Buying gold used to mean a jeweller, a locker, and hoping nothing happens to it while it sits at home. Digital gold changes that equation, you own the same metal, but it's held on your behalf and tracked digitally, so you can buy it in small amounts and access it from your phone. Here's exactly what that means, and how it works with RamMudra™, IGM's digital gold platform.
What is digital gold?
Digital gold is a way to own gold digitally with the convenience of your smartphone while the gold is held in a bank-grade secure vault for you. You can buy gold in small quantities, hold it digitally, sell it when you choose, or redeem it for physical gold coins delivered to your doorstep, subject to the applicable terms.
With RamMudra™, your digital gold is backed by physical gold held securely with a custodian, while your ownership is recorded digitally using blockchain technology. You can manage your holdings anytime through the RamMudra™ app.
How does digital gold work?
When you buy digital gold, your holding is recorded as a specific quantity of gold in grams, backed by an equivalent amount of physical gold securely stored in a vault and allocated to you.
With RamMudra™, securely stored gold is tokenised on a blockchain, creating transparent, tamper-evident records of ownership and transactions. Your gold ownership is recorded on the blockchain and can be independently verified.
Is digital gold real gold?
Yes. Digital gold represents ownership of real physical gold. With RamMudra™, your digital gold is backed by an equivalent quantity of physical gold securely stored in a vault with a custodian. You own the gold digitally, without needing to physically store it yourself.
Is RamMudra™ digital gold 24K?
Yes. RamMudra™ offers 24K gold with 999.9 fineness (99.99% purity), backed by physical gold.
How much gold do I own when I buy digital gold?
The amount of gold you own depends on the amount you invest and the prevailing gold price at the time of purchase. Your ownership is recorded as a specific quantity of 24K gold in grams, which you can view anytime in the RamMudra™ app. RamMudra™ supports fractional ownership starting from Rs. 10. You can own and accumulate gold in smaller quantities rather than having to buy an entire coin or bar.
How is digital gold different from physical gold?
The biggest difference is how you own and store your gold.
With physical gold, you take possession and are responsible for storing and securing it. With digital gold, your ownership is recorded digitally while the physical gold backing your holding is securely stored with a custodian. You can buy in fractional quantities, manage your holding on the RamMudra™ app, and redeem eligible holdings for cash or physical gold when you want it.
Is digital gold an investment product?
Digital gold allows you to own gold digitally and is a convenient way to buy, hold and sell gold through the RamMudra™ app. The value of your holding changes with the market price of gold. Digital gold does not offer guaranteed returns.
Can the value of digital gold go down?
Yes. Gold prices can rise or fall based on market conditions, so the value of your digital gold holding can also increase or decrease.
The takeaway
Digital gold is gold ownership without the vault at home, the same 24K metal, held by a custodian on your behalf, tracked in grams, and accessible whenever you want to buy more, sell, or convert it to physical coins. It's not a guaranteed-return investment, but for many people it solves the two biggest practical problems with owning gold: where to store it, and how to buy it in amounts that actually fit a budget.
