Finshots Daily How digital gold became India's favourite unregulated investment
Nov 14, 2025
Explore the rise of digital gold as a popular yet unregulated investment choice in India. The discussion covers the risks associated with its legal gray area and how it became mainstream after its launch by Augmont. Learn about the implications of SEBI's advisory on brokers and the potential dangers of insolvency. Investors are advised to consider safer options like gold ETFs or gradual selling to safeguard their assets. It's a deep dive into a booming trend that every investor should know about.
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Digital Gold Sits Outside Regulation
- Digital gold doesn't fit existing regulatory categories so no single regulator oversees it.
- It functions as a digital claim on physical gold stored by platforms rather than a regulated financial instrument.
How Augmont Kickstarted Fractional Gold
- In 2012 Augmont began selling fractional digital gold allowing purchases from as little as ₹1.
- The company stored equivalent physical gold in third-party vaults and offered instalment features that attracted small investors.
Partnerships Fueled Rapid Adoption
- Partnerships with MMTC PAMP and fintechs scaled distribution and custody for digital gold.
- Platforms used digital gold to sidestep stricter wallet KYC and to onboard users into broader services.