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'Down about 6 pc': Zerodha CEO Nithin Kamath cautions against investing in digital gold thumbnail

‘Down about 6 pc’: Zerodha CEO Nithin Kamath cautions against investing in digital gold

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Nithin Kamath’s warning comes days after the market regulator Sebi issued an advisory cautioning investors to avoid unregulated products like digital gold.

general 'Down about 6 pc': Zerodha CEO Nithin Kamath cautions against investing in digital gold

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Nithin Kamath, Zerodha co-founder and CEO, has issued a warning to investors buying digital gold as it is unregulated. The 46-year-old said investors lose nearly 6 per cent the moment they purchase digital gold due to 3 per cent of GST and another 2-3 per cent for other things, including taxes and platform fees. Kamath’s warning comes days after the market regulator Sebi issued an advisory cautioning investors to avoid unregulated products like digital gold.

General Nithin Kamath on digital gold

In a post on X, Kamath wrote, “Digital gold is unregulated. A timely reminder from SEBI. Most people don’t realise that nobody regulates digital gold, and if something were to happen to the platforms or companies selling it, there’s not much you can do.”

He added that buying digital gold is an expensive way to get exposure to gold. “You pay 3% GST right away. Then there are spreads of another 2–3%, which means as soon as you buy, you’re already down about 6%, and that’s before even factoring in regulatory risk,” Kamath added, referring to taxes and platform fees.

General Nithin Kamath suggests safer, regulated alternatives

Kamath suggested that for gold exposure, investors should consider safer, regulated alternatives. “Now that Sovereign Gold Bonds (SGBs) have stopped, gold ETFs remain one of the safest and easiest ways to get exposure to gold,” he added.

Digital gold is unregulated. A timely reminder from SEBI.

Most people don’t realize that nobody regulates digital gold, and if something were to happen to the platforms or companies selling it, there’s not much you can do.

It’s also a subpar way to get exposure to gold. You pay… pic.twitter.com/ETexXWD0oV

— Nithin Kamath (@Nithin0dha) November 12, 2025

General Sebi’s warning against investing in digital gold

On November 8, the Markets regulator warned investors against investing in digital or e-gold products, saying such instruments fall outside its regulatory framework and involve significant risks. The cautionary statement came after Sebi observed that some online platforms have been promoting ‘digital gold’ or ‘e-gold’ products as an easy alternative to investing in physical gold.

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