Digital Gold Buying Surges 50% Despite SEBI’s Regulatory Risk Flags

Indian retail investors, especially millennials and Gen Z, have sharply increased purchases of digital gold in 2025, even as regulatory uncertainty emerged following a warning from the market regulator last month. 

Rising Digital Gold Demand 

According to the World Gold Council, Indian investors purchased an estimated 12 tonnes of digital gold during January–November this year.  

The estimate is based on transaction data published for the 1st time by the National Payments Corporation of India (NPCI), which tracks UPI-linked digital gold purchases.  

At prevailing Mumbai spot prices, this volume of 24-karat gold is valued at approximately ₹16,670 crore. As per news reports, digital gold demand stood at about 8 tonnes in 2024. 

Why Digital Gold Attracts Younger Investors 

Digital gold allows investors to buy, sell and hold gold online without taking physical delivery, with entry points as low as ₹1. The product has gained traction among 1st-time investors and app-based users seeking fractional ownership, transparent pricing and relief from storage and purity concerns.  

Millennials and Gen Z are estimated to account for nearly two-thirds of total digital gold buyers, reflecting a broader shift toward digital-first investment behaviour. 

“Gold continues to hold a deeply rooted place in Indian households as an important asset class and digital gold builds on this legacy by improving access through fractional ownership and transparent, market-linked pricing, while addressing concerns around storage and purity,” said Sachin Jain, WGC’s regional chief executive, India, as per news reports. 

Regulatory Warning Slows Momentum 

Demand moderated after the Securities and Exchange Board of India issued an advisory in November cautioning investors that digital gold is not regulated by SEBI nor covered under existing commodity market frameworks.  

The regulator noted that digital gold differs from regulated products such as gold exchange-traded funds and electronic gold receipts, urging investors to assess risks carefully before participating. 

Read More: Gold ETF Assets in India Surpass Milestone of ₹1 Lakh Crore in October 2025! 

Conclusion 

Despite regulatory caution, digital gold continues to gain traction among younger Indian investors seeking flexible and transparent exposure to gold. With self-regulatory measures now taking shape, industry participants believe clearer governance could help stabilise demand and support the long-term evolution of digital gold as a mainstream investment option. 

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