Digital Gold Volumes Soar to 940M YTD; November Value Plunges Post-SEBI Advisory

• Digital gold volumes reached 940.56 million YTD, with 123.42 million traded in November.
• Despite rising volumes, the traded value of digital gold declined by 46.9% month-on-month in November, from Rs 2,290.36 crore to Rs 1,215.36 crore.
• The decline in value followed a SEBI advisory on November 8th, stating digital gold products are outside its regulatory purview, causing investor hesitation.
• Experts note that unregulated platforms, varying pricing, and lack of oversight on physical gold backing contribute to value concerns, despite high gold prices driving volumes.
• Investors are shifting to regulated options like Gold ETFs, which continue to attract significant inflows, while industry bodies work on self-regulatory frameworks for digital gold.

Why It Matters: SEBI's advisory on digital gold's unregulated status led to a sharp 46.9% value drop in November despite high volumes.