A Study on Factors Influencing Investors to Shift from Physical Gold to Digital Gold in India

Abstract

Gold has historically been the most preferred investment asset in India, driven by cultural traditions, wealth preservation, and financial security. In recent years, digital gold has emerged as a modern alternative to physical gold investment, allowing investors to purchase, sell, and store gold electronically through online platforms and mobile applications. The rapid growth of fintech platforms, the UPI ecosystem, and increasing smartphone penetration have significantly contributed to the adoption of digital gold.
This study examines the key factors that influence investors to shift from physical gold to digital gold in India. The research focuses on convenience, affordability, security, accessibility, liquidity, technological adoption, and investor awareness as primary drivers of this transition. By analysing consumer responses and investment behaviour, the study aims to understand how digital platforms are transforming traditional gold investment practices.
The study also explores investor perceptions regarding the advantages and limitations of digital gold investment and evaluates the relationship between digital awareness and the intention to invest in digital gold. The findings of this study provide valuable insights for fintech companies, financial institutions, and policymakers in developing better frameworks for digital gold investment.