Digital gold could unlock as much as $700 billion in untapped demand over the long term, according to a new report by the World Gold Council and Boston Consulting Group. The estimate reflects potential rather than a near-term forecast, with the current market valued at just $45–55 billion—less than 1% of the $13 trillion global gold market.
The report defines digital gold as two categories: vaulted digital gold, which are digital claims on physical gold, and tokenised gold, blockchain-based tokens backed by physical reserves. Tokenised gold alone has grown fivefold since late 2024, reaching around $6 billion, while cumulative spot trading volumes in early 2026 already exceeded $90 billion—more than the total for all of 2025.
Nearly 90% of retail investors surveyed said they would consider digital gold under the right conditions, based on responses from over 12,000 investors and interviews with 20 industry experts. Trust is the decisive barrier. Nearly four in five investors prioritise trusting the provider, and they want proof that products are safe, legitimate, transparently backed and redeemable for physical gold.
Distribution plays a critical role. In markets like China, India, and Indonesia, where digital gold is integrated into super-apps, payment platforms, and banking apps, penetration rates are up to seven times higher than in regions lacking such access. The report highlights that 65% of latent demand comes from people who do not yet own gold, with 52% of current digital-gold investors having held no gold before their first purchase.
Younger investors are driving early growth. Awareness of digital gold reaches 50% among 25–34-year-olds, compared to just 23% for those aged 55 and older. This cohort is also twice as likely to invest if entry barriers are addressed, aligning with broader trends in blockchain-based financial products. Gold’s physical backing may give it an edge over purely digital assets, provided issuers can prove custody, redemption, and regulatory compliance.
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Projected growth hinges on trust and regulation
The report distinguishes between short-term growth and long-term potential. By 2031, the base-case projection is a market valued at $160–170 billion, growing at an annual rate of around 27%. A bull-case scenario pushes this to $270–280 billion, but only if regulatory clarity, pricing, and platform trust improve. The $700 billion figure represents theoretical demand if these barriers vanish entirely.
Cost remains a major hurdle. Digital gold must compete with physical bullion and gold ETFs on pricing, or investors will not adopt it. The second most common barrier is the lack of trust, without transparent, auditable proof that tokens are fully backed by physical gold, adoption will stall. Redemption into physical gold or cash must also be simple and legally robust.
How digital gold could attract new investors
Digital gold’s expansion could also act as an on-ramp for new investors. Among first-time digital-gold buyers, 92% subsequently purchased other forms of gold, suggesting the product may attract younger, digitally native investors who later diversify into traditional gold formats. The base case still implies $95 billion in genuinely new demand by 2031, even after accounting for displacement from existing gold products.
If the industry establishes trusted infrastructure and interoperable standards, the $700 billion latent-demand estimate becomes a plausible long-run ceiling. Without progress on transparency, regulation, and distribution, however, growth may follow a more modest path, reaching roughly $70–80 billion by 2031, driven primarily by wealth growth rather than unlocking untapped demand.
