Daijiworld Media Network - New Delhi
New Delhi, Oct 21: Digital gold could unlock up to $700 billion in latent demand from a market currently valued at $45–55 billion, according to a report released by Boston Consulting Group (BCG) and the World Gold Council on Wednesday.
The report projected that the digital gold market would grow to $160–170 billion by 2031, expanding at an annual rate of around 27 per cent under a five-year base-case scenario.
The market could rise further to $270–280 billion if barriers to adoption are removed more quickly. However, the report clarified that the estimated growth opportunity represents potential demand if existing obstacles are addressed and should not be viewed as a near-term forecast.
“Trust remains the biggest barrier to adoption, with stronger consumer protection, transparent proof of backing, accessible redemption and clearer regulation identified as key factors in building investor confidence,” the report said.
Digital gold could also expand the overall gold market, with around 65 per cent of latent demand expected to come from consumers who do not currently own gold. Under the base-case scenario, the market could generate nearly $95 billion in genuinely new gold demand by 2031, the report noted.
Tokenised gold is also gaining momentum, with its value increasing fivefold since late 2024 to around $6 billion. Cumulative spot trading volumes exceeded $90 billion in the first quarter of 2026.
Younger investors are emerging as a key driver of awareness. Around 50 per cent of investors aged 25–34 are aware of digital gold, compared with 23 per cent among those aged 55 and above.
“India is among the world's most advanced digital gold markets. Awareness stands at 71 per cent of investors, among the highest of the 12 markets we surveyed, and access through payment platforms, super-apps and banking apps has made digital gold part of everyday financial life,” said Vipin V, Managing Director and Partner at BCG.
More than 120 million Indians have transacted in digital gold, with monthly transactions crossing 200 million in early 2026, Vipin said.
He added that younger investors would drive the next phase of growth and that India was well positioned to lead the expansion, with more than half of its new investors below the age of 30.
Vipin also emphasised that regulatory-style protection was the single biggest factor that could encourage wider adoption of digital gold.