Prestigious Metals

Digital Gold on Apps: What to Know Before You Buy This Dhanteras

Digital gold is easy to buy on apps, but it sits outside SEBI's oversight. Here are the risks, the hidden costs and what to check before you buy.

Buying gold for Dhanteras no longer needs a trip to the jeweller. Many payment and shopping apps now let you buy digital gold in very small amounts with a single tap. It feels simple and safe. But digital gold is not overseen by the market regulator, and that changes how much protection you have if something goes wrong.

What Is Digital Gold?

Digital gold lets you buy gold online without holding it in your hand. The app shows a live price, you pay, and your account then shows how many grams you own. The company selling it says it keeps the same amount of real gold in a vault on your behalf.

Later, you can usually sell it back on the same app at that day’s price. Many platforms also let you ask for delivery as a coin or bar, for an extra charge.

What Has SEBI Said About Digital Gold?

In November 2025, SEBI, the stock market regulator, cautioned people about digital gold sold on online platforms. It said these products are not treated as shares or other securities, and are not regulated as commodity contracts either. In plain words, they sit completely outside SEBI’s watch.

SEBI said digital gold may carry significant risks. One is the risk that the company holding your gold fails to keep its promise. Another is the risk of problems in how the platform itself is run. Most importantly, the safety nets that protect buyers of regulated products do not cover these schemes.

A few weeks later, SEBI’s chairman said the regulator does not plan to oversee digital gold, because it falls outside its powers. So, for now, you should not expect regulator-backed protection when you buy it.

Why This Matters to You

With a regulated product, there are clear rules on how your money is kept and a regulator you can complain to. With digital gold, you are mostly relying on the company’s own promises: that the gold really exists, that it is stored safely, and that you can sell it or take delivery whenever you want.

If the seller or the app shuts down, is sold, or changes its terms, getting your money or your gold back could be slow and difficult. You would largely depend on the company’s terms and on a normal consumer complaint, not on a regulator stepping in for you.

None of this means every digital gold seller is unsafe. It means the checking is your job, not a regulator’s.

Costs That Are Easy to Miss

Buying a few hundred rupees of gold looks cheap and easy. The real cost shows up in the small print:

GST: 3% GST is added when you buy, just as it is on physical gold.
The buy–sell gap: the price you buy at is usually higher than the price you can sell at in the same moment. If you sell soon after buying, you may get back less than you paid.
Delivery charges: turning your grams into a coin or bar usually costs extra for making and delivery.
Storage terms: some platforms store your gold free only for a set period. Check what happens after that.

Add these up before you decide that digital gold is the cheaper way to buy.

What to Check Before You Tap “Buy”

Who actually sells and stores the gold

The app you use is often only the shop window. The gold is usually sold and stored by a partner company. Find out its name, where the vault is, and whether an independent trustee or auditor checks that the gold really matches what customers own.

How and when you can sell

Read how selling works, how long the money takes to reach your bank, and whether there are any limits or extra fees. Look at the buying and selling prices side by side on the same day, so you know the gap.

Delivery options and charges

If you want to hold the gold one day, check the smallest coin you can ask for, the making and delivery charges, and whether the coin carries a purity mark. When you buy physical gold anywhere, check the BIS hallmark and the six-digit HUID code.

Keep your records

Download the invoice for every purchase and keep screenshots of your balance. If a dispute ever comes up, these are your proof of what you bought and when.

The Regulated Options SEBI Pointed To

In the same caution, SEBI reminded people that there are gold products which do come under its rules. These are gold exchange traded funds (ETFs) offered by mutual funds, electronic gold receipts that trade on stock exchanges, and exchange-traded gold contracts. They are bought through registered brokers or mutual funds, usually with a demat account.

Each of these has its own costs, rules and risks, and gold prices can fall as well as rise whichever way you buy. The difference is that they come with a regulator, clear disclosure rules and a formal complaint route.

Frequently Asked Questions

Is digital gold regulated by SEBI?

No. SEBI has said digital gold sold on online platforms is neither a security nor a regulated commodity contract, so it sits outside its oversight. SEBI’s chairman has also said the regulator does not plan to oversee it.

Is digital gold safe to buy?

It depends largely on the company that sells and stores the gold. Because no market regulator watches over it, you rely on the company’s own promises and terms, so check who holds the gold, how it is audited and how you can sell or take delivery.

Do I pay GST on digital gold?

Yes. 3% GST is added when you buy digital gold, the same as on physical gold. There is also usually a gap between the buying and selling price, which adds to the cost if you sell soon after buying.

Can I convert digital gold into a gold coin?

Many platforms let you ask for delivery as a coin or bar once you hold enough grams. Making and delivery charges usually apply, so check them first, and look for the BIS hallmark and HUID code on the coin you receive.

What regulated gold options did SEBI mention?

SEBI pointed to gold ETFs offered by mutual funds, electronic gold receipts traded on stock exchanges, and exchange-traded gold contracts. These are bought through registered brokers or mutual funds and come under SEBI’s rules.