As gold prices stay elevated, should digital gold be your smarter Dhanteras buy?
Even though digital gold broadens access to gold, allowing buyers to explore smaller investments, they must consider whether the product aligns with their financial needs and risk tolerance
As India prepares for Dhanteras, gold buyers are weighing festive traditions against elevated prices, with digital platforms offering an alternative for consumers looking to purchase the precious metal in smaller amounts.
Gold prices eased in September after a strong rally earlier in the year, providing some relief to buyers ahead of the festive season. According to the World Gold Council's October 2026 India Gold Market Update, domestic gold prices declined 4.8 per cent in September. Prices remained comparatively stable in October, although gold continued to trade at historically elevated levels.
More takers for digital gold
The price movement comes as digital gold gains traction among Indian consumers. According to the World Gold Council, India's digital gold purchases reached ₹2,590 crore in September 2026, an increase of 83 per cent year-on-year. Purchase volumes stood at approximately 1.7 tonnes.
Between January and September, digital gold purchases totalled 16.3 tonnes, compared with 9.2 tonnes during the corresponding period in 2025. The figures point to growing interest in online gold purchases, particularly among consumers seeking flexibility over how much they invest and when they buy.
Also read: Gold or silver: What should you buy now? How do you decide?
Unlike jewellery or physical coins, digital gold allows consumers to purchase fractional quantities through mobile applications, often starting with relatively small amounts. This can make gold accessible to first-time buyers and those who prefer to spread purchases over time rather than commit a large sum at once.
Is it a safe alternative?
However, ease of access does not necessarily make digital gold a suitable investment for everyone. Consumers should understand how the gold is held, whether storage or transaction charges apply, and what conditions govern selling or physical redemption. Digital gold products offered by online platforms are not regulated by the Securities and Exchange Board of India (SEBI) in the same way as securities and exchange-traded gold products.
For investors seeking exposure to gold, gold exchange-traded funds (ETFs) may be another option to consider, depending on their investment objectives and access to a demat account. As with physical gold, returns from market-linked products depend on price movements, and losses are possible.
Also read: Gold paradox: Indians sell more but buy more too; a big question is lost in between
The festive season is also prompting digital platforms to introduce promotional incentives. BharatPe's Invest BharatPe platform is offering eligible customers 5 per cent extra digital gold on qualifying one-time purchases above ₹100 until November 10, 2026. The company's festive campaign also includes benefits for qualifying new Gold Systematic Investment Plans, subject to specified conditions.
How you should buy your gold
For households deciding whether to buy gold this Dhanteras, the choice ultimately depends on the purpose of the purchase. Jewellery may serve cultural, personal and gifting needs, while investment buyers may view gold as one component of a diversified portfolio.
Also read: Gold ETFs vs gold FoFs: What investors can do amid investment restrictions
Although a price correction can create an opportunity for buyers, it does not guarantee future appreciation. Consumers should compare prices, understand associated costs, and consider their financial goals before buying.
As digital platforms broaden access to gold, the key consideration for buyers is not simply how easily they can purchase it, but whether the product aligns with their financial needs and risk tolerance.
(The content above is for information only, and does not constitute investment advice.)
