As the festive season approaches, India is witnessing a remarkable shift in the way people invest in gold. Once confined to jewellery shops and physical coins, gold buying has now gone digital. According to the National Payments Corporation of India (NPCI), digital gold purchases via UPI have surged by nearly 96% in 2025, reflecting the growing trust in online payment platforms. But while convenience is driving this trend, experts warn that digital gold comes with its own set of risks.
UPI Fueling Digital Gold Growth
The use of UPI has made investing in gold as simple as sending money to a friend. NPCI data shows that transaction volumes skyrocketed from 50.93 million in January 2025 to 99.77 million in August 2025. In terms of value, the purchases grew from ₹761.60 crore to ₹1,183.73 crore during the same period—an impressive 55.4% growth in just eight months.
Source: NPCI data
Month-Wise Digital Gold Transactions
| Month 2025 | Transaction Volume (million) | Transaction Value (₹ crore) |
|---|---|---|
| January | 50.93 | 761.60 |
| February | 53.13 | 813.93 |
| March | 64.96 | 866.43 |
| April | 68.40 | 978.24 |
| May | 79.43 | 983.24 |
| June | 85.46 | 948.05 |
| July | 95.72 | 1,020.24 |
| August | 99.77 | 1,183.73 |
Popular platforms like Paytm, PhonePe, Google Pay, along with jewellers such as MMTC-PAMP, Augmont Goldtech, Tanishq, and Senco Gold, are leading this digital gold revolution. Even small-town investors are showing strong interest in this modern form of investment.
Why Gold Is Attracting Investors in 2025
Gold has been one of the best-performing assets of the year. As per the All India Sarafa Association, gold prices in Delhi touched ₹1,18,900 per 10 gram on September 23, up by a massive 50.6% compared to ₹78,950 per 10 gram on December 31, 2024.
On the Multi Commodity Exchange (MCX), October contracts were trading at ₹1,14,179 per 10 gram, which is 27% higher than March 2025 levels. At a time when the stock market has struggled to deliver new highs since September 2024, gold has clearly outshone equities and even silver.
A Cultural Shift in Indian Gold Buying
In India, gold is more than just an investment—it’s a symbol of prosperity, tradition, and cultural pride. From Dhanteras purchases to weddings, gold holds a timeless place in Indian households.
Interestingly, the World Gold Council reported in December 2024 that Indian women own about 24,000 tonnes of gold, accounting for nearly 11% of the world’s total. This is more than the combined gold reserves of the US, Germany, and Italy.
The entry of digital gold is now reshaping how Indians approach this age-old asset. The flexibility to invest in small amounts, high liquidity, and the option to redeem in jewellery or cash are making digital gold a popular choice among millennials and tech-savvy investors.
Risks of Buying Digital Gold
While digital gold offers convenience, it also carries serious risks that investors must understand before rushing in this festive season:
- No Regulatory Protection: Digital gold is not regulated by SEBI or RBI,There is no investor protection mechanism or official grievance redressal system, SEBI has even banned registered advisors from recommending digital gold due to high risk.
- Cybersecurity Concerns: Online platforms face constant threats of hacking, In June 2025, cybercriminals stole ₹1.95 crore worth of digital gold from more than 400 customer accounts through a vulnerability in an NBFC app.
- Transparency & Storage Issues: Companies claim your gold is stored in secure vaults, but investors cannot independently verify it, This lack of transparency raises concerns of fraud or mismanagement.
Should You Invest This Festive Season?
Digital gold is convenient for short-term, small-ticket purchases, but it is not the safest choice for long-term investment. Alternatives such as Sovereign Gold Bonds (SGBs), gold ETFs, or physical gold are safer since they are regulated and backed by institutions.
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This festive season, if you plan to buy gold for cultural reasons or as a gift, small amounts of digital gold may work. However, for wealth creation and stability, experts recommend regulated and transparent options.