Digital gold purchases experienced a remarkable surge of 83% year-on-year to ₹2,590 crore in September, as reported by The Economic Times. According to the World Gold Council (WGC), September purchases rose 4% from August while volumes touched 1.7 tonnes, 18% above the long-term monthly average. This growth reflects investors' continued appetite for small-ticket gold investments despite elevated prices in the physical market.
The sustained momentum is evident in the cumulative performance, with digital gold purchases climbing 76% to 16.3 tonnes in the January-September period compared to 9.2 tonnes in the corresponding period last year, as reported by The Economic Times. This significant increase demonstrates the growing appetite for accessible gold investments among Indian consumers seeking alternative investment options.
Digital gold allows consumers to purchase the metal online in small amounts through apps and digital platforms, with purchased quantities recorded against their accounts, according to The Economic Times. Depending on the provider, the gold is backed by physical metal held in secure vaults and can be sold online or redeemed as coins and bars. The low entry barrier and convenience of app-based purchases have made it an increasingly popular alternative to buying physical jewellery or coins, particularly appealing to younger, first-time buyers seeking exposure to gold investments.
Despite the growth, regulatory concerns persist as the Securities and Exchange Board of India cautioned investors in November that digital gold products offered by online platforms do not fall under its regulatory framework for securities and commodity derivatives and therefore do not carry investor protections associated with regulated products, as reported by The Economic Times. The industry is working towards a self-regulatory framework to establish standards for custody, transparency, disclosures and consumer protection. MMTC-PAMP expects digital gold volumes during the Dhanteras-Diwali season to grow by more than 50% from last year.
The World Gold Council projects the global digital gold market could reach $160-170 billion by 2031, with potential to reach $700 billion if barriers around trust, access, utility and pricing are addressed, according to The Economic Times. WGC data shows that 52% of digital gold holders had never owned gold before, highlighting the product's potential to widen participation in the gold market among Indian consumers. MMTC-PAMP reports that volumes have increased 70% from Q2 FY26 to Q2 FY27, with the company running festive campaigns featuring systematic investment plans starting at ₹10.
