Digital gold offers convenience but lacks statutory protections, says analysis

Digital gold is gaining traction in India due to fractional access, 24×7 availability, and ability to convert into physical gold. But critics caution that it lacks statutory protections compared to physical bullion or government-backed schemes like Sovereign Gold Bonds. It still attracts GST and may not allow immediate physical delivery in some platforms. While digital gold appeals to tech-savvy investors, prudent buyers are advised to understand custody fees, conversion costs, and counterparty risk before allocating significant capital to digital versions.