In the age of instant investments and UPI transfers, even something as ancient as gold has gone digital. Digital gold lets you buy and own gold online without ever touching a gram of it. When you invest, the platform stores an equivalent quantity of 24-karat, 99.9% pure gold in insured vaults, managed by trusted custodians.

You can invest with as little as ₹1, track your holdings in real time, sell instantly, or even request physical delivery — no bank locker, no paperwork. It’s gold ownership made effortless for the smartphone generation.

Digital Gold Products: What’s Available

India’s digital gold market is currently dominated by three private players — Augmont Gold, MMTC-PAMP, and SafeGold. These providers partner with fintech apps and jewellers like PhonePe, Paytm, Tanishq, Google Pay, and HDFC Securities to offer investors seamless access.

You buy gold at live market prices; they store it safely on your behalf. But it’s crucial to remember that these are private arrangements, not SEBI-regulated products. So while it’s convenient, you’re trusting the platform’s custody and operations.

The Allure: Why Everyone’s Suddenly Talking About Gold

Gold has always been part of Indian culture, but what’s happening now is different. There’s a digital frenzy.

Across investment groups, WhatsApp chats, and dashboards, gold and silver are trending — sometimes more than mutual funds or equities.

Even Edelweiss Mutual Fund CEO Radhika Gupta has noticed the pattern.

Her sharpest critique was reserved for what she called the obsession with one-year returns, a trend she believes is driven by WhatsApp groups, performance dashboards, and media headlines. ‘Nobody is talking about equity or debt anymore,’ Gupta said. ‘Everyone is chasing one thing — gold and silver.’

Gupta highlighted how investor sentiment can shift dramatically with short-term performance.

Three years ago, we introduced a 50-50 Gold and Silver fund. Honestly, it was a silly product,” she admitted. “Returns looked so bad, my team didn’t even want to include them in the presentation.

The fund, launched quietly on her birthday in 2022, initially drew just ₹12 crore. Today, it receives ₹25 crore daily.

We didn’t market it. You’re not asking for it. Your bias is,” she quipped. “Why? Because it delivered 67.5 percent in the past year.

Then came her punchline — a caution investors would do well to remember:

It is not offering 67 percent. It has offered that return. There is a difference.

That difference, as Gupta underlined, separates rational investing from chasing momentum — something digital gold buyers must understand before getting carried away by glittering numbers.

Digital Gold SIPs — A Modern Saving Habit

One reason digital gold has gained popularity is the Digital Gold SIP (Systematic Investment Plan) model. Just like mutual fund SIPs, investors can set up automatic weekly or monthly purchases of gold through apps or platforms.

If you invest ₹1,000 per month, the app buys gold at that day’s rate — slowly building your holdings over time. This approach helps small investors save systematically without worrying about timing the market.

For many, it’s a practical way to accumulate gold for weddings, children’s education, or future security. However, unlike mutual funds, gold doesn’t generate interest or dividends — your returns depend purely on price appreciation.

Digital Gold vs Gold ETFs — Which Is Better?

A key question investors face is whether to go for digital gold or Gold ETFs. Both are linked to gold prices, but they differ significantly in regulation, structure, and taxation.

If your goal is ease and flexibility, digital gold wins. If you prefer safety, transparency, and regulation, Gold ETFs or Sovereign Gold Bonds (SGBs) are better long-term options. [Read - Risk Of Investing In Digital Gold]

SEBI’s Stand — An Important Warning

In 2023, the Securities and Exchange Board of India (SEBI) issued a clear advisory:

Digital gold is not a SEBI-regulated financial product.

That means SEBI doesn’t supervise or protect investors in case of disputes, fraud, or defaults. In fact, SEBI barred registered brokers and advisers from selling or promoting digital gold.

So, while digital gold feels modern and effortless, investors should remember — there’s no regulatory safety net. Always verify that the platform you’re using is partnered with a recognized provider like MMTC-PAMP, SafeGold, or Augmont.

Beyond Gold — Gupta’s Push Toward Fixed Income SIPs

Interestingly, Radhika Gupta says she is now focusing on something most investors are ignoring — fixed income SIPs.

I have received 15 emails in the last four days asking me to launch Platinum and Copper SIPs,” she said. “But three years ago, no one cared about these metals. Back then, silver was considered industrial waste. Gold barely had any takers.

Her comment captures the essence of investor psychology — we chase what’s performing today, not what’s fundamentally valuable tomorrow.

In that sense, digital gold is less about technology and more about human behaviour — the tendency to follow the shine wherever it moves.

The Rational Investor’s Lens

Before you jump into digital gold because it’s trending, ask yourself:

• Are you buying gold for diversification or for short-term profits?
• Do you know who is storing your gold and where?
• Would you still buy it if prices dropped 10% next month?

Gold — digital or physical — plays a role in balancing your portfolio, but experts recommend limiting exposure to around 10–15% of total assets. Anything beyond that could tilt your portfolio toward risk rather than safety. [Read - ]

Final Takeaway

Digital gold has opened doors for millions of small investors. It democratizes access to a traditionally elite asset — that’s its greatest strength.

But as Radhika Gupta’s remarks remind us, investing isn’t about chasing last year’s winner. It’s about discipline, diversification, and perspective.

So yes, digital gold can be part of your investment story — just make sure the story doesn’t become a headline-driven obsession.

Remember, Gold may glitter, but it’s wisdom that shines longer.