(MENAFN- Khaleej Times)

Not everyone in the UAE can afford to buy gold bars or big jewellery pieces as prices hit record highs - but that hasn't slowed demand. A digital gold rush is taking shape as residents increasingly buy tiny amounts online, often starting from just 0.1 grams and spending around Dh500 per purchase to steadily build their holdings through apps.

More first-time and younger investors are treating gold like a savings plan - topping up in small, regular amounts instead of waiting to accumulate large sums, analysts say.

Recommended For You 7-year-old Dubai boy sets record trekking Everest Base Camp, Annapurna Circuit

Experts say the trend reflects a clear shift in behaviour: instead of saving for large purchases, more first-time buyers are accumulating gold steadily through micro-investments and app-based platforms, turning the precious metal into a low-commitment savings habit.

Stay up to date with the latest news. Follow KT on WhatsApp Channels.

Bite-sized gold

Botim, AstraTech's fintech platform, has seen users purchase more than Dh22 million worth of gold since it rolled out fractional precious-metal ownership app O Gold on the platform in August this year.

Rishabh Singh, VP Product at AstraTech, told Khaleej Times that more than 775,000 users have explored the gold investment feature, completing over 45,000 transactions. Calling it a“clear sign of growing interest in digital gold as a secure and accessible investment option”, he said the adoption of botim money's digital gold has been strong, particularly among first-time gold buyers.

“By allowing investments from as little as 0.1 grams, we have made it possible for people who previously needed to save for months to start investing immediately.

“On botim, the average ticket size is around Dh700, with nearly 64 per cent of users purchasing gold worth less than Dh500, showing a clear preference for accessible, bite-sized investments,” Singh said.

Digital shift

Gold has long been a savings and wealth-protection tool in the region. But analysts say its role is evolving as digital rails make it easier to accumulate grams over time.

“With gold prices touching record highs, the argument for digital forms of gold... is becoming more popular,” said Arun Leslie John, Chief Market Analyst at Century Financial.“The entry point to have exposure to the precious yellow metal has come down dramatically.”

He noted that physical gold remains culturally meaningful, but digital entry points are now more practical for many.

“Although physical gold still remains the only tangible option that provides an unmatched sense of asset possession...for retail investors, physical gold buying mainly occurs for cultural or traditional purposes, with a declining view of it being purely an investment vehicle.

“Digital gold is providing a blend between a gold ETF and physical bullion, combining the ease of technology and removing the risk and cost of personal storage.”

Everyday savings tool

Digital gold still sits alongside - not in place of - bullion and ETFs. But experts expect its role to expand as younger, app-driven investors build positions gradually.

“Digital gold has full potential to complement traditional forms of gold investments... in the long-run, it won't be far-fetched to see significant flows in this category, leading it to stand head-to-head as an investment option alongside gold ETFs and physical bullion,” said John.

For now, the trend is simple: lower the barrier, build the habit.

Platforms are also adding new features that mirror modern savings tools.“Users can also access a gold-earning program benchmarked to international lease rates, targeted at approximately 3 per cent per annum in gold grams and is sharia-compliant,” Singh said.

And the offering is expanding:“We will soon introduce silver investments, along with the ability to convert digital gold into physical coins or bars delivered directly to users' homes.”

“We are enabling users to do more with their money within the same ecosystem by investing,” Singh said.

The World Gold Council (WGC) notes in its New Golden Age report that digitalisation could reshape the metal from a static store of value into a highly mobile asset. Its Gold247 roadmap and proposed Standard Gold Unit (SGU) aim to standardise fractional ownership, transparency of custody, interoperability and settlement across platforms.

Volatility fuels demand

Gold's defensive appeal has strengthened amid market uncertainty - but volatile swings have also heightened the appeal of digital rails.

“Higher gold price volatility is a two-sided effect for digital gold, both amplifying its allure as well as its risk,” said John, pointing to spikes above 30 per cent earlier in the year.“Digital gold platforms take advantage of such spikes with 24/7 liquidity and fractional ownership.”

He noted analysts have raised gold allocations to 15–20 per cent in portfolios during periods of uncertainty, while cautioning against emotional trading and platform risk during high-volume periods.

Where once gold ownership required saving up for a bracelet or a bar, many UAE residents are now stacking grams slowly - and quietly - through their phones. As infrastructure matures and regulation strengthens, digital gold is moving from a niche experiment to a mainstream savings tool for a new investing generation.

MENAFN05112025000049011007ID1110302590