1 week Ago
Nearly 15 million Indians have joined the digital gold buying spree over the past six months, as gold prices surged close to ₹1 lakh per 10 grams (or ₹1 crore per kilogram), says Gaurav Mathur, founder of SafeGold — a digital platform that allows users to buy, sell, and receive vaulted gold in small ticket sizes, 24x7. SafeGold also powers the backend operations for brands like Tanishq, Amazon Pay, PhonePe, and Tata Neu. With gold prices hitting all-time highs, investors are looking for smarter, more affordable ways to own the precious metal.
One such option is digital gold, where you can start investing with as little as ₹10. Buyers own a fractional quantity of gold and can continue accumulating until they have a substantial holding. Industry estimates suggest that around 70–80 crore Indians have now invested in digital gold through apps.
Although 100–150 apps offer digital gold purchases — including jewellers — only 4–5 major players like MMTC-PAMP, Augmont, and SafeGold manage most of the backend operations. Typical investment amounts range between ₹1,000 to ₹2,000, and about 20–25 tonnes of gold have been accumulated through this method so far. According to Mathur, nearly 40% of investors continue making small investments for 3–4 years before eventually converting their accumulated digital gold into jewellery.
How digital gold works? When you buy digital gold, it is backed by physical gold stored securely in a vault. Investors can sell even small holdings (starting from ₹10 worth) and get the proceeds transferred to their bank accounts. However, to convert digital gold into physical gold, a minimum holding equivalent to half a gram is usually required.
Some platforms may charge delivery or making charges during physical redemption. Earlier, digital gold primarily attracted millennials, but with gold prices soaring past ₹80,000 per 10 grams, older investors have also started seeing digital gold as a viable alternative to owning physical gold. Over the past year, gold prices have jumped nearly 45%, further boosting interest.
Buying digital gold is simple — users can invest anytime, from anywhere, by downloading an app, setting up an account, choosing the amount of gold, and completing the payment. Investors can track the value of their holdings as prices move. Why digital gold is gaining popularity The rising popularity of digital gold is driven by several factors: Low entry barrier: Small-ticket investments make it accessible to all.
No worries about storage or security: Vaulting and insurance are handled by the platform. Convenience: Like a Systematic Investment Plan (SIP) in stocks, investors can steadily accumulate gold over time. However, one limitation remains — digital gold is not regulated directly by SEBI or RBI.
Despite this, leading platforms operate under strict industry standards and engage reputed custodians to ensure safety and transparency for investors..
