The Morning Brief Digital Gold: The Hype and The Blind Spots
Nov 14, 2025
In this enlightening discussion, Abhinav Kaul, Senior Assistant Editor at ET Wealth, and Harshad Chetanwala, Co-founder of MyWealthGrowth.com, delve into the booming trend of digital gold. They explore the backend mechanics of micro-purchases and the custodianship of digital assets. The conversation highlights significant regulatory concerns, including hidden fees and lack of transparency that could threaten investor confidence. Harshad also shares crucial investment advice, recommending a cautious approach and appropriate gold allocation for long-term savings.
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Rapid Rise Driven By Micro Purchases
- Digital gold has surged recently due to smartphone UPI-led micro purchases and price gains in gold itself.
- Adoption nearly doubled from Jan to Sep 2025 as platforms enabled tiny, 24/7 purchases backed by vaults.
Digital Gold Is An Electronic Receipt
- Digital gold functions as an electronic receipt for physical metal stored in vaults by importers and custodians.
- Fintech apps act as distributors while a few importers/custodians handle buying, hedging and secure storage.
Few Custodians Hold The System Together
- A handful of custodians like MMTC PAMP dominate storage and issuance of certificates with unique IDs.
- Investors can verify holdings with custodians but most platforms rely on the same few vault operators.