The gold rush: Digital investment mode adds glitter to the boom in yellow metal
Gold is going through an unprecedented bull run over the past two years. Only this year, the price of this precious metal has surged as much as 47%. The point is digital investment has become a popular mode of investment in the yellow metal for the past year and a half.
Kolkata: Gold has been in demand from investors in a manner as has rarely been seen in the past few decades. While gold has seen increased demand from safe-haven seekers, the avenues of investing in gold has also multiplied such as SGBs (Sovereign Gold Bonds), Gold ETFs (exchange traded funds) and digital instruments. More and more investors are putting their money in gold through the digital route which is popularly referred to as digital gold.
Reports state that in the past 16 months, digital gold has recorded a surge of 3.77 times. The number of digital gold purchases made through UPI has gone up from 2.09 crore in April 2024 to nearly 9.98 crore in August 2025 with a rise in corresponding value from Rs 550 crore to Rs 1,184 crore. Incidentally, SGBs have been discontinued by the Centre due to the massive rise in prices causing strain on the finances at the time of redemption. Therefore, ETFs and digital gold are the two non-conventional ways of investing in gold now.
The participating entities
Taking advantage of the rise in investor preferences, MMTC PAMP, Augmont Goldtech, Tanishq and Senco Gold have started offering digital gold for their clients. The digital certificates that are issued to investors are stored in these vaults and they can redeem them whenever they want for metallic gold or cash. The advantages for the client are obvious. They need not undertake any storage hassle and can yet enjoy the gains in price.
The other advantage is that any amount can be invested in digital gold and one does not have to invest more than Rs 1.16 lakh to buy 10 gms of it as one has to do in coins or bars. The fractional investment is a key advantage as the price of the metal has soared. The other advantage is the even fractional amounts. It allows budgets to be flexible. Also the act of transferring money becomes extremely convenient by using the UPI platforms which has significantly reduced the use of cash/cheque/online payments for a rising number of common citizens in the country.
Gold, silver prices
On Monday, September 22, the yellow metal price rose Rs 2,200 to record a new peak of Rs 1,16,200 per 10 grams in New Delhi. Analysts said strong global cues, especially cues from the US Fed, caused the surge. Silver prices also zoomed by as much as Rs 4,380 on Monday to hit a record Rs 1,36,380 per kilogram (inclusive of all taxes) on Monday. Silver stood at Rs 1,32,000 per kg on Friday. In 2025, silver prices have rocketed by Rs 46,680 per kilogram or 52.04%.
Disclaimer: This article is only meant to provide information. TV9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds, precious metals, commodity, REITs, INVITs, any form of alternative investment instruments and crypto assets.