Myths Around Digital Gold

Myths Around Digital Gold

Digital Gold has quickly become one of the most convenient ways for Indians to buy, sell, and accumulate gold. With the rise of investment apps and digital platforms, millions of investors have embraced them as an alternative to physical gold. But with popularity comes misinformation. A lot of myths, doubts, and misconceptions still prevent new investors from exploring Digital Gold confidently. In this blog, we decode the most common myths around Digital Gold and reveal the truth behind each one — so you can make informed decisions.

Myth 1: “Digital Gold Is Not Real Gold”

Fact: Digital Gold is 100% real, 24K pure gold (99.9%) stored securely in insured vaults. When you buy Digital Gold, you own actual physical gold — just in digital form. You can also:
✔ convert it to physical gold,
✔ sell it instantly, or
✔ keep it stored safely without handling it yourself.

Myth 2: “Digital Gold Isn’t Safe”

Fact: Digital Gold is stored in SEBI-regulated vaults, monitored by trustees, and insured against theft and damage. In many ways, it’s safer than keeping gold at home. Your holdings are:
✔ Fully allocated
✔ Backed by physical gold
✔ Audited regularly
✔ Protected with multi-layer security
Apps like AssetPlus, ZFunds, and other platforms only facilitate the transaction — the gold itself is held by trusted providers like MMTC-PAMP, Augmont, etc.

Myth 3: “Digital Gold Is More Expensive Than Physical Gold”

Fact: Digital Gold sometimes appears slightly costlier because it includes:
✔ Premium for 24K purity
✔ Vault storage
✔ Insurance charges
But when you calculate:
✔ Making charges on jewellery
✔ GST on physical gold
✔ Storage costs
✔ Risk of theft
Digital Gold often becomes the more cost-effective choice.

Myth 4: “You Need a Lot of Money to Start Buying Digital Gold”

Fact: You can start investing in Digital Gold with as little as ₹10 or ₹100 depending on the platform. It supports:
✔ Micro-investing
✔ SIP-style gold accumulation
✔ Easy goal-based planning (wedding, wealth building, gifting)
This flexibility makes Digital Gold ideal for small investors.

Myth 5: “Digital Gold Cannot Be Exchanged for Physical Gold”

Fact: Most providers allow seamless conversion from Digital Gold to:
✔ Gold coins
✔ Gold bars
✔ Jewellery (depending on partner stores)
Your digital balance can be delivered to your doorstep or collected from authorised outlets.

Myth 6: “Returns From Digital Gold Are Uncertain”

Fact: Digital Gold mirrors the real-time price of physical gold in the Indian market. There is no difference in the return pattern — your gains or losses move exactly like gold’s market value. Since gold historically acts as a hedge against inflation and volatility, Digital Gold provides a stable long-term return profile.

Myth 7: “Digital Gold Is Not Regulated”

Fact: While Digital Gold itself is not regulated by SEBI or RBI yet, its ecosystem is governed by:
✔ BIS standards for purity
✔ Third-party trustees
✔ Regulated vault operators
✔ Strong compliance guidelines
✔ Full audit trails
Additionally, platforms selling Digital Gold follow strict governance and KYC norms.

Myth 8: “You Should Only Buy Physical Gold”

Fact: Physical gold is useful for jewellery and gifting, but it comes with:
✔ Making charges
✔ Risk of theft
✔ Storage hassles
✔ Lack of liquidity
Digital Gold removes all these problems and still allows physical conversion anytime. For investment purposes, Digital Gold is simpler, safer, and more liquid.

Why Digital Gold Is Gaining Popularity

✔ Easy buying & selling
✔ No storage worries
✔ Backed by real 24K gold
✔ Available in small amounts
✔ Can be redeemed anytime
✔ Perfect for long-term wealth building