Digital gold, explained honestly
What it is, what it is not, and the risks you should understand before you save your first rupee.
What digital gold is
Digital gold lets you buy 24K gold online in amounts as small as a few rupees. Your purchase is recorded in grams against your name, the physical metal is held with the provider's custodian, and you can sell it back or ask for delivery as coins when you have enough.
What digital gold is not
This is the part most platforms skip, so we will be direct about it. In November 2025 SEBI issued a public caution stating that digital or online gold products are different from SEBI-regulated gold products and sit outside SEBI's securities-market regulatory framework. SEBI also warned about counterparty and operational risks, and noted that securities-market investor-protection mechanisms do not automatically apply.
In plain terms: digital gold is a contract with a company, not a regulated security. Read the comparison below before you decide.
The risks worth knowing
- Price risk. Gold prices rise and fall. You can get back less than you put in.
- Spread. The buy rate is higher than the sell rate. A purchase sold immediately would come back at a small loss.
- Counterparty risk. Your holding depends on the provider and its custodian meeting their obligations.
- Charges and taxes. GST applies on purchase, and making, packaging and delivery charges apply to physical redemption. All of them are shown before you confirm.
Who it suits
Digital gold suits someone who wants to build a gold habit in small amounts and may eventually want the metal in hand. If your goal is a regulated market-linked instrument, look at Gold ETFs or Electronic Gold Receipts through a SEBI-registered intermediary instead.
Gold prices can rise or fall. Historical performance is not a guarantee of future returns. All applicable charges and taxes are disclosed before every transaction.
Digital gold is not these things
SEBI's November 2025 caution asks for this distinction to be clear. Here it is, side by side.
| Digital gold This product | Gold ETF | Electronic Gold Receipt (EGR) | Commodity derivative | |
|---|---|---|---|---|
| What you hold | Gold bought in your name, held with the provider's custodian | Units of a mutual fund scheme backed by gold | A depository receipt representing vaulted gold | A contract on the future price of gold |
| Regulated by SEBI | No | Yes | Yes | Yes |
| Where it trades | With the platform, at the platform's buy and sell rates | Stock exchange, through a broker | Stock exchange, through a broker | Commodity exchange, through a broker |
| Demat account needed | No | Yes | Yes | Yes |
| Minimum amount | From ₹10 | One unit, typically a few hundred rupees | Typically one gram | Lot sizes, usually large |
| Physical delivery | Yes, as coins once you have enough | Usually not | Yes, from the vault | Rarely, contract dependent |
| Investor protection mechanisms of the securities market | Do not automatically apply | Apply | Apply | Apply |
| Main risks | Price risk, spread, counterparty and operational risk | Price risk, tracking error | Price risk, liquidity | Price risk, leverage, margin calls |
This comparison is provided to help you understand the product category. It is general information, not investment advice. If you want a SEBI-regulated instrument, speak to a SEBI-registered intermediary.
Still want to save in gold?
Start small, keep it steady, and sell or redeem whenever you are ready.