The digital gold market, currently valued between $45 billion and $55 billion, is poised to attract younger investors and unlock an additional $95 billion in demand by 2031. This potential growth is highlighted in a recent survey of 12,000 retail investors, which found that nearly nine in 10 would consider investing in digital gold under the right conditions.
Awareness of digital gold is significantly higher among younger demographics, with 50% awareness among those aged 25 to 34, compared to just 23% among those over 55. Notably, 65% of potential demand comes from individuals who have never owned gold before. However, trust remains a major barrier, as four in five respondents emphasized the need to trust a provider before investing.
The World Gold Council underscores that 'Trust is the swing factor.' Investors are seeking stronger consumer protections, clear proof of physical asset backing, easy redemption options, and clearer regulations to build confidence in digital gold. Accessibility also plays a crucial role, with countries like China, India, and Indonesia seeing up to seven times higher ownership of digital gold due to its availability through familiar services such as banking apps and payment platforms.
In South Africa, the gap between interest and action is evident. Only 14.3% of respondents own gold, compared to 23.7% across all markets, and just 4.1% hold digital gold. Despite this, nearly 50% of South Africans express a strong likelihood to invest, well above the global average of 33.6%. These findings suggest that digital gold has the potential to attract more investors, particularly younger individuals, provided there are trusted providers, affordable access, and clear investment protections.