gold is traditionally viewed as a safe-haven asset, e-gold helps diversify portfolios and can serve as a hedge against inflation and economic uncertainty. Overall, e-gold combines the stability of gold with the ease and accessibility of digital investment.
Love for gold is not a new thing for Indians with time E Gold is finding its place “eGold” can mean different things in different contexts it can be Digital Gold or EGLD before purchasing “eGold” its important to use your diligence check the platform; for EGLD, understand staking, use cases, and long-term roadmap.
Investing in e-gold (digital gold)—whether through gold-backed tokens, gold ETFs, or app-based “digital gold” products—can be convenient, but it comes with several risks. One major risk is price volatility, as gold prices can fluctuate significantly due to global economic changes, geopolitical events, and market sentiment. Even though gold is often seen as a safe-haven asset, its value can still drop sharply in the short term. Another risk is platform reliability—since e-gold is held digitally through brokers or mobile apps, your investment depends on the security and stability of the provider. If the platform faces technical issues, cyberattacks, or financial trouble, your access to the investment could be affected. Additionally, there may be liquidity risks, meaning you might not always be able to sell quickly at your desired price. Some platforms also charge fees for storage, transactions, or redemption, which can reduce overall returns. Finally, there is regulatory risk, as rules governing digital gold vary by country and may change over time, potentially impacting taxes, ownership rights, or withdrawal options.
In a major investor advisory, the Securities and Exchange Board of India (SEBI) has issued a stark warning to the public about the risks associated with “digital gold” (also known as e-gold) products sold via fintech apps and online platforms. While digital gold has won popularity for its convenience and low entry point, SEBI says investors may be overestimating its safety.
SEBI has made it clear that most digital gold offerings fall outside its regulatory purview. These products are neither classified as securities nor regulated as commodity derivatives.
There’s a genuine risk that the company offering the digital gold (or its vaulting partner) may default, delay redemption, or in worst-case scenarios, shut down. Since these platforms operate outside SEBI’s supervision, there’s less accountability and fewer safeguards.
SEBI also flagged operational risks: Are the claimed holdings of physical gold real? How frequently is the vault audited? Is there transparency about storage partners? These questions often remain unanswered for many platforms
Investors should treat digital gold with caution — especially if they’re using it as a significant part of their portfolio SEBI’s warning underlines that such products lack the regulatory safety net that comes with securities or regulated commodity frameworks.
Kindly Refer to
Privacy Policy &
Complete Terms of Use and Disclaimer.
Author Bio
