Mumbai, 16th October 2024—One of India’s leading financial services platforms, Moneyview has released the results of its latest survey on gold investments highlighting increasing consumer preference towards digital gold platforms as a prudent and a more convenient option to a traditional physical gold buy.
Gold has been a cornerstone of savings and investment for Indians. However, traditional gold investments often involve finding a reputable dealer and safe storage options along with ensuring the authenticity of the gold. Digital gold, on the other hand, allows fractional ownership of gold while making it accessible to a wider range of customers. With low entry ticket size, digital gold reduces the financial burden associated with traditional gold investments, making it a more attractive savings option for many.
The research survey indicated that over 85% of the 3000 respondents consider gold to be a valuable asset for wealth preservation, with its intrinsic value and historical performance continuing to drive consumer confidence. Moneyview also found that investors, particularly in the age group of 25-40 years, invest in gold via both the physical and digital way, as part of their regular financial strategy to build wealth for retirement and other long-term goals. A notable 70% of respondents reported that their perception of gold as a safe asset positively influences their savings habits. However, in today’s digital-first economy, the appeal for gold is increasingly driving investors towards digital platforms that offer easier access to gold.
The survey shows that over 75% of respondents under the age of 35 prefer digital gold to physical gold, citing its liquidity and convenience as major factors. The survey conducted using various parameters such as location, age, and income shows that the high-income group still prefers physical gold in larger quantities with digital gold having found its way mainly among middle-income groups who appreciate the flexibility of buying smaller units, starting as low as ₹10 on digital platforms.
Meanwhile, within the location parameter, urban consumers, who often have higher digital literacy and internet access lead in adopting digital gold. The rural consumers on the other hand, who have been traditionally preferring physical gold purchases are gradually becoming aware of the benefits of digital gold, particularly through mobile apps and fintech platforms such as Moneyview.
Commenting on the survey findings, Sushma Abburi, Chief Business Officer at Moneyview, said, “Digital gold is revolutionizing the way people invest in this timeless asset. The ease of access, lower entry barriers, and enhanced security make digital gold a highly convenient and valuable option for today’s investors. As fintech platforms continue to offer innovative solutions, we believe digital gold will play a pivotal role in shaping the future of gold investments, empowering individuals across demographics to diversify and secure their financial futures.”
Assured purity, insured storage, affordable investment due to availability of SIP options, and safety among others are some of the key drivers for digital gold investments across India. Digital gold allows investors to purchase gold in real-time without the need for physical storage or transportation. Unlike physical gold, where upfront costs can be high, digital gold allows consumers to start investing with minimal amounts, making it accessible to a wider range of income groups. Moreover, the precious metal is backed by 24k gold stored in insured vaults, ensuring that consumers do not have to worry about the purity or security of their investment. Alongside, digital gold can be easily converted to cash or physical gold through trusted platforms, giving investors the flexibility to trade without incurring heavy transaction costs or delays.
More than half of the respondents believe that the ability to purchase gold in fractional amounts through digital platforms is one of the most lucrative features driving them towards changing their investment habits. Nearly 65% of millennials surveyed expressed a preference for digital gold due to its ease of access and convenience.
Moneyview’s survey firmly establishes that while physical gold remains popular among certain demographics, the growing adoption of digital gold cannot be ignored. With digital gold rapidly gaining traction across all income and age groups, its accessibility, flexibility, and security make it an increasingly attractive option for both new as well as seasoned investors.
