Digital Gold Investment Myths Busted 2025 | DealPlexus

Digital gold allows you to invest in gold online in fractional units, stored securely in insured vaults.

Unlike physical bars or jewellery, this gold is tangible and 24‑carat pure, yet accessible via smartphone, ideal for disciplined saving without worrying about purity, theft, or locker costs. It offers liquidity and simplicity, backed by accredited entities and third-party audits.

Myth #1: Digital Gold Isn’t Real Gold

A common misconception: digital gold is just digital fluff. Platforms such as those using MMTC-PAMP, Augmont and SafeGold protocols store actual physical gold for each purchase, verifiable by trustees like Vistra or Brinks. Your holding represents true 24K gold, not virtual credit.

Myth #2: You Need Deep Pockets to Invest

Another myth: digital gold investment requires significant capital. You can start investing in digital gold with amounts as small as ₹100 or ₹500. This inclusivity allows even modest investors to invest in gold online without delay or barriers.

Myth #3: Digital Gold Is Less Secure than Physical Gold

It’s intuitive to feel safer holding physical gold, but storage risks, purity issues, and theft are real concerns. Digital gold, stored in secure vaults, insured, and audited, eliminates these worries. Some platforms offer conversion to physical gold on demand.

Myth #4: Digital Gold Is Difficult to Liquidate

Sceptics worry that digital gold isn’t as easily sold as coins or bars. Not so! Most platforms offer instant liquidity, sell anytime and receive credit in your bank account, often within 48 hours. No brokers, no waiting to haggle.

Myth #5: There’s Heavy Taxation or Hidden Charges

Digital gold investment follows the same tax treatment as physical gold. Capital gains on resale are taxed under capital assets rules, with no special charges. Transparency is crucial: top platforms disclose any GST, spread, or redemption fee upfront.

Myth #6: Digital Gold Isn’t Part of India’s Regulated Finance System

True, digital gold investment isn’t yet regulated as securities under SEBI. However, it is issued, stored, and audited by established entities such as AUGMONT. SEBI and RBI are evaluating formal regulation to integrate digital gold into mainstream investment frameworks.

Myth #7: Digital Gold Doesn’t Help Your Portfolio Over the Long Term

Some assume digital gold investment is only a safe-haven asset with no growth potential. On the contrary, it can serve as an effective hedge during economic uncertainty. Historically, gold exhibits lower volatility compared to equities and offers balance during downturns.

Why Should You, the Boomer Uncle of the Steel World, Care About These Myths?

Over the decades, steel professionals have tracked quality, purity, and regulation closely. The same scrutiny applies here:

  • Transparency matters: Ensure that the digital gold platform discloses vault audits, backup providers, and the fee structure.
  • Trust and Tradition meet Modern Tech: Just as Fe‑500 and Fe‑600 TMT grades evolved under BIS standards, digital gold is maturing under institutional storage and audit frameworks.
  • Easier Record Keeping: You avoid storing physical gold or chasing hallmarks; it's digitally recorded, mobile-accessible, and backed by reputed refiners.

Final Thoughts: Digital Gold Is Tradition Made Smarter

Gold has long symbolised security and stability in Maharashtra steel markets, Bihar’s crane industry, or Mumbai’s logistics hubs. Its legacy remains intact, but now upgraded with digital access, fractional units, and secure vaulting.
Digital gold is not a replacement; it’s an enhancement. Whether it's for building a rainy-day corpus, supplementing your portfolio as a hedge, or enabling incremental purchase with every project’s profit, it brings ease without compromising reliability.
In short, the myths don’t hold. Digital gold is real, accessible, secure, and transparent. And yes, perfectly suitable for the steel veteran still building equity both in business and investment.
Gold’s value hasn’t changed, only how you invest in it has. With DealPlexus, digital gold becomes more than just a click-to-buy asset. It’s a secure, transparent, and SEBI-aligned solution tailored for investors who value legacy, liquidity, and long-term stability, all without compromising on control.