KOCHI: Is the digital revolution picking up in the e-gold sector? There are reasons to believe so. Indians currently hold more than 24,000 tonnes of gold worth $900 billion as per World Gold Council estimates. Even though the affinity of Indians is towards physical gold, the interest towards e-gold is also increasing. The latest example is selling of digital gold via Paytm. The mobile payment and e-commerce platform has sold 30 kg of gold in just a few days. Experts are of the opinion that e-gold and gold ETFs will make huge inroads into the Indian psyche.
“Paytm’s Digital Gold eliminates all hassles and doubts related to purchase of gold, enabling Indians to buy, store and sell pure gold instantly. We aim to democratise access of gold by making it more affordable and available,” said Krishna Hegde, senior vice-president, Paytm.
Indian households bought more gold in 2016 than any other financial asset despite the challenges of buying pure gold and storing it.
Demand for gold from Indian consumers rose 15 per cent year-on-year to 124 tonnes in the first quarter of 2017 following continued remonetisation by the central bank that buoyed consumer sentiment, according to World Gold Council. Globally, inflows into gold ETFs totalled 109 tonnes during the January-March period.
“Indians stiff prefer buying physical gold by a huge majority. However, investment in e-gold is also picking up especially after the digital drive by the government. Hope this trend will continue in the future as well,” said Harish V, research head, Geofin Comtrade.
Regarding the price trend of gold, Prathamesh Mallya, chief analyst at Angel Commodities, said that global uncertainties had created volatility in gold and silver prices in the past month.
“The next uncertain thing, however, remains the outcome of the second round of French elections, result of which are due on May 7. Besides, there is no risk or uncertainty coming out from any part of the globe, giving us a sense that the precious metals counter will be dumped in the months ahead,” he said.