Digital gold could triple by 2031, WGC estimates
The gold industry’s opportunity is reaching buyers beyond its existing bullion and exchange-traded fund customers.
A joint report by the World Gold Council and Boston Consulting Group estimates that digital gold could surge to $160 billion to $170 billion by 2031, tripling its current value of $45 billion to $55 billion. Providers must win investors' trust to achieve this potential, as revealed in the report. Nearly nine in ten surveyed retail investors across 12 countries would consider digital gold under the right circumstances, but current ownership of digital gold is less than 1% of physical investment gold.
Four in five investors prioritize trust in the provider before investing. Clearer regulation, proof of physical metal backing, and accessible redemption routes are crucial for attracting buyers. Lower minimums and more delivery locations could enhance the protection offered to retail buyers. Adoption is seven times higher in markets where digital gold is available through familiar banking, payment, and multipurpose apps.
Younger investors, aged 25-34, are more aware of digital gold, with half knowing about it, compared to 23% of those aged 55 and older. The $95 billion figure in the study does not include money shifted from other gold products. The $700 billion opportunity cited, "Digital Gold: Unlocking a $700-billion opportunity," represents estimated additional demand if all barriers to adoption vanished immediately.
Major security breaches are the most concerning factor, with 44% of respondents viewing such an event as the main deterrent to confidence.
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