Panel Discussion: Digital Gold vs. Traditional Gold Investments – Is Regulatory Oversight Necessary for the Digital Era?
At GSMC 2.0, the panel explored how technology is reshaping ownership, access and perception of gold in India and globally.
Gold remains a stabiliser in portfolios, especially during crises. While its purpose as portfolio insurance has not changed, the methods of holding it have evolved. Digital platforms, ETFs and Bullion Depository Receipts are redefining how investors participate in the asset class.
In India and much of Asia, gold is traditionally viewed as a physical asset. In the West, it is treated as a financial asset within diversified portfolios. Today, a new generation of investors prefers digital access over physical holdings, with tokenisation and fractionalisation making gold more accessible.
Within the GIFT City ecosystem, the Bullion Exchange and Depository operate under regulation. BDRs function as securities, fully backed by physical gold stored in vaults. Fractionalised BDRs retain this physical backing, offering certainty, transparency and global investor access, including NRIs and overseas participants.
The discussion highlighted three promises of digital gold: accessibility, fungibility and authenticity. However, a key risk remains platform failure. When gold is securely held in regulated vaults or depositories, this risk is significantly mitigated.
Panelists underscored the need for a balanced regulatory environment that ensures customer protection while enabling innovation. Whether innovation precedes regulation or regulation fosters innovation, clarity and oversight are essential for ecosystem development.
As India seeks a greater role in global price discovery rather than remaining a price taker, regulated, physically backed and digitally delivered gold products could play a transformative role, including in unlocking value from physical gold held across rural households.
This is an invite only event and is being broadcasted live on the GSMC YouTube channel:
youtube.com/@GSMCIFSC
Watch the dynamic event live now -
youtube.com/watch?v=B1D3oCzW…
For more details, visit
gsmc-ifsc.in/
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