Digital gold sales have more than tripled in the first half of 2026, reaching ₹17,631 crore despite a 25% drop in gold prices. Driven by UPI payments, the trend shows strong retail adoption, outpacing the entire 2025 sales volume. However, investors should note the product's unregulated nature compared to SEBI-regulated gold ETFs.
Digital gold has seen a rapid rise in popularity among Indian savers, with sales reaching ₹17,631 crore in the first six months of 2026. This figure, reported through data associated with the National Payments Corporation of India (NPCI), marks a significant jump compared to previous periods and has already surpassed the ₹14,549 crore total recorded for the full year 2025.
UPI Payments Drive Retail Participation
The growth is primarily fueled by the ease of transactions through UPI, which accounted for over 90 percent of these purchases. With an average transaction value of around ₹110, digital gold is attracting many first-time savers who may not have a demat account. Fintech platforms like PhonePe, Paytm, and Amazon Pay, along with retailers like Tanishq, have made it possible to start gold investments with as little as ₹1. This accessibility is a key differentiator from traditional investment avenues.
Shift in Investment Preferences
While digital gold is gaining traction, Gold Exchange Traded Funds (ETFs) have seen a different trend. After reaching a monthly high of ₹24,000 crore in January, ETF sales slowed to a cumulative ₹13,000 crore over the following five months. Unlike digital gold, Gold ETFs are regulated by the Securities and Exchange Board of India (SEBI) and trade like stocks on an exchange. The divergence in growth suggests that many retail investors currently prefer the simplicity of payment apps over the process of opening and managing a demat account.
Regulatory Landscape and Industry Response
Investors should be aware of the differences in oversight. In October 2025, SEBI raised concerns regarding the largely unregulated nature of digital gold products. While the market experienced a short-term dip following this caution, sales have since recovered. To address concerns about transparency and safety, major market participants have formed the Digital Precious Metals Assurance Council of India (DPMACI). This self-regulatory body aims to set operational standards and build consumer trust in the sector.
Understanding Costs and Risks
Before investing, users should consider the cost structure of digital gold. When purchasing through platforms that tokenize gold value, investors face expenses including Goods and Services Tax (GST), storage charges, and various platform fees. These costs can impact the overall returns compared to physical gold or regulated ETFs. As the market matures, the primary monitorable for investors will be how the DPMACI standards influence transparency and whether future government policies further define the regulatory status of these digital assets.