Indians bought Rs 2,590 crore of digital gold in September, 83% more than a year earlier, according to the World Gold Council. Buying in the first nine months of 2026 rose 76% to 16.3 tonnes, as small, app-based purchases drew new investors despite high prices.
At a glance
- September volumes reached 1.7 tonnes, 18% above the long-term monthly average.
- 52% of digital gold holders had never owned gold before, WGC data show.
- Digital gold is not regulated by the Securities and Exchange Board of India (SEBI), which has warned investors.
Background
Digital gold lets people buy small amounts of gold through apps and online platforms, with the gold recorded against their account. Depending on the provider, it is backed by physical gold in vaults and can be sold online or exchanged for coins and bars. It is popular for small purchases paid through UPI, India's instant mobile payment system.
What happened
Purchases of digital gold in India rose 83% from a year earlier to Rs 2,590 crore in September, the Economic Times reported, citing World Gold Council (WGC) data. That was 4% more than in August, and volumes reached 1.7 tonnes, 18% above the long-term monthly average.
From January to September, digital gold purchases rose 76% to 16.3 tonnes, up from 9.2 tonnes in the same period last year.
Who is buying
Most buyers make small, UPI-led purchases, and a growing share are young, first-time buyers, said Samit Guha, managing director of gold refiner MMTC-PAMP, which sells digital gold. He said the company's volumes rose 70% from the July-September quarter of last year.
MMTC-PAMP expects its digital gold volumes during the Dhanteras-Diwali season to grow by more than 50% from last year. WGC data show that 52% of digital gold holders had never owned gold before.
The regulatory gap
SEBI warned investors in November last year that digital gold sold on online platforms falls outside its rules for securities and commodity derivatives. That means buyers do not get the protections of regulated products. The industry is working on a self-regulatory framework covering custody, disclosure and consumer protection.
Our read
Outlook: neutral. Digital gold buying is growing fast but is still small compared with India's overall gold demand.
What to watch
- Digital gold sales during Dhanteras and Diwali.
- Progress on the industry's self-regulatory framework.
- Any move by Indian regulators to bring digital gold under formal rules.
For information only, not investment advice.
Gold price in India
metalscost.com India reference price as of 2026-11-02.
Detailed analysis
Timeline
- 2026-10-27: WGC data show Indian digital gold purchases rose 83% to Rs 2,590 crore in September.
What could lift prices
- Digital gold is bringing new, younger buyers into the gold market.
- Sellers expect festive-season digital gold volumes to rise more than 50%.
What could weigh on prices
- At 1.7 tonnes a month, digital gold remains a small part of India's gold demand.
- Lack of regulation could hold back growth if trust is shaken.
Country impact
| Country | Impact | Reason |
|---|---|---|
| India | Medium | Digital gold is becoming an entry point into gold for first-time buyers. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Investment and Wealth Management | Positive | App-based gold products are drawing new investors. |
Who gains, who loses
- Digital gold platforms: Purchases rose 83% by value in September from a year earlier.
- Unprotected investors: Digital gold buyers do not get the protections of SEBI-regulated products.
Other ways this could play out
- If a self-regulatory framework builds trust, digital gold could keep growing quickly.
- If a platform failure hits buyers, regulators may step in and growth could slow.
Price risks
- Gold prices near $4,000 an ounce could cool small-ticket buying.
- Regulatory action could change how platforms sell digital gold.
Technical view
Price is trading below both its 20-period and 50-period moving averages, a bearish alignment.
Computed from metalscost.com's own stored price history.
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