Why wait for Dhanteras to buy gold? Expert explains SIP advantage amid digital gold's growing popularity
According to the World Gold Council's (WGC) Q3 2026 Gold Demand Trends report, gross digital gold purchases increased to 16.3 tonnes during January–September 2026, compared with 9.2 tonnes in the corresponding period last year. During the July–September quarter, purchases reached 4.9 tonnes, up 44% from 3.4 tonnes a year earlier.
- Nov 3, 2026,
- Updated Nov 3, 2026 1:30 PM IST
Digital gold is gaining popularity among Indian investors, with purchases surging 76% in the first nine months of 2026. While small-ticket investments and flexible redemption options are attracting buyers, questions remain over regulatory protection, transaction costs and whether digital gold is a better alternative to gold ETFs.
According to the World Gold Council's (WGC) Q3 2026 Gold Demand Trends report, gross digital gold purchases increased to 16.3 tonnes during January–September 2026, compared with 9.2 tonnes in the corresponding period last year.
During the July–September quarter, purchases reached 4.9 tonnes, up 44% from 3.4 tonnes a year earlier. The growth comes despite domestic gold prices averaging ₹1,48,891 per 10 grams during Q3, a 45% year-on-year increase.
The WGC attributed digital gold's growing appeal to accessibility, convenience and low minimum investment requirements.
Why are investors choosing digital gold?
Unlike traditional jewellery purchases, digital gold allows investors to accumulate small quantities without making a substantial upfront payment.
Rhea Chaterji, Co-Founder and COO of SafeGold, said planned systematic investment plans (SIPs) allow customers to spread purchases throughout the year instead of making large investments during festivals.
"SafeGold helps users set up planned SIPs through which customers can plan their gold buys more efficiently, and later convert it to a coin or redeem for jewellery at partners like Tanishq," she said.
Customers can also purchase during price corrections and reserve smaller symbolic purchases for auspicious occasions.
According to Chaterji, SafeGold customers can receive physical coins starting from 0.1 gram, making gold accessible to budget-conscious buyers.
She added that many customers prefer daily or monthly purchases, eventually converting accumulated holdings into physical gold.
Digital gold versus gold ETFs: What's the difference?
Digital gold typically involves purchasing fractional quantities of physical gold through online platforms. The provider arranges custody of the underlying metal, while investors hold a contractual claim under the platform's terms.
Gold ETFs, meanwhile, are regulated mutual fund products that track gold prices and trade on stock exchanges.
The distinction matters because digital gold products are not regulated by SEBI in the same manner as gold ETFs.
Investor protection therefore depends significantly on the provider's custody arrangements, independent audits, insurance coverage and redemption policies.
Investors should examine who legally owns the underlying gold, whether holdings are independently verified and what happens if the platform or service provider fails.
What are the hidden costs?
Digital gold purchases generally attract 3% GST. Investors may also incur a difference between buying and selling prices, commonly called the spread.
Physical redemption can involve minting, delivery and other charges, depending on the provider.
These costs can reduce effective returns, particularly when investors buy and sell frequently.
Gold ETFs have expense ratios and brokerage-related costs, but do not ordinarily attract GST on the investor's purchase of ETF units.
Tax treatment also differs, making post-tax returns an important consideration.
ALSO READ: Indians spend ₹2.42 lakh crore on gold despite 29% crash in demand: What's driving the paradox?
Can digital gold generate additional returns?
Chaterji said some SafeGold customers holding gold for extended periods participate in gold leasing arrangements, with the company citing an additional 4% return.
However, such returns should not be confused with guaranteed appreciation in gold prices. Leasing introduces additional contractual and counterparty risks that investors must assess.
For investors seeking convenient accumulation and eventual jewellery redemption, digital gold may offer flexibility.
Those primarily seeking investment exposure should compare it with regulated gold ETFs, factoring in costs, liquidity, taxation and investor safeguards before deciding.
DO READ: Diwali bling goes underground: Illegal gold imports surge 1,500% as higher taxes bite
Digital gold is gaining popularity among Indian investors, with purchases surging 76% in the first nine months of 2026. While small-ticket investments and flexible redemption options are attracting buyers, questions remain over regulatory protection, transaction costs and whether digital gold is a better alternative to gold ETFs.
According to the World Gold Council's (WGC) Q3 2026 Gold Demand Trends report, gross digital gold purchases increased to 16.3 tonnes during January–September 2026, compared with 9.2 tonnes in the corresponding period last year.
During the July–September quarter, purchases reached 4.9 tonnes, up 44% from 3.4 tonnes a year earlier. The growth comes despite domestic gold prices averaging ₹1,48,891 per 10 grams during Q3, a 45% year-on-year increase.
The WGC attributed digital gold's growing appeal to accessibility, convenience and low minimum investment requirements.
Why are investors choosing digital gold?
Unlike traditional jewellery purchases, digital gold allows investors to accumulate small quantities without making a substantial upfront payment.
Rhea Chaterji, Co-Founder and COO of SafeGold, said planned systematic investment plans (SIPs) allow customers to spread purchases throughout the year instead of making large investments during festivals.
"SafeGold helps users set up planned SIPs through which customers can plan their gold buys more efficiently, and later convert it to a coin or redeem for jewellery at partners like Tanishq," she said.
Customers can also purchase during price corrections and reserve smaller symbolic purchases for auspicious occasions.
According to Chaterji, SafeGold customers can receive physical coins starting from 0.1 gram, making gold accessible to budget-conscious buyers.
She added that many customers prefer daily or monthly purchases, eventually converting accumulated holdings into physical gold.
Digital gold versus gold ETFs: What's the difference?
Digital gold typically involves purchasing fractional quantities of physical gold through online platforms. The provider arranges custody of the underlying metal, while investors hold a contractual claim under the platform's terms.
Gold ETFs, meanwhile, are regulated mutual fund products that track gold prices and trade on stock exchanges.
The distinction matters because digital gold products are not regulated by SEBI in the same manner as gold ETFs.
Investor protection therefore depends significantly on the provider's custody arrangements, independent audits, insurance coverage and redemption policies.
Investors should examine who legally owns the underlying gold, whether holdings are independently verified and what happens if the platform or service provider fails.
What are the hidden costs?
Digital gold purchases generally attract 3% GST. Investors may also incur a difference between buying and selling prices, commonly called the spread.
Physical redemption can involve minting, delivery and other charges, depending on the provider.
These costs can reduce effective returns, particularly when investors buy and sell frequently.
Gold ETFs have expense ratios and brokerage-related costs, but do not ordinarily attract GST on the investor's purchase of ETF units.
Tax treatment also differs, making post-tax returns an important consideration.
ALSO READ: Indians spend ₹2.42 lakh crore on gold despite 29% crash in demand: What's driving the paradox?
Can digital gold generate additional returns?
Chaterji said some SafeGold customers holding gold for extended periods participate in gold leasing arrangements, with the company citing an additional 4% return.
However, such returns should not be confused with guaranteed appreciation in gold prices. Leasing introduces additional contractual and counterparty risks that investors must assess.
For investors seeking convenient accumulation and eventual jewellery redemption, digital gold may offer flexibility.
Those primarily seeking investment exposure should compare it with regulated gold ETFs, factoring in costs, liquidity, taxation and investor safeguards before deciding.
DO READ: Diwali bling goes underground: Illegal gold imports surge 1,500% as higher taxes bite