Digital Gold in India: Is It a Smart Way to Invest in Gold Today?

In our previous post, we explored the various ways to invest in gold—from jewellery and coins to ETFs, sovereign gold bonds, and international options. As gold prices continue to surge and investor interest grows, digital gold has emerged as another popular option, especially among younger and first-time investors.

But is digital gold really worth considering? Let’s break it down.

What Is Digital Gold?

Digital gold allows you to buy pure 24K gold online, starting from as little as ₹10, through mobile apps and payment platforms.The gold you purchase is backed by physical gold stored securely in insured vaults by trusted custodians.

In India, digital gold is commonly offered through platforms like:

PhonePe
Google Pay
Paytm
Jar
Groww
Kuvera

Most platforms partner with providers such as MMTC-PAMP, SafeGold or Augmont, ensuring 99.9% purity.

How Digital Gold Works

You buy gold at the live market price
Gold is stored on your behalf in secure vaults
You can sell anytime, convert it into jewellery, or request physical delivery
Holdings are shown in grams, just like a digital wallet

This convenience has made digital gold extremely popular in India, including Kerala.

Advantages of Digital Gold

Low entry barrier You don’t need thousands of rupees to start—perfect for small, regular investments.
No storage or security worries Unlike physical gold, there’s no locker fee or theft risk.
High liquidity You can sell instantly during market hours, often within seconds.
Pure 24K gold Digital gold is typically purer than jewellery gold (22K).
Ideal for short to medium term goals Many investors use it for planned jewellery purchases or savings.

Risks & Limitations You Should Know

While digital gold is convenient, it’s not risk-free.

Not regulated by SEBI or RBI Unlike Sovereign Gold Bonds or ETFs, digital gold lacks formal regulation.
GST applies A 3% GST is charged on every purchase.
Price spread Buy and sell prices may differ slightly, impacting short-term returns.
Not ideal for long-term wealth creation For long horizons, SGBs often provide better returns due to interest and tax benefits.

Digital Gold vs Other Gold Investment Options

Option	Best For
Jewellery	Occasions & gifting
Gold Coins/Bars	Physical ownership
Digital Gold	Small, flexible investments
Gold ETFs	Market-linked investing
SGBs	Long-term, tax-efficient holding

As discussed in our earlier gold investment guide, no single option is perfect. The right choice depends on your goal.

Should Kerala Investors Consider Digital Gold?

Digital gold can be a good starting point if you:

Want to invest small amounts
Prefer mobile-first convenience
Plan to convert gold into jewellery later
Are saving for short-term goals

However, for long-term investors in Kerala, combining digital gold with Sovereign Gold Bonds or ETFs may offer a more balanced approach.

Final Thoughts

Digital gold has made gold investing simpler and more accessible than ever in India. While it shouldn’t replace traditional or regulated options entirely, it works well as a supplementary investment.

As always, keep an eye on daily Kerala gold rates, understand the charges involved, and choose the option that aligns with your financial goals.

Stay tuned to KeralaGoldRates for more updates, comparisons, and insights on gold investments 📈