Digital Gold Sales Hit Record ₹4,000 Crore In January As Volatility Drives Safe-Haven Demand

Digital gold purchases through UPI rose to ₹3,926 crore in January, spanning 219 million transactions. This marks the highest monthly level recorded so far, according to data from the National Payments Corporation of India. UPI accounted for over 90% of all digital gold purchases during the month.

Sales Trend Over The Past Year

Digital gold sales have climbed steadily over the past year. Monthly purchases through UPI rose from about ₹762 crore in January 2025 to ₹2,290 crore by October 2025. Volumes fell sharply in November after the Securities and Exchange Board of India (SEBI) cautioned investors that digital gold remains unregulated. Sales dropped to around ₹1,200 crore following the advisory.

Demand revived in December as market volatility intensified, with transactions rising to ₹2,100 crore across 180 million purchases. The momentum accelerated further in January, pushing digital gold sales to a new peak.

How Digital Gold Works

Investors can buy gold in small denominations, starting from as low as ₹1, and typically up to ₹2 lakh per day depending on platform limits.

Most platforms sell digital gold backed by physical gold held with vaulting partners such as MMTC-PAMP or SafeGold. Users can sell their holdings at prevailing prices. Purchases typically involve additional costs including GST, storage charges, and platform fees. Fintech platforms such as Paytm, PhonePe, Jar, Amazon Pay, Google Pay, and Tanishq have played a central role in expanding access to digital gold.

Regulatory Status

Digital gold is not regulated by SEBI. The regulator has raised concerns that if platforms discontinue operations, customers may face challenges in redeeming or withdrawing their holdings. SEBI issued an advisory in November 2025, cautioning investors about the risks associated with unregulated digital gold products.

Digital Gold Versus Gold ETFs

Gold Exchange Traded Funds offer a regulated alternative to digital gold. These products are overseen by SEBI and usually carry lower ongoing charges. However, gold ETFs require a demat account, which many first-time or small investors find less convenient than app-based digital gold purchases. Digital gold offers fractional ownership, instant liquidity, and does not require a demat account. These features continue to attract retail participation despite regulatory uncertainty.