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Gold guide
Fractional gold from a platform, stored by the seller. Useful for very small amounts — and structurally different from every SEBI-regulated route on this hub.
SEBI issued a public caution in November 2025 stating that digital gold is not offered through SEBI-regulated gold products, and neither RBI nor SEBI regulates it under a dedicated framework. As of September 2026 the government is reported to be considering RBI/SEBI oversight with a 1:1 physical-backing requirement — but no official framework has been notified, so that remains reported, not fact.
Sources: SEBI — press release 70/2025, "Caution to public regarding dealing in 'Digital Gold'" (8 Nov 2025) · updates log.
Mechanics
Due diligence
LetsInvest lists no digital-gold provider rows: no provider's charges and custody facts have been verified from primary pages yet. Until they are, run every platform through this checklist yourself.
Ask for evidence of 1:1 physical backing — vaulted where, audited by whom, published how often. Your holding depends entirely on the seller actually holding the gold on its stated terms.
The platform's buy price versus its sell price is the usual cost, plus any storage, making or delivery charges. GST treatment depends on how the platform structures the sale — check the invoice, not the marketing page.
Only the platform you bought from buys it back, at its own price. Check lock-ins, storage-period limits after which charges start, minimum delivery sizes, and delivery fees before assuming you can convert small balances to metal.
None of the securities-market protections that cover ETFs and funds: no exchange, no depository, no regulated vault manager. Size any holding accordingly.
FAQs
Not as a securities product. SEBI issued a public caution in November 2025 stating that digital gold is not offered through SEBI-regulated gold products, and neither RBI nor SEBI regulates it under a dedicated framework. As of September 2026, the government is reported to be considering RBI/SEBI oversight with a 1:1 physical-backing requirement, but no official framework has been notified. Physical gold, gold ETFs, gold funds and EGRs each have their own, different framework.
Both give gold exposure without metal in hand. A gold ETF is a listed scheme whose units you buy on the exchange in a demat account; its price can drift from NAV when the scheme is thinly traded. A gold mutual fund is an unlisted fund of fund that you buy and redeem at NAV, which is what makes a monthly SIP straightforward — but it carries its own expense ratio on top of the underlying ETF's. Neither is better in the abstract; the trade-off is demat-plus-exchange execution against SIP convenience and a second layer of cost.
Framework facts reviewed 2026-09-20. This is not a recommendation to buy or avoid digital gold — it is the structure you are buying into, so you can price the counterparty risk yourself. See our methodology.