SafeGold CEO On Digital Gold Vs Physical Gold; Here's What He Said

Mathur further highlighted that digital gold offers unique advantages, such as purchasing in small increments and leasing, which are not typically available when buying gold from traditional shops

Digital Gold Vs Physical Gold

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Gold, one of the most cherished metals for centuries during auspicious occasions, continues to hold its allure today, but it mostly ends up securely stored in lockers. It outshines many other asset classes due to its guaranteed returns and ability to shine through market volatility.

However, technology is now disrupting this age-old tradition. This digital platform has changed gold investment by offering innovative methods to buy, sell, and securely store vaulted gold at low entry sizes, accessible 24/7 through smartphones.

In a conversation with the news agency PTI, Gaurav Mathur, founder and CEO of SafeGold, said digital gold is more suitable according to current market trends. "Digital gold has zero cash payments and digital KYC and is ideal for small ticket purchases of gold. It benefits from current market trends at multiple levels, as is evident from the scale and growth of our business," he said.

Talking about traditional gold and how it differs from digital gold, he said that digital gold offers significant advantages. Firstly, it provides ownership of physical gold securely stored in top-tier vaults, eliminating the need for personal locker storage. Secondly, it facilitates a wide array of transactions related to gold through digital platforms.

With digital gold, all traditional functions of physical gold—buying, selling, converting to jewellery, gifting, and using as collateral—are executed faster, more efficiently, and at significantly lower costs. These transactions can be conducted entirely through your phone, eliminating the need for visits to physical stores or lockers, he added.

Mathur further highlighted that digital gold offers unique advantages, such as purchasing in small increments and leasing, which are not typically available when buying gold from traditional shops.

Historically, the gold industry has been predominantly unorganised, but a significant trend now is the shift towards the organised sector. This shift is fueled by regulatory measures such as GST implementation and mandatory hallmarking of gold jewellery, which are pushing the industry to formalise.

Consumer preferences are also evolving towards lower-cost gold jewellery and investment options. Digital gold, with its cashless transactions, digital KYC processes, and suitability for small purchases, aligns perfectly with these market shifts.