Search Suggestions
- Gold Loan
- Money Transfer
- Mutual Funds

What Is Digital Gold and How Does It Work?
Indians are some of the biggest consumers of physical gold. For ages, the amount of gold one possessed was viewed as being directly proportional to one’s prosperity. Gold, as an investment, has always been viewed as future security. However, holding on to physical gold articles came with its own set of challenges. One had to be careful about securely storing the gold as well as authenticating the purity of the purchased gold. That’s the reason we pay extra for renting out safety deposit lockers. And in the event of a financial crisis, selling off gold to generate funds is also a daunting task. You have to find a genuine buyer, negotiate for rates and physically hand over the gold. Not anymore. The world is changing and technology has made our lives digitalized. Now, you can buy 24k or 99.5k gold online through digital companies without having to physically hold the gold. And, the minimum buy or sell value is just one rupee.
What is Digital Gold?
Digital gold is a virtual way of buying and investing in 24k or 99.5 percent purity gold without having to physically hold the gold. New-age fintech companies are using technology to provide their customers with a delightful experience. Investors looking to invest in physical gold can now do so conveniently online. The company providing this service acts as the intermediary that buys the physical gold on your behalf and stores it in insured and secured vaults.
Suggested Read: Digital Gold vs Physical Gold: Which is the Better Investment?
Digital Gold is an advancement on the traditional way of buying gold. The entire process, from application to allocation, is completed conveniently and discreetly from the comfort of your home. And the most attractive feature is that you can buy gold for as low as Re 1 which isn’t possible in the traditional way of purchasing gold.
Comparison between Traditional Way of Gold Purchase and Digital Gold
Traditional Gold Purchase Method | Digital Gold | |
---|---|---|
Investment | Requires a large sum of money for making jewellery, coin, bar or bullion purchases. | Investment Requires a large sum of money for making jewellery, coin, bar or bullion purchases The minimum investment starts from as low as Re 1. |
Gold Price | The price per gram of gold could vary with different jewellers. | There's no ambiguity in gold prices. |
Authenticity | Quality and purity of gold could vary for different jewelers. | Quality and purity is guaranteed. Digital gold is always 24k or 99.5% pure gold. |
Storage | Gold items have to be stored either at home or in a bank locker. | The digital gold company stores the gold in highly-secured vaults. |
Security | Threat of theft, robbery or damage. | The stored gold is 100% secured. |
Charges | Buying gold articles incur making charges while on selling the gold, making charges etc are deducted from the final price. Additionally, there could be locker rent charges. | In some cases, there could be making or storage charges levied. |
Liquidity | Selling of gold articles could be cumbersome and time-consuming. | Digital gold can be sold at real-time market prices whenever desired. |
Convenience | May require physical visits to a jewellery store and then transporting it back home. | This gold investment is 100% online. |
How can you buy Digital Gold?
At present, you can buy digital gold from several mobile e-wallets such as Paytm, Google Pay, and PhonePe. Brokers such as HDFC Securities and Motilal Oswal also have an option for digital gold investing. The actual gold that is purchased on behalf of the investor is provided by:
- Augmont Gold Ltd.
- MMTC-PAMP India Pvt. Ltd. (A joint venture between state-run MMTC Ltd. and Swiss firm MKS PAMP).
- Digital Gold India Pvt/ Ltd with its SafeGold brand.
Disadvantages of a Digital Gold Investment
Buying digital gold is a fairly new concept in India. Despite the many obvious benefits, there are certain disadvantages too.
- The gold investment doesn’t generate any interest.
- On most platforms, the amount of digital gold investment has been capped at Rs 2,00,000.
- Lack of regulatory bodies and guidelines.
- Some platforms offer only a limited storage period.
- During the delivery of digital gold, holding companies charge a small management fee for holding the gold for you.
Conclusion
Digital Gold is a smart gold investment that does away with many issues associated with physical gold purchases. Furthermore, it is an excellent gifting option too!
- Avail gold loan
- Calculate Gold Loan
- Check Gold rate today
- Gold Loan Eligibility
- Interest Rate
- Gold Loan Scheme
- Custom Offers
CATEGORIES
OUR SERVICES
-
Credit Score
-
Gold Loan
-
Personal Loan
-
Cibil Score
-
Vehicle Loan
-
Small Business Loan
-
Money Transfer
-
Insurance
-
Mutual Funds
-
SME Loan
-
Corporate Loan
-
NCD
-
PAN Card
-
NPS
-
Custom Offers
-
Digital & Cashless
-
Milligram Rewards
-
Bank Mapping
-
Housing Finance
-
#Big Business Loan
-
#Gold Loan Mela
-
#Kholiye Khushiyon Ki Tijori
-
#Gold Loan At Home
-
#Sunherisoch
RECENT POSTS

Term Loan Explained: Types, Features, Pros & Cons
Know More
Understanding Financial Security: Meaning, Importance & Benefits
Know More
Flat vs Reducing Interest Rate: Which One Should You Choose?
Know More
What are Sectoral Mutual Funds? When to Invest in Them
Know More
10 Smart Strategies to Repay Your Home Loan Faster
Know More
Paper Gold Vs Physical Gold: Key Differences Explained
Know More
Investing vs Saving: Key Differences You Must Understand
Know More
Understanding How Mutual Funds Work: A Complete Guide
Know More
Top 5 Different types of Short Term Loans in India
Know More
What Is a Digital Gold Loan and How Is It Different from Traditional Gold Loans?
Know MoreFIN SHORTS

Why Digital Gold Loans Are Gaining Traction in 2025
Know More
Gold Price Forecast for the Next 6 Months
Know More
Why Travel Is Now the Top Reason for Indians to Take Personal Loans
Know More
Repo Rate Cuts, Inflation, and Your EMI: Navigating Personal Loans in 2025
Know More
A ₹10,000 SIP Could Turn into Crores?
Know More
NPS Repairs: 6 Big Reforms Everyone Should Know
Know More
4 Reasons Gold Loans Are Popular in South India
Know More
Top 5 Mutual Funds Giving Highest Returns in July 2025
Know More
How to Read Muthoot Finance Share Price Trends Daily?
Know More
Share Price Today: Key Factors Influencing Stock Market Movement
Know More
Top Performing Mutual Fund Categories in 2025
Know More
Why Gold Loans Doubled in 2025: Insights
Know More- South +91 99469 01212
- North 1800 313 1212