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Digital gold option is visible on UPI apps like PhonePe, Paytm and Google Pay where gold can be purchased for just Rs 10 or 20. Currently, more than 8 crore people in India have invested in digital gold and this market is growing at the rate of 30 to 35 percent every year. It is estimated that this market will reach Rs 9,841 crore by the financial year 2026-27.

When you buy digital gold worth Rs 10 on PhonePe or Paytm, that number of grams of gold is purchased in your name as per the gold price of that day. This gold is physically kept in secure vaults of companies like MMTC-Pamp, SafeGold or Augmont. Meaning your gold is real, just not in your pocket, but in a secure vault.

Digital gold is not completely unsafe but it is also not considered as regulated as FD or mutual funds. In November 2025, SEBI itself said that digital gold is outside their supervision and it is not a regulated financial product, although it is not illegal either. The gold kept in the vault is third-party audited and insured and your ownership is clearly reflected in your account.

start with small amount

The biggest advantage is that you can start even with Rs 10. To buy physical gold, at least 1 gram is required, which at today’s price is more than Rs 7,000. There is no such minimum limit in digital gold. For example, after investing Rs 100 and deducting GST of Rs 3, you will get approximately 0.0066 grams of gold from Rs 97. If you invest Rs 1,000, about 0.066 grams of gold will be deposited in your account and if you invest Rs 10,000, about 0.66 grams of gold will be credited to your account.

When you buy gold jewelery from the shop, you have to pay making charges separately which can range from 8 to 25 percent. In digital gold, only the price of gold has to be paid, there is no making charge. Apart from this, the price of digital gold is linked to the real-time market price, as the price of gold increases, the value of your gold also increases. Unlike FD, money does not remain stuck, you can sell it whenever you want. If you keep buying a little bit every month, then gradually a good amount of gold gets accumulated like SIP.

According to SafeGold, they currently have more than 5.5 crore customers and the company made a revenue of Rs 6,500 crore in the last financial year. Their partners include big companies like PhonePe, Axis Bank, Amazon and Tanishq.

How much do you get while selling?

When you buy, you buy at the buying price but when you sell, you get the selling price which is slightly lower. For example, if you had purchased digital gold worth Rs 1,000 3 months ago. At that time the price of gold was Rs 12,000 per gram. After deducting 3 percent GST i.e. Rs 30, you got 0.0808 grams of gold from the remaining Rs 970. Now today the price of gold has increased to Rs 14,669 per gram. The market value of your 0.0808 grams has now become Rs 1,185 but when you go to sell on the app, the platform gives 2.5 to 5 percent less than the market price, this is called spread. That means instead of Rs 1,185 you will get around Rs 1,125 to Rs 1,155.

advantage of long term storage

Those who hold for a long time get good benefits when the price of gold increases. In 2024, gold has given more than 21 percent returns, leaving behind every asset class and so far in 2025, it has gone up by 25 percent but those who sell in short term may see some loss in the beginning due to GST and spreads. Digital gold is most useful for those who want to invest in gold in small amounts and think of holding it for a long time.