Gold goes digital to attract younger investors and unlock $700 billion in demand, but key hurdles remain

A new survey by the World Gold Council (WGC) and Boston Consulting Group suggests that the global digital gold market could unlock up to $700 billion in potential demand, creating an opportunity to attract younger investors, including across Africa.

• The global digital gold market could unlock up to $700 billion in potential demand, especially appealing to younger investors.
• Currently valued at $45-55 billion, the digital gold market is much smaller than the $13 trillion physical gold market but could generate an extra $95 billion by 2031.
• Trust is a significant barrier, with 80% of survey respondents requiring trust in a provider before investing in digital gold.
• Digital gold adoption is higher in countries where it's accessible through familiar platforms like banking apps, showing up to seven times greater ownership.

The digital gold market is currently worth an estimated $45 billion to $55 billion. Although this is small compared with the $13 trillion physical gold investment market, the report estimates that digital gold could generate an additional $95 billion in gold demand by 2031.

Digital gold attracts younger investors but Trust is a major barrier

The survey of 12,000 retail investors found that nearly nine in 10 would consider investing in digital gold under the right conditions.

Awareness reaches 50% among people aged 25 to 34, compared with 23% among those over 55. Notably, people who have never owned gold account for 65% of potential demand.

However, trust remains a major barrier to investing in digital gold. Four in five respondents said they need to trust a provider before investing.

According to the World Gold Council, “Trust is the swing factor.” Investors want stronger consumer protections, clear proof that their gold is backed by physical assets, easy ways to redeem their holdings and clearer regulations to build confidence in digital gold.

Accessibility also matters. The World Gold Council found that in countries such as China, India and Indonesia, where digital gold is available through familiar services such as banking apps and payment platforms, the share of investors who own digital gold is up to seven times higher than in less developed markets.

As reported by Mining MX "South Africa reflects the gap between interest and action. Only 14.3% of respondents own gold, against 23.7% across all markets, and just 4.1% hold digital gold. Almost 50% say they are definitely or very likely to invest, well above the global 33.6%."

These findings point to potential for digital gold to attract more investors, particularly younger people, although growth will depend on trusted providers, affordable access and clear investment protections.