WHAT?

Digital gold (also known as e-gold or online gold) is a way to buy, sell, and store physical gold electronically through online platforms — without needing to hold the gold yourself. Here’s how it works and what it means:
 

How It Works?
You buy gold online for as little as ₹10 or ₹100 via apps or platforms (like Paytm, PhonePe, Google Pay, Tanishq, SafeGold, Augmont, etc.).
The platform buys and stores equivalent physical gold in secure vaults (usually insured and audited).
You receive digital proof of ownership — the amount of gold (in grams) you own. You can later Sell the gold at live market prices, or
Convert it into physical gold (coins, bars, jewellery).
 

Is It Regulated?
Currently, digital gold is not regulated by SEBI, RBI, or any other government authority. Companies offering it are private players, so investor protection is weaker compared to mutual funds or bank gold bonds. That’s why SEBI recently warned investors about risks in buying digital gold through unregulated platforms.
 

Advantages

1. Buy or sell easily, even for small amounts.
2. No need to store or secure physical gold.
3. Transparent live market pricing.
4. Easy liquidity — sell anytime online.

Risks

1. No regulatory oversight — platform risk.
2. You depend on the private company’s integrity and vault security.
3. Possible hidden charges on buy/sell or storage.
4. Limited legal protection if disputes arise.

Alternative Options

1. Sovereign Gold Bonds (SGBs) – issued by RBI, pay interest, government-backed.
2. Gold ETFs – traded on stock exchanges, regulated by SEBI. What is a Gold ETF? Read here
3. Physical gold – tangible, but has storage and purity risks.