<\/span><\/h3>\n\n\n\nBoth have different risk profiles. Physical gold has zero counterparty risk, you own it\u00a0outright\u00a0and the only risks are theft or damage. Digital gold is stored in insured vaults,\u00a0eliminating\u00a0theft risk, but introduces platform and custodian risk. <\/p>\n\n\n\n
SEBI has cautioned (November 2025) that digital gold is unregulated, only invest through established platforms backed by credible custodians like MMTC-PAMP or\u00a0SafeGold.\u00a0<\/p>\n\n\n\n
<\/span>Is Digital Gold Regulated by SEBI or RBI?<\/strong> <\/span><\/h3>\n\n\n\nNo. As of now, digital gold is\u00a0not regulated by SEBI or RBI\u00a0in India. SEBI had previously restricted mutual funds from investing in digital gold, and in November 2025, SEBI reiterated cautions about the unregulated nature of digital gold products. <\/p>\n\n\n\n
This means investor protections are limited to the platform’s terms and the custodian’s legal agreement, not statutory regulation.\u00a0<\/p>\n\n\n\n
<\/span>Can I Convert My Digital Gold to Physical Gold?<\/strong> <\/span><\/h3>\n\n\n\nYes, on most platforms. Platforms backed by MMTC-PAMP or SafeGold allow you to request delivery of your digital gold holdings as physical gold coins or bars, subject to a minimum weight threshold (typically 0.5g or 1g) and applicable delivery\/minting charges. The gold is hallmarked and delivered to your registered address. <\/p>\n\n\n\n
<\/span>Which Has Better Returns? Digital Gold or Physical Gold<\/strong> <\/span><\/h3>\n\n\n\nBoth track the same underlying gold price, so long-term returns are\u00a0nearly identical. The difference is in costs: physical\u00a0gold’s\u00a0making charges (especially\u00a0jewellery) reduce effective returns significantly.\u00a0<\/p>\n\n\n\n
Digital gold’s lower cost structure means more of your money actually buys gold.\u00a0For pure investment returns, digital gold has the edge; Sovereign Gold Bonds (SGBs) offer an\u00a0additional\u00a02.5% annual interest, making them the most return-efficient gold instrument if held to maturity.\u00a0<\/p>\n\n\n\n
<\/span>What Is the Minimum Amount to Invest in Digital Gold?<\/strong> <\/span><\/h3>\n\n\n\nMost platforms allow you to buy digital gold starting from \u20b910. On FatakPay, you can start investing in digital gold from \u20b910 at live market rates with no minimum holding requirement. This makes it accessible to anyone, including first-time investors building a habit before committing larger amounts. <\/p>\n\n\n\n
<\/span>Is Digital Gold a Good Investment for the Long-Term?<\/strong> <\/span><\/h3>\n\n\n\nDigital gold is a reasonable long-term store of value, tracking real gold prices with guaranteed 24K purity and low entry costs. However, for long-term investment (5+ years), Sovereign Gold Bonds (SGBs) are generally superior, they offer the same price appreciation plus 2.5% annual interest and tax-free LTCG if held to maturity. Digital gold works best as a flexible, accessible entry point or a short-to-medium-term gold accumulation tool. <\/p>\n\n\n\n
<\/span>Do I Pay GST on Digital Gold Purchases?<\/strong> <\/span><\/h3>\n\n\n\nYes. A 3% GST applies on every digital gold purchase, just as it does on physical gold. This is a one-time charge at purchase, there is no GST when you sell. For jewellery, an additional 5% GST applies on making charges. When comparing total acquisition costs, digital gold (3% GST only) is considerably cheaper than gold jewellery (3% GST + 5% GST on making charges + the making charge itself). <\/p>\n\n\n\n
Want instant access to cash without selling your gold? FatakPay offers <\/strong>personal loans<\/strong><\/a> up to \u20b95 Lakh with no collateral; apply in minutes with a 650+ CIBIL score.<\/strong> <\/p>\n\n\n\n