Digital Gold Hits Festive Highs: Why Investors Are Buying More Than Just Jewellery
In the festive season, Indian shoppers remain highly excited about shopping for festive items, sweets, and lights. One thing that caught everyone’s attention was the digital gold prices hitting an all-time high. It was surprising that the majority of the investors were focusing on the digital gold, yet the reason was more than just a jewellery purchase.
According to the World Gold Council (WGC), jewellery demand in India dropped by 31%, while investment in digital gold rose by 20%. The surge was also because the majority were investing in online gold rather than decorating their neck and wrists.
Likewise, as per The Times of India, digital gold platforms mentioned that the online gold purchases have been continuously thriving since 2022.
In this blog, let’s discuss why digital gold is getting so high in numbers during the festive season. Also, we’ll explore the difference between physical and digital gold, along with what exactly is motivating investors beyond physical jewellery in 2025 and beyond.
Why Is Digital Gold Getting So Much Demand?
a) Easy Purchase In Small Amounts
Since digital gold can be bought in small amounts for just a few rupees as well. You don’t need a large amount to actually purchase the gold. It is a good choice for holding your gold for value and can even fit in with changing financial habits.
b) Transparent Pricing and Vault-based Storage
Digital gold platforms are mostly available at prices for 24K gold. You can rest assured with the best price for a digital unit with the safety of being stored in insured vaults. While traditional physical purchases had making charges and other charges, the digital gold offers the actual price for the gold storage only.
c) Changing Buyer Behaviour in Urban India
Young people in urban cities of India are getting more attracted to digital gold. While some cities, towns, and villages still prefer traditional physical gold purchases. Rather than purely for wearing jewellery, these people see more value in online gold storage.
How Does It Impact Festive-Season Gold Purchases?
In India, purchasing gold or silver jewellery has been associated with the cultural trends rather than just another investment. Physical gold jewellery purchase is one of the crucial things for weddings, gifting, or more. But, while older gold jewellery purchases were to show off and display, now it’s more about buying gold for value and long-term investment.
One of the major benefits of the digital gold purchase is the option to shop in small amounts, easy purchase, and safe storage. However, the choice of physical vs digital gold purely relies on one’s personal decision and preference. If you’re the person who loves to wear visible jewellery, go for the traditional jewellery. If you’re looking for a gold investment for savings or storage/maintenance issues, digital gold can be a great option.
Final Comments
Festive time in India is the time when every other household prefers to purchase gold. However, the way of purchasing gold has seen a significant transformation. From purchasing physical gold to investing in online (digital gold), people are considering safer, storage-free, and hassle-free purchases.
Although we can’t say that digital gold is replacing physical gold in any way. Still, there is a significant shift in the trend with urban investors choosing “gold for holding”.
Disclaimer: The information provided in the article is written purely for educational and informational purposes. Please avoid using this data or information for any kind of investment or purchase. It is advised to perform your own research or consult with a financial advisor before making any investment.
Chandan Pathak
Equity Research Analyst