Digital Gold

Digital gold is a financial product that allows investors to purchase, hold, and sell gold in electronic form — with each unit backed by an equivalent quantity of physical 24-carat, 99.9% pure gold stored in insured, audited vaults by the issuing company. Unlike Gold ETFs (which require a Demat account and trade on stock exchanges), digital gold can be purchased in any rupee amount (even as little as ₹1) through mobile apps, payment wallets, and online platforms — making it the most accessible form of gold investment for first-time investors and those without Demat accounts. In India, digital gold is offered by three providers: MMTC-PAMP India, SafeGold, and Augmont — available through platforms including Paytm, PhonePe, Google Pay, and several broker apps including Ventura. Investors can accumulate digital gold through one-time or recurring purchases, and can either redeem for cash at the prevailing gold price or take physical delivery of gold coins or bars above specified minimum quantities. Digital gold is not regulated by SEBI, RBI, or IRDAI — it is a product offered by private companies under commercial contracts, making it less regulated than Gold ETFs or Sovereign Gold Bonds (SGBs). Investors should understand that digital gold does not offer the Section 80C tax benefits of SGBs, and capital gains are taxed as applicable to physical gold — at applicable slab rates for short-term and 20% with indexation for long-term gains.