Good returns, no-theft risk among reasons driving digital gold investments: NAVI

Digital gold is a unique offering that allows customers to invest in a traditional asset class in a modern and innovative format. Good returns and no-theft risk were among reasons for buying digital gold whereas uncertainties about investment processes deterred people from going for the option, a recent study conducted by Navi shows.

The good returns offered by gold is considered as the most important factor of making investment in the yellow metal. Around 50% respondents of the study have invested because gold has delivered good returns in the recent past. Respondents think that as there is no risk of theft in case of digital gold, they consider it for making investments. Around 39% feel, digital gold is less risky than keeping physical gold at home as there is no worry of theft.

According to the survey, the satisfaction of buying the purest form of gold is the third important factor for making investment. Around 36% respondents have invested in ‘Digital Gold’ due to its purity aspect i.e. ability to buy 24-carat pure gold.


The fourth factor for investment is convenience. Around 25% respondents like the convenience of buying, selling, and tracking digital gold investment anytime via apps offering digital gold.

The survey also mentioned the top barriers which are holding back digital gold investment.

The topmost barrier is uncertainty about the investment process & benefits. According to 67% of non-users were uncertain about the process of investing in digital gold or the benefits it offers.

The next barrier is ‘touch & feel’ of physical gold. Around 44% respondents preferred physical gold due to the ability to ‘touch and feel’ gold bought from a jeweller. The survey mentioned other factors as well. Other factors for not investing in digital gold included lower returns compared to stocks, fear of online fraud, GST being charged while buying Digital or Physical gold (37% for each reason)

The findings from the study done by Navi highlight the need to drive more financial literacy and address common consumer concerns and questions about the benefits of digital gold. This can drive wider adoption, allowing consumers to enjoy gold's timeless appeal in a modern, innovative form, said the press release.