Digital Gold at a glance
- What it is
- Digital gold lets you buy gold online in small amounts, with the seller holding the physical gold in a vault on your behalf. It is different from gold ETFs and gold mutual funds, which are SEBI-regulated.
- Who it is for
- Investors who want small-ticket gold exposure and understand the differences between gold investment products.
- How Early Grow helps
- We explain how digital gold, gold ETFs and gold mutual funds differ in regulation, cost, storage and taxation, so you can choose appropriately.
- Next step
- Book a free consultation or call +91 93541 57455.
Digi Gold Investment
Digital gold investment is a modern way to invest in gold without physically holding the metal. It allows investors to buy, sell, and store gold digitally.
Types of Digital Gold Investments:
- Gold Exchange-Traded Funds (ETFs)
- Gold Mutual Funds
- Digital Gold Platforms (e.g., Augmont, MMTC-PAMP)
- Mobile Wallets (e.g., Paytm Gold, Google Pay)
- Online Gold Trading Platforms
Benefits:
- Convenience: Buy/sell gold online 24/7
- No storage worries: Gold stored securely
- Flexibility: Invest in small quantities
- Transparency: Live gold prices
- Liquidity: Easy to sell
- No making charges
- Tax efficiency
How Digital Gold Investment Works:
- Create an account on a digital gold platform
- Fund your account
- Buy gold (in grams or ounces)
- Gold stored in secure vaults
- Sell gold online
- Withdraw funds or redeem physical gold
Key Features:
- Purity: 24K/995 gold
- Weight: Invest in fractions of grams
- Price: Linked to international gold prices
- Security: Insured and audited
- Redemption: Option to take physical delivery
Popular Digital Gold Platforms:
- Augmont Gold
- MMTC-PAMP
- Paytm Gold
- Google Pay Gold
- PhonePe Gold
- HDFC Gold Investment
Fees and Charges:
- Commission: 0.5%-2% on buying/selling
- Storage fees: 0.5%-1% per annum
- Redemption fees
- GST (3% on gold purchases)
Risks:
- Market volatility
- Security risks
- Liquidity risks
- Regulatory risks
Tax Implications:
- GST of 3% applies when you buy digital gold
- Gains are taxed as capital gains. Under the rules introduced in July 2024, gold held for more than 24 months is treated as long-term and taxed at 12.5% without indexation; shorter holdings are taxed at your slab rate. Tax rules change, so confirm the current position before you sell.
Is digital gold regulated?
Digital gold sold by apps and bullion companies is not regulated by SEBI or the RBI, and SEBI has barred stockbrokers from offering it. If you want regulated gold exposure, consider gold ETFs or gold mutual funds (regulated by SEBI) instead. Before buying digital gold, check who holds the physical gold, how it is insured and audited, and what charges apply when you sell or take delivery. See SEBI's investor education portal.
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Frequently asked questions
DigiGold Investment lets you buy digital gold, where your money is used to purchase pure 24K gold, stored safely in vaults. You get all the benefits of owning gold, but without the hassle of keeping it at home.
Your DigiGold is kept in safe and insured vaults managed by trusted companies. This way, you don’t have to worry about keeping it at home or in unsafe places.
There is no maximum limit to how much DigiGold you can buy, but there is a small minimum investment amount to get started. This makes it easy for anyone to begin investing.
Yes, there may be a small fee to cover the cost of storing and insuring your gold. We keep these fees low and transparent, so you’ll always know what you're paying for.
At the moment, we don’t offer physical delivery of your DigiGold. However, you can sell it at any time and withdraw your money through the platform.
Selling your DigiGold is simple. Just log in to your EarlyGrow account, sell your gold at the current market rate, and the money will be sent to your bank account.
Yes, your DigiGold is completely safe and insured. The gold backing your investment is stored in protected vaults, so it’s well taken care of.
Tax rules depend on where you live and your personal situation. We recommend speaking to a tax advisor to understand how your DigiGold investment might be taxed.
Talk to an Early Grow adviser
Tell us what you need and we will explain your options, the documents required and the next steps. The first consultation is free.