Digital Gold Sees ₹4,000 Crore Buying Spree in January 2026 Amid Record Gold Prices

Amid soaring gold prices, Indian investors continue to show strong confidence in gold as a safe-haven asset. Digital gold purchases hit a new record in January 2026, driven largely by UPI-based transactions, highlighting a growing preference for convenient, app-based gold investments despite regulatory concerns.

Digital Gold Records ₹4,000 Crore Worth of Purchases

Despite gold prices touching record highs, Indian investors’ enthusiasm for gold remains undiminished. In January 2026, digital gold buying reached an all-time high. According to data released by the National Payments Corporation of India (NPCI), digital gold sales via UPI touched ₹3,926 crore during the month.
During this period, a total of 219 million (21.9 crore) transactions were recorded.

UPI Drives the Majority of Digital Gold Purchases

More than 90 percent of digital gold purchases in India are now being made through UPI. UPI has emerged as the most preferred digital payment platform in the country.
Popular platforms such as Paytm, PhonePe, Amazon Pay, Google Pay, and Tanishq apps are witnessing significant traction as users increasingly buy digital gold through these applications.

Digital Gold Sales Growth Since 2025

Digital gold sales have been steadily rising since early 2025. In January 2025, digital gold transactions were valued at ₹762 crore. By October 2025, this figure surged to ₹2,290 crore.
However, following a warning issued by SEBI in November 2025, sales dipped to around ₹1,200 crore, accompanied by a decline in transaction volumes.
Demand rebounded strongly in December 2025 due to global uncertainty and market volatility, with purchases amounting to nearly ₹2,100 crore.

Rising Investment Amid Market Volatility

The record-breaking digital gold sales in January 2026 clearly indicate that investors view gold as a safe investment during uncertain market conditions.
Despite geopolitical tensions and rising gold prices, young investors are increasingly gravitating toward digital gold. However, the rapid growth of digital gold has also raised several questions regarding investor safety and regulation.

SEBI Issues Warning on Digital Gold Products

While the Reserve Bank of India (RBI) has not issued any specific warning regarding digital gold, the Securities and Exchange Board of India (SEBI) released a significant cautionary note in November 2025.

SEBI clarified that digital gold or e-gold products are neither classified as securities nor as commodity derivatives. As a result, these products remain completely unregulated and lack a robust investor protection framework.

Regulatory Risks Highlighted by SEBI

SEBI stated that investing in digital gold carries inherent risks. RBI does not classify digital gold as a banking product, deposit, or payment instrument, which places it outside the RBI’s regulatory purview.

This lack of regulatory oversight raises concerns about investor safety, transparency, and grievance redressal mechanisms.