Digital Gold or e-Gold
The latest news on digital gold or e-gold revolves around a strong caution from the Securities and Exchange Board of India (SEBI). As of November 2025, SEBI has issued warnings to the public that digital gold or e-gold products offered by various online platforms are not regulated under SEBI's purview.
About Digital Gold
Digital gold and e-gold are often used interchangeably to refer to the electronic purchase and ownership of physical gold, typically stored in insured vaults by a third-party provider. This form of investment allows individuals to buy, sell, and accumulate gold online in small, fractional amounts without the need for physical storage.
Key characteristics of digital/e-gold
- Convenience: Transactions can be done online through fintech apps and other platforms, offering 24/7 accessibility.
- Fractional ownership: You can invest in very small amounts, sometimes as low as ₹1, making it accessible to more investors.
- Physical backing: Each digital unit is backed by an equivalent amount of physical gold, typically 24K 99.9% pure, and stored in secure vaults by the service provider.
- Liquidity: Digital gold can be easily bought and sold at live market prices.
- Physical redemption: Investors can often redeem their digital holdings for physical gold coins or bars.
Risks and regulatory status
- Regulatory concerns: Regulatory bodies like SEBI have clarified that digital gold/e-gold falls outside their purview, meaning investors do not have the protection mechanisms available for regulated securities.
- Counterparty risk: Since the physical gold is held by the third-party provider, investors face the risk that the provider may not be credible or reliable.
- Lack of regulation: The unregulated nature of digital gold means there is no guaranteed legal recourse in case of a provider's default or operational failure.
Distinctions between regulated and unregulated products
It is important to differentiate between unregulated digital gold/e-gold offered by online platforms and regulated gold products:
| Feature |
Unregulated Digital Gold/E-Gold |
Regulated Products (ETFs, EGRs) |
| Regulation |
Not regulated by financial bodies like SEBI. |
Regulated by the securities market regulator. |
| Investor Protection |
Investor protection mechanisms are unavailable. |
Protection mechanisms are in place. |
| Account |
No demat account required. |
Requires a demat account for trading. |
| Risk |
Involves counterparty and operational risk. |
Generally considered safer due to regulatory oversight. |
Digital gold is gaining popularity due to ease of use and affordability, but investors should be cautious about the platform's regulation and storage security.
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