Digital Gold Could Unlock Up To $700 Billion In Latent Demand
The report from Boston Consulting Group and the World Gold Council said the digital gold market is projected to reach $160–170 billion by 2031, growing at roughly 27 per cent annually, under a five‐year base case.
The digital gold market could rise to $270–280 billion if adoption barriers are removed more quickly. Further, the report noted that the digital gold market growth opportunity represents potential demand if existing barriers are addressed, rather than 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 noted.
Digital gold could expand the overall gold market, with around 65 per cent of latent demand coming from consumers who do not currently own gold. The base case estimates nearly $95 billion in genuinely new gold demand by 2031, it said.
Tokenised gold is gaining momentum, with its value increasing fivefold since late 2024 to around $6 billion. Cumulative spot trading volumes exceeded $90 billion in Q1 2026.
Younger investors are driving awareness, with 50 per cent of investors aged 25–34 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, BCG.
More than 120 million Indians have transacted in digital gold, with monthly transactions crossing 200 million in early 2026, Vipin said.
The next wave of growth will be driven by younger investors, and India is well placed to lead it, with over half of its new investors under the age of 30, he said, adding that regulatory-like protection is the single biggest lever for adoption.
-IANS
aar/pk
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