How buying gold on an app is pushing real gold prices higher
Published by India Today
Abhishek Kumar's role: Quoted
Abhishek Kumar said investment flows through digital channels have become a main driver of recent price moves. He explained how physically backed products absorb metal from the market, and suggested checking that a fund is physically backed and audited.
What Abhishek Kumar said
What has kept the gold and silver rally going?
Over the past year the rally has been sustained by global investment inflows. Interest began mainly as safe-haven buying, but the sharp growth of digital platforms and of ETF assets has strongly added to the upward momentum. For silver, industrial demand provides a critical floor, but the fast flow of retail and institutional money through liquid digital channels has become a primary driver.
How does buying gold on an app affect the price of physical gold?
Most regulated ETFs in gold and silver hold the physical metal behind their units. For every new unit issued, the fund manager has to buy actual metal and store it in a secure vault. So your digital purchase is directly linked to global physical supply: it takes metal out of what is freely available in the market, and that supports higher prices, even though you bought it on your phone.
Has digital investing changed how gold and silver prices move?
Yes. Electronic markets have made access easy and demand has risen sharply, but they have also made prices more volatile within the day, with sharper swings. At the same time, digital gold and systematic investing are becoming popular with younger retail investors, and I see that building a more consistent and structural base of demand for the metals over time.
What should I check before buying a gold or silver fund?
I suggest reading the fund's offer document to confirm that it is backed by physical metal and is not a synthetic product. I would also look for audits by an independent party, a recognised custodian, and openness about where the metal is vaulted and how it is inspected. These checks help make sure the digital units you hold are fully backed by physical bullion.
In our words, from what he said in the piece. General information, not personal advice.
More of Abhishek's views on money management
The article explains how investing in gold and silver via apps, ETFs and other digital platforms adds to demand for physical metal. It notes that most regulated ETFs hold real bullion, so new units require metal to be bought and stored. It also covers higher intraday volatility and steadier buying by younger investors.
Publisher source
How buying gold on an app is pushing real gold prices higher