Digital gold · explainer

What is digital gold, really?

6 min read · updated Sep 2026

Digital gold lets you buy 24-karat gold in tiny amounts — from a single rupee — through apps like Paytm, PhonePe and Google Pay, all powered by a handful of vault operators. You own real metal; you just never hold it.

What you actually own

01

Pick a platform — Open Paytm, PhonePe or SafeGold — the gold is the same; the provider and spread differ.

02

Buy by amount or weight — Enter ₹100 or 0.1 g. The live price plus 3% GST is locked for a few minutes.

03

It's vaulted in your name — The provider stores insured 24K gold against your holding — no locker, no making charge.

04

Sell or take delivery — Sell back anytime at the live rate, or convert to coins with a small making charge.

Charges to expect

The number on screen isn't the whole cost. A buy/sell spread, 3% GST and eventual storage fees all apply.

CostTypical
GST on purchase3%
Buy/sell spread2–6%
Storage after 5 yrs0.1–0.5%/yr
Coin making charge₹100+ per unit

When it makes sense

Digital gold suits small, regular saving and gifting — festival buying, a wedding fund, a first step into gold. For larger, longer holdings, Sovereign Gold Bonds or a gold ETF usually cost less.

Key facts

Purity24K · 999.9
Minimum buy₹1
GST3%
StorageInsured vault

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FAQ

Common questions

Is digital gold safe?

The metal is insured and audited, but the platforms aren't regulated by SEBI or RBI as such. Stick to well-known providers and check who the vault operator is.

Is there a limit on how much I can buy?

Most apps cap unverified purchases at ₹2 lakh; full KYC raises it. There's usually no lower limit beyond ₹1.

How is it taxed when I sell?

Gains are taxed as capital gains based on your holding period, similar to physical gold. GST is only charged on the buy.

Prefer the price, not the metal?

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