Digital gold allows investors to purchase, sell, and accumulate gold in smaller denominations and in a dematerialised format through online platforms. It offers the flexibility of gold investment without the hassles of storing physical gold. Here’s a comprehensive guide on everything you need to know about investing in digital gold.

What is digital gold? 

Digital gold, also referred to as e-gold or electronic gold, is a mode of investing in gold in dematerialized or electronic format through online platforms offered by service providers. The digital gold provider buys physical gold equivalent to the investor’s purchase amount and stores it securely in insured vaults.

The minimum investment amount for digital gold starts from as low as Rs.1. The digital gold units reflect the real-time market value of gold, hence providing a similar upside in bullion value as physical gold. Investors can accumulate gold over time by making small investments.

Benefits of digital gold investment

Investing in digital gold has several advantages over physical gold:

  • Lower investment amount: Digital gold can be purchased for as low as Re.1 making gold investment affordable. This allows young individuals and students to also become gold investors.
  • Storage: Digital gold saves the headaches of storage locker costs and safety risks of keeping physical gold at home. The service provider stores the equivalent physical gold safely in secure and insured vaults.
  • Liquidity: Digital gold can be easily sold in minutes at the latest market rates to get funds in a bank account compared to selling physical gold which may take a few days. There is no lock-in period for holding digital gold.
  • Transparent pricing: The digital gold wallet reflects real prices based on live market rates, ensuring complete transparency in gold valuation and investment returns.
  • SIP Investments: Systematic Investment Plans allow periodic investments in digital gold from as low as Rs.500 per month. This makes gold investment a disciplined habit and averages out purchase prices.

How to buy digital gold?

  • Investors buy digital gold from online platforms of service providers like Digigold, SafeGold, MMTC-PAMP, Digital Gold, Augmont etc.
  • The digital gold provider purchases the equivalent physical gold of 24 karat purity from reputed refineries.
  • The gold is stored in secure and insured vaults on behalf of the investor.
  • The investor is allotted units of digital gold in the online wallet reflecting the real-time market value of equivalent physical gold.
  • Investors can sell all or part of the digital gold anytime at the latest prices and receive sale proceeds in their bank account within 2 days.

Is digital gold safe?

Leading digital gold providers like Digigold use bank-grade security systems and encryption protocols to protect investor information and transaction data.

The physical gold equivalent to the investor’s digital gold units is stored in high-security vaults insured by leading insurance providers. Gold purity certification and audits by third parties ensure gold integrity.

Taxation of digital gold

As per current tax laws, digital gold gets the same treatment as physical gold.

  • Short-term capital gains tax of 15% applies if digital gold is sold within 24 months.
  • Long-term capital gains tax of 10% (above Rs 1 lakh gains) applies if digital gold is sold after 24 months.
  • No Wealth tax or making charges apply for digital gold.

Differences between digital gold and physical gold

While digital gold provides exposure to gold price movements, some key aspects differentiate it from physical gold ownership.

  • Physical gold can be retrieved or delivered to the investor’s address (charges apply). Digital gold cannot be converted to physical form but can be easily liquidated.
  • Physical gold in the form of jewellery has making charges which add to the cost. Digital gold has no making charges.
  • Physical gold involves higher initial investment and transaction costs. Digital gold has low ticket size and transaction charges.

Why invest in digital gold?

Here are some top reasons to consider investing in digital gold.

Diversification: Investing a part of a portfolio in digital gold provides a tool for diversification and hedging against market risks in other asset classes like equity, real estate etc.

Inflation hedge: Historically gold has been an effective hedge against inflation, especially in times of geopolitical or economic uncertainties.

Liquidity: Digital gold can be easily sold at the latest prices to get instant liquidity compared to selling physical gold or jewellery. There is no lock-in period.

Transparent pricing: Digital gold providers ensure complete transparency in gold pricing linked to live market rates.

Ownership: The investor has ownership of the equivalent physical gold stored safely in insured vaults by the service provider.

Why Choose Digigold?

Digigold is your trusted partner when it comes to Digital Gold investments. With investments starting from as low as 1 ₹, Digigold offers a flexible and reliable approach to buying Gold.

Digigold also offers a no lock-in period SIP in Gold, starting just from ₹. 500 through periodic installments.

Digigold values Transparency a lot, and that’s why when buying with Digigold, you can rest assured about the purity and quality of Gold as we provide 24 Karat Pure Gold of 99.9% purity with certifications.

Digigold also offers the facility to buy physical gold, with direct delivery to your doorstep.

Secure Wallet

Gold purchased by the users is stored in government-trusted vaults of BRINKS.

40+ Years Of Legacy

DigiGold is a brand by Amrapali Gujarat that has 40+ years of legacy in Bulk Gold and Silver. They are amongst the top 5 Bullion Dealers in India.

Cyber Security

DigiGold application has been tested for all parameters of Cyber Security as per Government norms.

365 Days Support

We have a dedicated support team to help you in case you face any issues.

Accredited And Supported By

DigiGold is accredited by NABL and BIS. Supported by GGC and SEQUEL.


Digital gold opens up gold investment in smaller, affordable denominations thereby democratizing it as an asset class. It provides excellent hedging qualities to portfolios without physical possession hassles. Leading service providers like Digigold have ensured robust systems and processes to protect investors’ interest in digital gold. Digital gold is set to become an important investment avenue for retail investors in years to come.