BULLION BOOST: Gold, an ancient store of wealth, is finally gaining digital traction
The digital gold market itself is unlikely to move the overall demand dial much but is seen as an entry point into the wider bullion market, especially for younger investors who are obviously more wired than their older counterparts.
Gold, a time-honored store of wealth, is increasingly finding a place in the digital realm. The digital gold market, currently valued at approximately $50-billion, is poised for significant growth and may expand to a market worth $700-billion by 2030. This is according to a recent report by the World Gold Council (WGC) and Boston Consulting Group. Digital gold offers investors exposure to the precious metal through digital platforms, bypassing the complexities and issues tied to handling physical gold.
As BRICS nations strive to reduce their reliance on the dollar, a gold-backed digital currency could serve as a cornerstone of a new financial system. Tokenized investment products, such as Unit and the Standard Gold Unit, are gaining traction. The WGC highlights that momentum is building within financial markets as they undergo a digital transformation, making tokenized investment products more mainstream.
The digital gold market has seen a fivefold increase in value since late 2024, reaching around $6-billion. In the first quarter of 2026, cumulative spot trading volumes in tokenized gold surpassed $90-billion, outpacing the entire trading volume of 2025. While currently a small fraction of the overall gold market, valued at about $30-trillion, digital gold could grow to $165-billion within five years and potentially reach $275-billion if certain obstacles are addressed.
The main barriers to widespread adoption are trust, accessibility, utility, and cost. Trust stands out as the decisive factor, with investors seeking stronger consumer protections, transparent proof of backing, convenient redemption, and clearer regulations to boost confidence in digital gold.
Access to digital gold is currently limited outside of major Asian markets, such as India, China, and Indonesia, where it is integrated into super-apps, payment platforms, and banking apps. This contrasts with markets where such distribution is still nascent. The untapped potential for a $700-billion market lies in the "latent demand" – a pool of investors who have yet to invest in gold but would prefer doing so in a digital format.
Remarkably, 52% of digital gold investors held no gold before their first digital purchase, and 92% have since invested in other forms of gold. This indicates that digital gold may attract new investors and capital, rather than cannibalizing demand for traditional gold investments.
Written by urgent.news from Daily Maverick's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
