Digital gold is rapidly gaining popularity in India, offering a modern twist on one of the country's most traditional investments. According to a recent survey conducted by Navi, a leading financial services company, several key factors are driving Indians to adopt digital gold as an investment option. The survey, which polled both investors and non-investors of digital gold, reveals that the perceived safety, purity, and convenience of digital gold are the primary motivators behind its growing appeal. However, the survey also highlights certain barriers that are holding back wider adoption.
Top Reasons For Investing In Digital Gold
The survey results indicate that digital gold's appeal lies in its ability to combine the timeless value of gold with the benefits of modern technology. Here are the top reasons cited by respondents for investing in digital gold:
Gold Is Considered As Good Returns
50 per cent of respondents cited the historical performance of gold, noting that it has consistently delivered good returns. This makes digital gold an attractive option for those looking to invest in a stable and historically profitable asset.
Digital Gold Is No Risk Of Theft
39 per cent of respondents believe that digital gold is less risky than physical gold, as it eliminates the concern of theft. Unlike physical gold, which needs to be securely stored, digital gold is held in electronic form, offering peace of mind to investors.
Satisfaction of Buying the Purest Form of Gold
36 per cent of respondents are drawn to digital gold for its purity. Digital gold allows investors to purchase 24-carat pure gold, ensuring they get the highest quality possible without the worry of adulteration.
Digital Gold Is More Convenient
25 per cent of respondents appreciate the convenience of digital gold. With the ability to buy, sell, and track investments via mobile apps, digital gold offers unparalleled ease of access and management compared to traditional gold investments.
Barriers To Wider Adoption Of Digital Gold
While the survey underscores the growing interest in digital gold, it also identifies several barriers that are preventing more widespread adoption:
Uncertainty About the Investment Process & Benefits
67 per cent of non-users cited uncertainty about the investment process and the benefits of digital gold as the primary reason for not investing. This indicates a need for greater financial literacy and clearer communication about how digital gold works and its potential advantages.
Preference For The 'Touch & Feel' Of Physical Gold
44 per cent of non-users prefer physical gold because they value the ability to "touch and feel" their purchase. This attachment to the tangible aspect of gold remains a significant hurdle for digital gold adoption.
37 per cent of non-users pointed to other concerns, such as lower returns compared to stocks, fear of online fraud, and the impact of GST on both digital and physical gold purchases. These factors contribute to hesitation among potential investors.
Addressing Consumer Concerns to Drive Adoption
The findings from the Navi survey suggest that while digital gold is gaining traction, there is still work to be done to overcome consumer hesitations. Increasing financial literacy and addressing common concerns—such as the investment process, security, and potential returns—could help drive wider adoption. By doing so, more consumers could enjoy the benefits of investing in gold in a modern, innovative format that aligns with today's digital lifestyle.
Navi is one of India's fastest-growing financial services companies, offering a range of products including personal and home loans, UPI, insurance, mutual funds, and digital gold. With a mission to provide simple, accessible, and affordable digital-first financial products, Navi leverages its in-house AI/ML capabilities, technology, and product expertise to create exceptional customer experiences. Co-founded by Sachin Bansal and Ankit Agarwal, Navi is headquartered in Bangalore and continues to innovate in the financial services sector.
