Why Digital Gold is Becoming India’s Smartest Savings Habit

Gold has traditionally been purchased as jewellery, coins and bars. Today, Digital Gold offers another way to buy and hold gold through an online platform.

Digital Gold can make gold purchases more convenient, especially for people who want to start with smaller amounts. However, like any financial product, it is important to understand how it works, along with its benefits and risks, before making a purchase.

What Is Digital Gold?

Digital Gold allows you to purchase gold online, with your gold holdings recorded digitally in your account.

Depending on the product structure, the corresponding physical gold is stored through vaulting arrangements managed by the provider or its partners.

Sanduk currently facilitates Digital Gold services in association with SafeGold, with customer gold stored through the applicable bullion and vaulting arrangements.

The value of Digital Gold is linked to the market price of gold, which means the value of your holdings can increase or decrease as gold prices change.

Benefits of Digital Gold

1. Start With Smaller Amounts

One of the main advantages of Digital Gold is that it can make gold purchases more accessible.

Instead of waiting until you have enough money to purchase a larger quantity of physical gold, you can start with smaller amounts based on the platform's minimum purchase requirement.

This can make regular gold saving easier to manage.

2. Convenient Online Buying

Digital Gold can be purchased online without visiting a jewellery store or dealer.

You can also view your gold balance and transaction details through the platform, making it easier to keep track of your purchases.

3. No Home Storage

Physical gold needs to be stored securely, whether it is jewellery, coins or bars.

With Digital Gold, the underlying physical gold is stored through the applicable vaulting arrangements, so you do not need to keep it at home.

4. Regular Gold Savings

Digital Gold can also be used as part of a regular saving routine.

Sanduk offers daily, weekly and monthly saving options, along with Gold SIP and goal-based saving features, subject to applicable terms.

These options can help users save towards goals such as weddings, education, vehicles or homes.

Risks of Digital Gold

The convenience of Digital Gold does not mean that it is risk-free.

1. Gold Price Risk

Gold prices can rise and fall based on market conditions.

Sanduk's current terms state that gold prices are market-linked and volatile, and that no return or performance is guaranteed.

This means the value of your Digital Gold holdings can change over time.

2. Platform and Counterparty Risk

Digital Gold involves more than the movement of gold prices.

Depending on the product, the process may involve a digital platform, bullion provider, vaulting partner and other service providers.

Before purchasing, it is important to understand who provides the underlying gold, how it is stored and what happens if there is a disruption in any part of the service.

3. Regulatory Considerations

Anyone researching Digital Gold investment in India should also understand its regulatory structure.

In November 2025, SEBI cautioned the public that certain Digital Gold and E-Gold products offered by online platforms are different from SEBI-regulated gold products such as Gold ETFs and Electronic Gold Receipts.

SEBI stated that such Digital Gold products operate outside its regulatory framework and may involve counterparty and operational risks.

This does not mean that every Digital Gold product has the same structure or terms. Users should understand the specific product they are purchasing and the protections that apply to it.

4. Buying and Selling Prices

The price at which you buy Digital Gold may differ from the price at which you sell it.

Taxes and other applicable charges can also affect the overall cost.

Before making a purchase, check the current buying price, selling price, taxes and applicable charges.

Digital Gold vs Traditional Gold Investment

Digital Gold is different from regulated gold-market products such as Gold ETFs and Electronic Gold Receipts.

SEBI distinguishes Digital Gold products from these regulated gold products, which means they can have different regulatory structures, costs, risks and investor protections.

Therefore, it is important to understand the specific product rather than assuming that all gold investments work in the same way.

What Should You Check Before Buying Digital Gold?

Before starting with Digital Gold, take some time to understand the product.

Provider

Check who provides and fulfils the underlying gold.

Storage

Understand where the physical gold is stored and how the vaulting arrangement works.

Ownership

Read the terms to understand when and how ownership of the gold is established.

Pricing

Check the buying price, selling price, taxes and applicable charges.

Redemption

Understand whether you can sell your gold for cash or request physical delivery, and check the conditions that apply.

Risks

Understand the market, operational and counterparty risks before making a purchase.

Sanduk's current terms provide information about its partnership structure, storage arrangements, selling process, physical redemption and applicable limits.

Digital Gold Investment With Sanduk

Sanduk is designed to make Digital Gold saving simple and goal-oriented.

Users can purchase Digital Gold and choose from available daily, weekly or monthly saving options.

Sanduk also provides features such as Gold SIP, goal-based Sanduks and options for selling gold for cash or requesting physical redemption, where available and subject to applicable terms.

The aim is to make regular gold saving easier while allowing users to track their gold holdings digitally.