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Digital Gold Surge: Huge Demand During Peak Festive and Wedding Season

Invesors Are Increasingly Adopting Digital Gold Due To Convenience and Lower Entry Barriers.

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As India enters its peak festive and wedding season—traditionally the biggest period for gold consumption—consumer buying habits are shifting.

While high and volatile gold prices are limiting casual purchases, demand for gold as an investment asset remains strong. Notably, tech-driven “digital gold” has seen massive growth, despite severe warnings from financial regulators.

Shift from Physical to Digital Gold

Traditional Behavior: Indian households traditionally buy physical gold (jewellery and coins) during festivals and weddings as an auspicious asset.

Emerging Trend: Investors are increasingly adopting digital gold due to convenience and lower entry barriers.

Growth Data: Digital gold purchases reached approximately ₹2,500 crore (~1.6 tonnes) per month between June and August 2026. This represents a 110% Year-on-Year (YoY) increase compared to August 2025.

Price Sensitivity & Macro Drivers

Gold prices have experienced volatility, driven by global macroeconomic factors such as rising crude oil prices, inflation fears, and policy signals from the US Federal Reserve.

High prices are curbing discretionary retail shopping, making systematic digital investments more attractive to price-sensitive buyers.

The Business & Regulatory Challenge

The Regulatory Gap: Unlike Gold ETFs or Sovereign Gold Bonds, digital gold is currently unregulated.

SEBI’s Warning: In November 2025, the Securities and Exchange Board of India (SEBI) cautioned investors that digital gold products:

  • Are not classified as securities or regulated commodity derivatives.
  • Operate entirely outside SEBI’s oversight.

Counterparty & Operational Risk: Because the estimated ₹7,500 crore accumulated over June–August 2026 sits in a regulatory grey area, investors face significant exposure:

If a fintech platform or issuer defaults, investors have no access to official SEBI grievance mechanisms or statutory protection.

Looking Ahead: Future Regulatory Framework

To mitigate these systemic risks, the Indian government is reportedly exploring a joint regulatory framework involving the Reserve Bank of India (RBI) and SEBI. Under proposed rules:

  • ​Digital gold providers would fall under formal oversight.
  • ​Every digital unit sold would legally require 100% physical bullion backing in audited vaults.
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National News

Augmont-NSE Partnership Drives Strong Start for India’s Gold EGR Market, with Over 1,60,357 Units Traded in First Few Hours

Electronic Gold Receipts segment witnesses active two-way trading on day one, with 1,60,375 units traded, representing approximately 6 kg of gold and a traded value of ₹23.34 crore as of 04:25 PM

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India’s gold market took an important step towards greater integration with the commencement of live trading in the Electronic Gold Receipts (EGR) segment on the National Stock Exchange of India (NSE) today. Enabled through the collaboration between NSE and Augmont Enterprises Limited, the launch brings together NSE’s regulated exchange infrastructure and Augmont’s integrated physical gold ecosystem, creating a new avenue for investors to trade physically backed gold.

On its opening day, the EGR segment witnessed active two-way trading, with 1,60,357 units traded by approximately 04:25 PM, representing around 6 kg of gold. The trading activity translated into a cumulative traded value of approximately Rs.23.34 crore during the first session. The segment also demonstrated orderly price discovery, with prices remaining within a narrow intraday range of Rs.1,450.50 to Rs.1,460.00. The bid-ask spread remained between Rs.0.50 and Rs.1.00, indicating continuous two-way quotations and an active order book.


Each EGR represents 100 mg of physical gold, with the underlying gold held in SEBI-regulated vaults. Investors can buy and sell EGRs through their demat accounts on the exchange, while retaining the option of converting their holdings into physical gold, subject to the applicable framework. The segment follows a T+1 settlement cycle, under which trades executed on a particular day are settled on the next business day, facilitating the transfer of securities and funds through the exchange’s regulated clearing and settlement mechanism.

Under the strategic collaboration, Augmont serves as a key physical gold and infrastructure partner for NSE’s EGR segment, supporting the creation, vaulting, redemption and liquidity ecosystem. The gold backing the EGRs is sourced through Augmont’s integrated refining infrastructure, bringing together physical gold processing and exchange-based trading within a regulated framework.

The commencement of live trading marks an important step towards building a more transparent and accessible gold market in India. By enabling standardised gold to be traded through an exchange-based mechanism, EGRs have the potential to strengthen price discovery, improve market participation and create a more integrated ecosystem for physical gold.

Ketan Kothari, Whole-time Director, Augmont Enterprises Limited, said:

“The commencement of EGR trading marks the transition of our collaboration with NSE from building the underlying infrastructure to enabling a live, exchange-traded gold market. The day-one trading activity, continuous two-way quotations and orderly price discovery are important initial milestones for a new market segment.

At Augmont, we have brought together our refining capabilities and physical gold infrastructure to support the creation, vaulting and redemption of EGRs. We believe this initiative can play an important role in making physical gold more accessible, transparent and integrated with India’s formal financial ecosystem. Our focus remains on strengthening the ecosystem and supporting its wider adoption among investors, brokers and other market participants.“

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