“This article expresses my personal analysis based on publicly available financial data and market reports.”

Imagine buying gold just by tapping your phone — seems modern, easy, and smart. But when the regulator steps in and says, “Hold on, this could be risky,” you pause. In November 2025, the Securities and Exchange Board of India (SEBI) issued precisely that warning about digital gold products: unregulated, outside its oversight, and potentially exposing investors to serious risks.

Why “Digital Gold Risk” is the focus in 2025

SEBI states clearly: digital or e-gold products offered by online apps and platforms are not regulated under its framework.

They are neither notified as securities nor treated as commodity derivatives. That means the protections you get when buying mutual funds, shares or formal commodities simply don’t apply. 

In 2025, when fintech apps and micro-investment platforms bombard us with “buy pure gold” promises starting at ₹10 or ₹100, the convenience is real—but so are the blind spots.

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What exactly are the risks of unregulated digital-gold platforms

Let’s break them down in everyday terms:

• Counterparty risk: If the platform fails, or the entity behind the gold isn’t transparent about vaulting, storage or redemption, you may lose access to your “gold”. SEBI explicitly mentions this.
• Operational risk: Tech glitches, app hacks, mis-management of gold inventory—all possible when regulation is missing.
• No investor-protection mechanism: You cannot fall back on SEBI’s investor grievance channels or mandated audits. “None of the investor protection mechanisms under securities market purview shall be available,” SEBI warns. 
• Redemption ambiguity: Some platforms may allow you to “sell” digital gold, but whether you get actual physical gold, or the payout is truly backed, can be unclear.
• Misleading marketing: Big brand tie-ups and holiday-season ads can lull you into thinking it’s “safe gold”. But brand doesn’t equal regulation.

For example: although not recent, recall the cyber theft from a digital gold app where gold worth crores was stolen—think of that when trusting a new platform.

What are the safer alternatives? (Stick with the rules)

If you still want gold exposure—but with regulation and protection—there are better routes:

• Gold ETFs: These are funds offered by registered mutual funds. They trade on stock exchanges and fall under SEBI’s regulatory purview.
• Electronic Gold Receipts (EGRs): Tradable receipts of gold holdings on the exchange. 
• Gold commodity derivatives: If you’re experienced, you can trade gold futures/contracts at regulated commodity exchanges.

Yes, they may not have the “tap an app and buy ₹10 gold” convenience feel—but they give you legal protection, transparent audit trails, and oversight.

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Real-world takeaways for you the investor

Let’s get practical, with a human voice:

• If you see an app proclaiming “Invest in gold for ₹100—redeem any time”, pause. Ask: Who holds the physical gold? Is there custodial audit? What happens if the app shuts down?
• Think “what if”: If the company behind the platform goes bankrupt, do you have recourse? In many unregulated models, the answer is no.
• Look at your goal: Are you buying gold for long-term safety (hedge against inflation), or just chasing convenience? For the former, regulated instruments make sense.
• Don’t let FOMO rule you: According to India Today, the gold-hype in festivals, the social-media ads—they tempt us. But SEBI’s warning is timely.
• Diversify: Even if you buy gold, keep it a portion of your portfolio, not all. And choose the vehicle carefully.

Conclusion

My personal take: The idea of digital-gold is seductive—cheap, easy, tech-forward. But in my view, convenience without protection is risky. If I were you (or writing this for myself), I’d either stick to regulated gold options or treat digital gold more like a speculative side-bet, not a core investment. SEBI’s warning is a red flag we should not ignore. Investing should feel secure, not just trendy.

So yes, you could invest in digital gold—but only after you fully understand the platform, risk, and your exit plan. And honestly? Until clearer regulation arrives, I’d sleep better knowing my gold exposure is in a regulated ETF or EGR—not locked in a flashy app.

Stay safe, invest smart.

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Disclaimer: The views and recommendations above are those of individual analysts or brokerage companies, not US News Weeks. We advise investors to check with certified experts before making any investment decisions.

Source : India Today & The Economic Times - SEBI Warns on Digital Gold Risks