New Delhi, October 21, 2026 — The global digital gold market could grow from an estimated $45 billion–$55 billion today to $160 billion–$170 billion by 2031, provided the industry can address concerns over investor trust, accessibility, pricing and product utility, according to a joint report by the World Gold Council (WGC) and Boston Consulting Group (BCG).
The report, Digital Gold: Unlocking a $700-Billion Opportunity, also identifies up to $700 billion in potential latent demand. That figure is not a forecast of near-term sales or the market’s expected size by a particular year. Instead, it represents demand that could potentially emerge if major barriers to adoption were removed. The report’s base-case projection puts the digital gold market at $160 billion–$170 billion by 2031, implying annual growth of around 27%.
India is already an important market for the sector. More than 120 million customers in the country have engaged in digital gold transactions, according to the WGC. The report suggests that offering digital gold through familiar channels, including banking apps, payment platforms and super-apps, can significantly improve adoption.
But the opportunity comes with an important caveat: easier access alone will not be enough. Consumers also need confidence that their gold holdings are properly backed, that they can redeem them under clearly defined terms and that the costs and risks are transparent.
Digital Gold Market: What the Report Says
- Current global market: Approximately $45 billion–$55 billion.
- 2031 base-case projection: $160 billion–$170 billion.
- Potential latent demand: Up to $700 billion if adoption barriers are removed.
- Indian participation: More than 120 million customers have engaged in digital gold transactions.
- Potential new demand: Around 65% of latent demand could come from people who do not currently own gold.
These are estimates and modelled scenarios, not guaranteed outcomes. The actual market size will depend on consumer adoption, regulation, product design and wider economic conditions.
Why Digital Gold Is Attracting Investors
Digital gold gives people a way to buy gold in small amounts through online platforms, without having to purchase and store a coin or bar themselves. Depending on the product, the gold may be held in a vault by a provider, or ownership may be represented through a token backed by gold.
The format can appeal to first-time buyers and younger investors who want to start with relatively small sums. It can also make gold purchases more convenient by integrating them into apps people already use for payments and other financial transactions.
The WGC report draws on a survey of more than 12,000 retail investors across 12 markets, interviews with industry experts and market modelling. It found that nearly nine in 10 respondents would consider digital gold under the right conditions. Interest, however, does not automatically translate into purchases.
The report estimates that roughly 65% of latent demand could come from people who do not currently own gold. This suggests that digital gold may attract new participants to the gold market rather than simply shift existing investors away from jewellery, coins, bars or gold-backed exchange-traded funds (ETFs).
Four Challenges the Industry Must Address
1. Trust, security and proof of gold backing
Trust is one of the biggest obstacles to wider adoption. Buyers need to know who holds the gold, whether holdings are independently verified, what happens if a provider fails and how they can redeem their investment.
Clear information about custody arrangements, audits, fees, ownership rights and redemption procedures can help reduce uncertainty. Consistent standards and effective consumer safeguards would also make it easier for investors to compare products.
Without these protections, the convenience of buying gold online may not be enough to persuade cautious consumers to commit their money.
2. Better access through familiar platforms
The report finds that markets where digital gold is available through mainstream channels such as banking apps, payment platforms and super-apps can record penetration rates up to seven times higher than markets without similar distribution.
India illustrates the importance of this approach. Digital gold has reached more than 120 million customers through online channels, according to the WGC. Integrating the product into familiar platforms can make it easier for consumers to discover and purchase gold.
However, wider distribution must be accompanied by clear disclosures. Consumers should understand what they are buying and who is responsible for holding the underlying gold.
3. Transparent and competitive pricing
Digital gold may involve buying and selling spreads, platform fees, storage charges, taxes and other costs, depending on the provider and transaction. These can affect the amount an investor receives when selling or redeeming a holding.
The industry must make the full cost of ownership easier to understand and compare with alternatives, including physical gold and gold ETFs. Digital access does not automatically make a product cheaper: the underlying gold still needs to be sourced, stored and managed.
Competitive pricing will be particularly important for people making small, frequent purchases, for whom transaction costs can have a meaningful effect.
4. More useful products and clearer redemption options
Digital gold could become more attractive if it offers practical uses beyond buying and selling. The WGC report identifies potential opportunities involving lending, use as collateral and payments, although these features are not available on every product and may involve additional risks.
Physical redemption is another key consideration. Buyers should know whether they can convert their holdings into physical gold, what minimum quantities apply, how delivery works and what fees may be charged.
For the market to expand sustainably, product innovation must be matched by understandable terms and reliable operational arrangements.
India’s Regulatory Challenge: A Crucial Warning for Investors
India’s growth in digital gold has also brought the question of investor protection into sharper focus.
In a public caution issued on November 8, 2025, the Securities and Exchange Board of India (SEBI) said that digital gold and e-gold products offered by online platforms are different from SEBI-regulated gold products. Such digital gold products are not notified as securities or regulated as commodity derivatives, and they operate outside SEBI’s regulatory framework.
SEBI warned that investors could face counterparty and operational risks and would not have access to the investor-protection mechanisms available under its securities-market framework for those products.
This distinction matters. Digital gold sold through an app should not automatically be treated as equivalent to a gold ETF or an exchange-traded electronic gold receipt. Investors should check the legal structure of the product, the identity of the provider, the gold custody arrangements, the redemption terms and the applicable safeguards before committing money.
For the industry, clearer standards and stronger consumer confidence could be important to converting growing interest into sustained demand.
What the Gold Trade Expects
Manish Verma, owner of Shri Shyam Sunny Jeweller, said he agreed with the report’s broad assessment and believed the market could develop along the projected lines in the coming years.
That view reflects the potential appeal of a format that makes gold accessible through digital channels. The pace of growth, however, will depend on how effectively providers address questions of trust, pricing, regulation and the ability to redeem holdings.
What Happens Next?
The next phase of digital gold’s growth will depend on whether the industry can turn consumer interest into lasting confidence. More transparent products, familiar distribution channels, competitive costs and clear redemption arrangements could help broaden adoption.
The WGC’s base case projects a market worth $160 billion–$170 billion by 2031, while the $700 billion figure represents a much broader estimate of latent demand. The two numbers describe different scenarios and should not be confused.
The bottom line: Digital gold could open the gold market to millions of new investors, particularly in countries such as India where app-based transactions are widely used. But sustainable growth will require more than convenience. Clear safeguards, transparent pricing, dependable gold backing and straightforward redemption will be central to the industry’s ability to earn investors’ trust.
