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Indian investors are increasingly buying gold through digital platforms as rising prices put pressure on traditional jewellery and coin purchases. The change comes as households prepare for Dhanteras, a festival closely associated with gold buying.
Gold ETFs and digital gold purchases have grown this year, even as overall demand has weakened. Meanwhile, India's cryptocurrency market continues to attract activity despite a slowdown in transaction volumes. The figures show growing use of digital investment platforms, although they do not establish a direct shift from gold to crypto.
According to the World Gold Council, India's gold demand fell 29% from a year earlier to 162.5 tonnes during the July–September quarter. Despite the decline in volume, the value of purchases increased 3% to INR 2,419 billion.
The difference came as gold became more expensive. Domestic prices averaged INR 148,891 per 10 grams during the quarter, up 45% from the same period in 2025. As a result, buyers spent more money despite purchasing smaller quantities.
Jewellery demand declined 20% to approximately 100 tonnes. Purchases of gold bars and coins also fell 40% to 55 tonnes as higher prices affected demand for physical gold.
The World Gold Council also cited the timing of festivals as a factor. Some occasions that supported purchases during the third quarter of 2025 fall in the final quarter of 2026.
While physical gold demand weakened, other forms of gold investment attracted buyers. Gold ETFs recorded inflows equivalent to 28.8 tonnes during the first nine months of 2026, an increase of 47% from a year earlier.
Gross digital gold purchases also rose 76% to 16.3 tonnes, compared with 9.2 tonnes during the same period in 2025. These platforms allow customers to purchase small amounts without taking physical delivery.
However, the growth was not consistent across all products. Gold ETF demand fell to 5.3 tonnes during the third quarter, compared with 10.7 tonnes a year earlier. Digital gold purchases increased to 4.9 tonnes from 3.4 tonnes.
Investors also face different rules depending on how they buy gold. In November 2025, the Securities and Exchange Board of India warned that digital gold products operate outside its regulatory framework.
Unlike regulated gold ETFs, these products do not receive the same investor protections under securities regulations.
India's cryptocurrency market has also seen changes in transaction activity. Chainalysis estimated that the country received approximately USD 338 billion in on-chain crypto value during the 12 months ending June 2025.
That figure measured transactions moving through blockchain networks, rather than fresh investments. Transfers between exchanges and wallets can contribute to the total more than once.
Newer Chainalysis data covering July 2025 through June 2026 placed India's crypto activity at approximately USD 135 billion, with centralized exchanges receiving USD 88.4 billion in inflows.
The report also recorded a 14.7% contraction in activity under its updated measurement approach. India ranked sixth in the 2026 Global Crypto Adoption Index after holding first place in 2025.
However, the two annual transaction totals use different measurements and cannot be compared directly.
Although gold and cryptocurrency both attract Indian investors, the available figures do not show households moving money from one asset into the other. They instead document changes in demand and activity across different investment products.
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