By BrandsShouts Buying gold used to mean visiting a jewellery shop, worrying about purity, paying making charges, storing it safely, and then figuring out where to sell it later. All that changed. By 2026, digital gold has become one of the easiest and most flexible ways to buy gold in India.
This guide explains everything: what digital gold really is, how it works, how you buy it online, the costs, how you can sell it, tax rules, risks, and smart tips. No gaps. No shortcuts.
What is digital gold?
Digital gold is real gold stored in secure vaults, but you own it in digital form.
When you buy digital gold:
- You don’t get a physical coin or bar immediately.
- Instead, your digital account shows how much gold you own (in grams or fractions).
- The gold is kept in insured vaults by professional custodians.
- You can sell it anytime, or convert it into physical gold later if you want.
So, digital gold is a way to own actual gold without physical handling.
Why digital gold became popular
People prefer digital gold because:
- You can start with very small amounts (even ₹10 or ₹100)
- No making charges like jewellery
- Prices are transparent and linked to gold market rates
- You can sell anytime
- No safety or storage concerns
- Easy to track in an app
This makes it ideal for beginners, regular savers, and people who want pure gold exposure without jewellery premiums.
How digital gold works (the mechanics)
Here’s the flow:
- You buy gold online via an app
- The app allocates gold to your digital wallet at current market price
- The gold is stored in a secure vault with insurance
- Your ownership is recorded digitally
- Price movements in gold reflect in your balance
- You can sell back anytime or request delivery
Apps usually charge a small fee, but there are no making charges.
Step-by-step: how to buy digital gold in India (2026)
Step 1 — Choose a trusted platform
There are many apps in India that let you buy digital gold. When choosing one, check:
- Credibility and reviews
- Whether the gold is stored in insured, secure vaults
- Clear pricing and fee structure
- Ease of buying and selling
- Option to convert to physical gold (if you want)
Some apps also link directly to your UPI or banking.
Step 2 — Create your account and verify
You will need to:
- Sign up with your mobile number
- Complete KYC (PAN + Aadhaar or similar ID/address verification)
- Link your bank account or UPI
KYC is mandatory for financial transactions and compliance.
Step 3 — Add money to your wallet
Once your account is ready:
- Go to “Add Money” or “Wallet” section
- Choose your payment method
- UPI
- Net banking
- Debit card
- Enter the amount you want to invest
Your wallet shows your INR balance ready for buying gold.
Step 4 — Buy digital gold
Now you can buy gold.
- Go to “Buy Gold” section
- Enter amount (₹10, ₹100, ₹500, ₹1,000 or more)
- Confirm price and total grams you’ll receive
The app deducts money and adds gold to your digital gold balance immediately.
That’s it — you now own digital gold.
How much gold you own
Digital gold shows ownership in:
- grams
- fractions of grams
For example:
- ₹500 might get you 0.015 grams
- ₹2,000 might get you 0.06 grams
depending on the current gold price.
Your balance updates in real time with gold market moves.
How and when you can sell digital gold
You can sell your digital gold anytime, usually at market price.
Steps:
- Go to “Sell Gold” section
- Enter amount or quantity
- Confirm sale
- Money gets credited to your bank
Selling is instant or near-instant, with proceeds hitting your account quickly.
Can you get physical gold delivery?
Many platforms allow physical delivery if:
- You reach a minimum threshold (for example, 5–10 grams or more)
- You pay delivery and making charges
This is optional. Most people hold digital form unless they want jewellery.
Costs and charges to know
Digital gold charges are usually:
- A small platform fee
- A possible spread between buy and sell price (slightly lower sell rate)
- Physical delivery charges (if you pick physical gold)
But no making charges, and often no storage fee.
Always check the fee section before confirming a buy.
Taxes you should know
Digital gold is treated like physical gold for tax purposes:
- Capital gains tax when you sell
- Holding less than 24 months → short-term gains
- Holding more than 24 months → long-term gains
- Keep invoice and sell transaction records for tax filing
- Record buy price and sell price for accurate calculation
If you convert to physical gold later, tax rules still apply based on when you sell.
Risks you should understand
Digital gold is simpler than jewellery, but it still carries investment risk:
- Gold price can go down
- Some platforms may have higher spreads
- Liquidity may vary slightly during market stress (rare)
- Always confirm custody and insurance details
It is not a guaranteed return product — it reflects gold market price.
Comparison with other gold options
Digital gold vs Physical gold
- No storage worry
- No making charges
- Easy on small budgets
- Cannot wear as jewellery
Digital gold vs Gold ETFs
- No demat account needed
- Often smaller minimum buy
- ETFs may have lower spread and tax benefits
Digital gold vs Gold Bonds
- Digital gold has no interest
- Gold bonds pay interest
- Bonds have lock-in; digital gold is liquid anytime
Tips for smart buying
- Buy in small, regular amounts
- Track price trends but don’t time the market
- Compare platforms for fees
- Keep clear records for taxes
- Only buy from trusted apps
Final thoughts
Buying digital gold in India in 2026 is one of the easiest and most practical ways to own gold. You don’t deal with shops, purity doubts, making charges, or lockers. You buy gold at market price, watch its value grow or fall, and sell when you want — all from your phone.