a spread (the difference between the purchase and sale price), which can be 2-3% or more. Conversion of digital gold into physical gold incurs additional making charges, delivery fees, and GST. Initially, investors are often unaware of these costs.