Page 32 - Bullion World Volume 5 Issue 08 August 2025

P. 32

Gold in India

Mr N Srinivasa Moorthy, Editor, Bullion World

Several factors fuel this trend:
The digital gold sector has recently • Ultra-low minimum investment: Platforms let users
accelerated, especially among millennials start with as little as ₹1–₹10, democratizing gold
and Gen Z-65% of users fall in this ownership
demographic, reflecting a generational • Purity assurance: Most are backed by LBMA
certified 24K gold vaults (99.9–99.99%), reassuring
shift toward digital-first investing. investors
• No storage hassles: Digital vaults eliminate locker
fees; gold is fully insured
What is Digital Gold • Live pricing & liquidity: Real time rates enable
instant buy/sell anytime, improving convenience
Digital gold is an online investment option that allows • Festival gift ability & delivery: Some platforms allow
individuals to buy, sell, and hold gold electronically, gifting gold or converting digital units into coins or
without owning or storing physical gold themselves. jewellery

Key points about digital gold: In 2024, gold investments in India were over
• Fractional Ownership: You can invest in very US $18 billion, with ~10% being digital, signalling a
small amounts, making it accessible for anyone— major shift . Experts predict digital gold adoption will
even for as little as 1 rupee double in 3 years
• Security: The gold you own digitally is backed by
physical gold stored securely by trusted suppliers Key Players: Who is leading?
• Liquidity & Convenience: You can buy or sell
your digital gold instantly through various apps MMTC PAMP
(e.g., Paytm, Google Pay, PhonePe) or have it • Credentials: A joint venture between government-
converted into physical coins or bars as needed. owned MMTC and PAMP (Switzerland). The only
• Transparency: Platforms offer real-time updates LBMA-accredited refinery in India
on gold prices, ensuring transparent pricing based
on the current market value • USP:
• No Storage Hassles: You don’t need to worry { 99.99% purity with transparency and security.
about the physical security, purity, or insurance of { Options: redeem digital gold for bars/coins, gift
the gold, as these are handled by the provider to others, sell anytime
• Transferability: Some platforms also allow gifting { Free storage for up to five years
or transferring digital gold to others
SafeGold

Growth of Digital Gold Participants • Credentials: SafeGold is backed by Digital Gold
Assuming 2022 as the baseline year—when the digital India Private Ltd, with minority investment by the
gold investor base in India was approximately 30–40 World Gold Council
million—there has been a remarkable and steady • USP:
increase in participation. Since 2022, the number of { 24K 995+ purity in LBMA "good delivery" bars
digital gold investors has surged by an impressive { Strong brand trust via Tanishq (Tata), offering
300%, reaching around 120 million investors today. physical redemption at 350+ stores
{ Secure, regulated by DGIPL compliance

32
32

27 28 29 30 31 32 33 34 35 36 37