Digital Gold gains popularity, but is it truly safe to invest? Know here

Digital gold investments are rapidly gaining popularity in India, with sales rising 69% in 2025 despite safety concerns raised by SEBI. While investors are drawn by convenience and low entry costs, the lack of regulatory oversight raises questions about security and physical gold backing.

Post Published By: Sona Saini

Updated : 21 March 2026, 9:58 AM IST

Digital Gold Boom in India Raises Safety Concerns Amid SEBI Warning

New Delhi: Digital gold investment is rapidly gaining traction in India, but concerns about the risks associated with it are also growing. Despite warnings from the Securities and Exchange Board of India (SEBI), people are buying digital gold in large numbers. Digital gold sales grew by 69% in 2025, reflecting its growing popularity.

Easy investment is driving growing demand

The biggest advantage of digital gold is its convenience. Investors can start buying it with just ₹10. There are no storage or making charges. The convenience of buying and selling at any time through mobile apps and online platforms is making it popular, especially among young people.

SEBI's warning and security concerns

SEBI has clarified that digital gold is not under its regulatory purview. This means there is no government oversight or security for such investments. In such a situation, if a company commits fraud or closes down, investors may suffer losses and have limited legal protection.

Do companies hold physical gold?

The biggest concern is whether companies selling digital gold actually hold the same amount of physical gold as investors have purchased. There is a lack of transparency regarding this matter, raising doubts among investors.

Alternative and Safe Investment Options

Experts believe that investors should consider safer options. Investments like Gold ETFs (Exchange Traded Funds) are regulated by SEBI and carry relatively low risk. They trade on stock exchanges and are backed by physical gold.

Lack of Regulations and Future Expectations

Currently, there are no clear government regulations for the digital gold sector. However, the India Bullion and Jewelers Association (IBJA) has developed a self-regulatory framework, which is scheduled to come into effect on April 1. The World Gold Council believes that if the government establishes clear regulations, investment in this sector could grow even faster.

Caution is essential before investing

Investors must understand all the risks before investing in digital gold. Despite the convenience and easy access, it is wise to exercise caution in this unregulated investment.