How to Buy Digital Gold Online in India: A Comprehensive Guide

How to Buy Digital Gold Online in India: A Comprehensive Guide 2025

Investing in gold has been a long-standing tradition in India, but the way we do it has changed. Digital gold offers a modern, secure, and highly convenient way to own gold without the hassles of physical storage. If you’re new to the world of gold investment or looking for a smarter way to manage your portfolio, this guide is for you.

This post will walk you through everything you need to know about Buy Digital Gold Online—from choosing the right platform to understanding the tax implications and comparing it with other gold investment options.

1. What Exactly is Digital Gold?

At its core, digital gold is a method of buying and selling physical 24-karat (99.9% pure) gold electronically. When you purchase digital gold, an equivalent amount of physical gold is bought and stored in a highly secure, insured vault by a trusted custodian on your behalf. You receive a digital receipt of your purchase, and the gold you own is reflected in your online account.

Why is it gaining popularity? It democratizes gold investment by allowing you to buy tiny, fractional amounts with a low entry barrier, sometimes starting from as little as ₹1.

2. The Benefits of Investing in Digital Gold

Digital gold is a game-changer for several reasons:

• Affordability: You don’t need a large sum of money. Unlike buying a physical gold coin or bar, you can purchase gold in fractional quantities, making it accessible to everyone.
• Convenience: The entire process—from buying to selling—is done online through your smartphone or computer. You can invest 24/7, from anywhere, without visiting a jeweler.
• Guaranteed Purity and Security: The gold you buy is certified 24K and stored in a secure, third-party audited vault. This eliminates all concerns about purity, theft, or storage costs.
• High Liquidity: You can sell your digital gold holdings at the live market price and receive the money directly in your bank account, often instantly.
• No Making Charges: Unlike physical jewelry, you don’t have to pay for making charges, which can be a significant cost. You only pay for the gold itself.

3. A Step-by-Step Guide to Buy Digital Gold Online

The process is surprisingly simple. Here’s a clear breakdown:

Step 1: Choose a Reputable Platform

This is the most critical step. Since digital gold operates outside the direct regulatory purview of SEBI, it is vital to choose a platform backed by a reliable partner. The main providers of digital gold are MMTC-PAMP and SafeGold.

Here are some popular platforms and apps where you can buy digital gold:

• Dedicated Platforms: Direct apps from providers like MMTC-PAMP and SafeGold are often preferred for their transparency and direct dealings.
• Fintech Apps: Popular apps like Paytm, Google Pay, PhonePe, and Amazon Pay have integrated digital gold services, offering a seamless user experience.

Step 2: Account Creation and Verification

After selecting a platform, you will need to:

1. Download the app or visit the website.
2. Register with your basic details (name, mobile number, etc.).
3. Complete a quick KYC (Know Your Customer) process, which may involve providing a PAN card or Aadhaar details, depending on the transaction value.

Step 3: Make Your First Purchase

1. Navigate to the “Digital Gold” or “Investments” section of the app.
2. You’ll be able to choose how you want to buy: either by amount (in ₹) or by weight (in grams).
3. The platform will display the live market price of 24K gold. Enter your desired amount or weight.
4. Proceed to the payment page. You can pay using UPI, a debit card, net banking, or the app’s wallet balance. Your gold will be credited to your account instantly.

4. Risks & Tax Implications You Must Know

While convenient, digital gold has specific risks and tax rules that every investor should be aware of.

Regulation and Security

• Lack of SEBI Regulation: Digital gold is not regulated by SEBI, which means it does not have the same investor protection as Gold ETFs or Sovereign Gold Bonds. This makes it crucial to invest only through reputable platforms with secure vaulting partners.
• Cybersecurity Risk: As a digital asset, it is vulnerable to cyberattacks and data breaches. Always use platforms with strong security measures, and ensure your account is protected with a secure password and two-factor authentication.

Tax on Digital Gold

The tax treatment of digital gold is a major factor to consider.

• GST: A 3% Goods and Services Tax (GST) is levied on all digital gold purchases. This is similar to the tax on physical gold.
• Capital Gains Tax:
  • Short-Term Capital Gains (STCG): If you sell your digital gold within 3 years of purchase, the profit (gains) will be added to your total income and taxed according to your individual income tax slab.
  • Long-Term Capital Gains (LTCG): If you hold the gold for more than 3 years, the gains will be taxed at a flat rate of 12.5%. Following the latest budget updates, the benefit of indexation is no longer available for this asset class.

5. Digital Gold vs. Other Gold Investment Options

How does digital gold stack up against the alternatives?

Feature	Digital Gold	Physical Gold (Coins/Jewelry)	Gold ETFs	Sovereign Gold Bonds (SGBs)
Entry Barrier	Very low (from ₹1)	High (requires buying in larger quantities)	Requires a Demat account and brokerage	High (₹5,000 to ₹10,000 per unit)
Purity	Guaranteed 24K (99.9%)	Varies; requires certification	99.5% to 99.9% pure	Backed by RBI; no purity concerns
Storage & Security	Stored in insured, secure vaults	High risk of theft; requires a locker	Electronic form; held in Demat account	Electronic form; no physical gold
Liquidity	High; can be sold instantly	Low; requires a physical jeweler	High; traded on stock exchanges	Low; 5-year lock-in period
Regulation	Not directly SEBI-regulated	Minimal regulation on pricing/purity	Regulated by SEBI	Regulated by RBI
Taxation	3% GST on purchase; STCG/LTCG tax on sale	3% GST + 5% on making charges	No GST; LTCG tax on sale	Tax-free on maturity after 8 years
Additional Benefits	Option for physical delivery	Sentimental value; can be worn	Professional management; lower expense ratio	2.5% annual interest

If you’re comfortable with trading platforms and want lower expense ratios, Gold ETFs are a smart option.

Zerodha is one of the most trusted platforms in India to buy and sell Gold ETFs. To buy, you need:

• A Demat account (Zerodha makes this easy)
• Some basic understanding of stock market trading
• To invest during market hours

How to Open a Zerodha Account to Buy Gold ETFs

Zerodha is India’s largest and most trusted discount broker, ideal for buying Gold ETFs like SBI Gold ETF, Nippon Gold ETF, and more.

Step-by-Step Guide:

1. Visit: https://www.smartsourav.com/go/kite
2. Enter your mobile number and OTP
3. Fill your PAN, Aadhaar, and bank details
4. Upload documents (PAN, Aadhaar, Signature, Bank proof)
5. eSign via Aadhaar OTP
6. The account is usually approved in 24–48 hours

Once your account is live, just search for GOLD ETFs and start investing like you buy stocks.

Popular Gold ETFs in India:

• Nippon India Gold ETF
• SBI Gold ETF
• HDFC Gold ETF
• ICICI Prudential Gold ETF

Final Verdict: Is Digital Gold Right for You?

Digital gold is an excellent starting point for new investors and a great tool for making small, regular gold investments. Its key strengths are its low investment barrier, convenience, and high liquidity.

However, for larger, long-term investments, you should carefully consider the regulatory aspects and tax implications compared to Sovereign Gold Bonds (SGBs) and Gold ETFs, which are government-backed and regulated by SEBI/RBI.

Common FAQs on How to Buy Digital Gold Online in India