Digital gold is unregulated. A timely reminder from SEBI.

Most people don’t realize that nobody regulates digital gold, and if something were to happen to the platforms or companies selling it, there’s not much you can do.

It’s also a subpar way to get exposure to gold. You pay 3% GST the moment you buy. Then there are spreads of another 2–3%, which means as soon as you purchase digital gold, you’re already down about 6%, and that’s before even factoring in regulatory risk.

Now that Sovereign Gold Bonds (SGBs) have stopped, gold ETFs remain one of the safest and easiest ways to get exposure to gold. We wrote about all this on The Daily Brief.

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