Digital Gold is unsafe and you may lose all your Saving parked into digital Gold🚨
🚨Not regulated by SEBI/RBI
Digital gold sold by apps (PhonePe, Paytm, Groww, etc.) is not regulated, so there is no guarantee like mutual funds / banks.
🚨No legal claim if seller shuts down
Your gold is stored by private vault partners. If the company goes bankrupt, recovery can be messy.
🚨Counterparty risk
You rely on the seller + refiner + vault. If any one fails, you face risk.
🚨Holding limit only 5 years
Most providers allow max 5 years storage. After that you must sell or convert to physical, which has extra charges.
🚨High buy–sell spread
Digital gold prices have a 3–6% spread, making it costly compared to ETFs.
🚨All Charges (Short)
1. Making/Storage charges (indirect) included in buy price; usually 2–3%.
2. Buy–Sell Spread 3–6% difference between buying and selling price.
3. 3% GST on purchase (same as physical gold).
4. Delivery charges (if you convert to physical), Making charges + shipping charges apply.
5. Exit charges if vault storage expires. Some providers charge for storage beyond limit.
Summary👇
Digital gold is risky mainly because it’s unregulated and depends entirely on private companies, plus it has hidden buy-sell spreads and storage-related costs.
