Digital gold purchases jump 83%: Is convenience changing how Indians buy gold?

Digital gold purchases in India continued to rise in September, highlighting growing consumer interest in buying the precious metal through digital platforms. The trend comes as gold prices remain elevated, with investors and consumers increasingly looking for convenient ways to accumulate gold in smaller amounts.

According to the World Gold Council’s (WGC) October 2026 India Gold Market Update, digital gold purchases reached ₹2,590 crore in September, up 83% year-on-year and 4% from August. Purchases totalled an estimated 1.7 tonnes, 18% above the long-term monthly average since January 2025.

On a year-to-date basis, digital gold purchases stood at 16.3 tonnes, compared with 9.2 tonnes during the corresponding period last year, marking a 76% increase.

The WGC attributed the sustained demand to the accessibility and convenience of digital gold, which allows consumers to make purchases with relatively small amounts of money.

Why digital gold is gaining traction

Digital platforms have made it easier for consumers to accumulate gold without buying jewellery, coins or bars in one transaction. The ability to invest small sums and purchase gold online can appeal to younger buyers and those who want to build their holdings gradually.

The September data suggest that demand has remained resilient despite elevated gold prices. However, the WGC report does not provide a demographic breakdown, so the extent to which younger investors are driving this growth remains unclear.

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The trend also comes ahead of the festive and wedding season, traditionally an important period for gold demand in India. While digital gold offers a convenient investment route, physical jewellery continues to serve consumption, gifting and cultural purposes.

Digital gold vs gold ETFs vs physical gold

Although all three provide exposure to gold, they differ in ownership, costs and risks.

Digital gold allows users to buy gold online, often in small denominations. The platform typically arranges for the gold to be held by a service provider or custodian. Investors should check storage arrangements, redemption terms, applicable charges and the platform’s credibility before investing.

Gold exchange-traded funds (ETFs), meanwhile, are market-linked investment products that track domestic gold prices. Investors buy and sell ETF units through a stock exchange using a demat and trading account. ETFs are regulated securities, with expenses and market-related risks that investors should assess before investing.

Physical gold, including jewellery, coins and bars, provides direct possession of the metal. However, buyers may face making charges on jewellery, storage concerns and a difference between purchase and resale prices.

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What should investors keep in mind?

Digital gold’s convenience does not automatically make it the best option for every buyer. Unlike gold ETFs, digital gold products do not fall under the same established securities-market regulatory framework. Investors should therefore carefully examine the provider, custody arrangements, buy-sell spreads and redemption conditions.

Those seeking gold as part of a financial portfolio may compare ETFs with other regulated investment options, while buyers purchasing jewellery for personal use may prefer physical gold.

The sharp increase in digital gold purchases signals growing interest in convenient, small-ticket gold buying. Whether this translates into a lasting shift in Indian gold-buying habits will depend on consumer trust, costs, regulation and how prices evolve.

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