Digital gold exploded from a few million users to 50+ million by 2025 — but the rapid growth came with zero regulatory oversight.
What Makes Digital Gold Risky
Digital gold isn’t regulated by SEBI, RBI, or MCX.
If your platform shuts down or mismanages vault gold — you have no protection.
The Hidden Cost Trap
Buying digital gold includes 3% GST, high spreads (4–5%), and platform fees.
Your ₹10,000 investment instantly turns into ₹9,400–₹9,500 before gold prices even move.
Digital Gold vs Gold ETF: Clear Winner
Digital gold has high spreads & no regulation.
Gold ETFs offer low costs, SEBI protection, no GST, and full transparency.
What Should Investors Do Now?
Small holdings (₹5–10k): hold but stop adding.
Large holdings (₹50k–1L+): shift gradually to ETFs or Gold Mutual Funds to reduce losses.
SEBI’s Recommended Alternatives
Gold ETFs, Gold Mutual Funds, and EGRs offer regulated, transparent, and safer exposure to gold — without digital gold’s hidden risks.