Now Reading: Gold and silver price fall boosts digital gold in UP
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Gold and silver price fall boosts digital gold in UP
The Story in Brief
A fall in gold and silver prices has driven a rise in digital gold investments in Uttar Pradesh, with buyers also placing advance bookings for jewellery. Financial expert Akhil Kumar said digital gold avoids making charges and extra fees, but warned investors to be cautious.
Digital gold is not directly under SEBI or other government bodies, offering less legal protection. A 3 per cent GST and the bid-ask spread can cause initial losses. Some platforms do not allow holding digital gold for more than five years, and if the app shuts down, retrieving the gold may be difficult. The price drop has raised hopes among investors and bullion traders for a strong silver demand in 2026.
Indian Opinion Analysis
The price drop in gold and silver has made digital gold a more visible option, but the real decision for a retail investor is whether the convenience of buying 24-carat gold by the gram outweighs the lack of direct SEBI oversight and a 3% GST. The story leaves unsaid how many platforms cap holdings at five years and what happens if an app shuts down, which are unresolved risks for anyone treating digital gold as long-term savings. The next step for a buyer is to weigh the lower entry cost and liquidity against those legal and cost gaps before committing.
Source: amarujala.com
This brief was synthesised by AI from the source linked above. Methodology and corrections.
