Digital Gold: Why you should invest in it in 2025

Q: Is Digital gold good for investment?

Digital gold gives you all the benefits of physical gold while negating the cons that physical gold comes with like high making charges, storage issue etc. Additionally, with digital gold options like Gullak Gold+, you also get extra returns on gold every year.

Q: Is it legal to buy Digital gold?

Yes, digital gold is legal in India.

Q: Is Digital Gold real Gold?

Yes, digital gold is real gold. When you buy digital gold an equivalent quantity of physical gold is stored in secure vaults under your name. Digital gold is 24K pure gold.

Q: Which is better, FD or digital gold?

- Digital Gold provides capital appreciation vs FDs have fixed returns - Digital gold gives higher returns over the long-term, while FDs are great for short-term goals. So, if your goal is a long term one, digital gold might be worth exploring while the fixed returns from FDs are ideal for short term goals

Q: Can I withdraw digital gold?

Yes, you can withdraw digital gold as cash or order gold coins. With apps like Gullak, you can even redeem gold jewellery at India's Top jewellers like Malabar, Tanishq, Kalyan and more

By Team Gullak

Last updated : Aug 11, 2025

6 min read

What is Digital Gold?

Digital Gold is a digital mode of buying gold that allows investors to benefit from all the perks of physical gold like high returns, stability etc without dealing with all the hassles physical gold comes with like storage & high making charges. With digital gold, you are basically buying physical gold. This physical gold automatically gets stored in the sequel vault and you benefit from gold price increase. You can withdraw whenever you want as cash or get physical gold of equivalent value.

Is it good to invest in Digital Gold?

Digital Gold has 5 major benefits:

Small Initial Investment: Start with as little as ₹10. Unlike physical gold, digital gold lets you invest even in small amounts.
No Storage Charges: Your gold is securely stored in Sequel vaults, ensuring 100% safety at no extra cost.
No Making Charges or Wastage Fees: You can sell digital gold anytime you want & redeem it as cash or gold.
Flexibility: Sell your digital gold anytime or redeem it as cash or physical gold at your convenience.
Extra Gold: With Digital Gold on apps like Gullak, you also get an extra 5% Gold every year on top of Gold's annual retruns

Digital gold vs Physical Gold

Let's understand how your returns will look with the help of a Digital gold vs Physical Gold calculator.

Compare Gullak Gold+ vs Physical Gold

Select Amount to invest

₹

Select time period

Years

Let's take a look at the difference in investing in digital gold vs physical gold with the help of a side by side comparison.

Table: Digital gold vs physical gold

Parameter	Digital Gold	Physical Gold
Returns	Gold price increase	Gold price increase
Making and wastage charges	None	Hefty making charges around 18% or higher
Minimum amount	₹10	Can be in thousands or more depending on the choice of jewellery
Type of investment	One time or daily/weekly/monthly SIPs	One time transaction
Taxation	An LTCG of 12.5% is applied on profits if you withdraw as cash, no tax is incurred if you redeem as physical gold	There's no taxation on physical gold

Buy Digital Gold at India's #1 Gold app

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Where to buy Digital Gold?

Gullak is one of India's leading digital gold apps. Here's why you should consider Gullak for digital gold investments.

Table: Digital Gold on Gullak vs Other Digital Gold Apps

Criteria	Digital Gold on Gullak	Other digital gold apps
Extra Gold	~5% Extra gold per year on top of market price appreciation (effectively ~16% p.a.) via Gullak's feature, Gold+	Most other apps do not offer Extra Gold; among those who do, maximum offer ~3.5%
Redemption options	Gold can be withdrawn via cash, gold coins or as jewellery at India's top jewellers like Tanishq, Kalyan etc	Most apps offer cash and gold coins
Goal based investment	Gullak can custom plans for your life's big goals, be it daughter's wedding, gold for gifting etc	Most apps don't have this goal-based approach
Trust worthy player	Gullak is among the biggest digital gold player in the market and has an AUM of more than 700Cr	Most digital gold players do not have high AUMs

How to buy Digital Gold?

Digital gold can be bought from any digital gold app like Gullak. Here’s how it works:

Download the Gullak app & sign up with your name & mobile number.
Select Digital Gold on the home screen.
Select amount & choose between one-time investment or SIPs.
Make your payment using any UPI app or net-banking and you’re good to go.

The process of buying digital gold on Gullak is very simple and users can get started in just 30 seconds

Invest in Digital Gold in less than 30 secs

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How to make the most out of Digital Gold investment?

On an average, gold prices appreciate by 11%pa(historical trend). With Gullak’s feature, Gullak Gold+, you not only benefit from this but your gold quantity also increases by 5% every year.

For example, if you invest 100 gms in Gullak Gold+, it’d become 105 gms in 1 year and 148 gms in 8 years. All of this 148 gms would benefit from gold price increase as well. Below are some of the key features of Gullak Gold+:

1. Gold price increase + Extra 5% gold pa

2. Daily/weekly/monthly SIPs available

3. No lock-in period

4. Investments can be withdrawn as cash or gold coins or redeemed as jewellery at Gullak’s partner stores, including CaratLane by Tanishq and Kalyan Jewellers.

5. 100% safe investments: Gullak takes 100% collateral protection for your investments, ensuring maximum security.

Investing in digital gold with Gullak is particularly useful for long term goals. Let's understand with an example -

If you have a 10 year long goal that needs gold worth 4Lakhs,

With Digital Gold, if you invest 1 Lakh today, you'll have 2.8 Lakhs in 10 years.

But with Gullak Gold+, you'll get 4.41 Lakhs in the same time frame! Let's take a look at the impact of the extra gold on Gullak over even longer time frames with an initial investment of ₹1 Lakh

Table: Year on Year returns on Digital Gold

Year	Gullak Gold+	Digital Gold
5 years	2.1Lakhs	1.68Lakhs
10 years	4.4Lakhs	2.8Lakhs
15 years	9.2Lakhs	4.8Lakhs
20 years	19.4Lakhs	8Lakhs

You can visualise the impact of Gullak Gold+ more with the help of your Gold investment calculator

Only app where you get Extra 5% Gold pa

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Concluding thoughts on Digital Gold

Digital Gold is a great way to invest in Gold. It gives you all the benefits of gold while removing all the cons that physical gold comes with like storage, making and wastage charges. If you are looking to invest in digital gold, Gullak Gold+ can take your digital gold investment to the next level with the benefit of gold quantity increase on top of gold price increase.

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