The World Gold Council and Boston Consulting Group estimate that the global digital gold industry will expand significantly over the next five years. As reported by The Hindu BusinessLine, the authors project the sector’s value will rise from an estimated $45-55 billion to a range of $160-170 billion by 2031. This base-case forecast assumes an annual growth rate of roughly 27 per cent, provided that structural obstacles are effectively managed by market participants.
The study identifies provider reliability, distribution channels, pricing models, and product utility as the main factors limiting current adoption. The Hindu BusinessLine notes that the authors suggest eliminating these friction points could release up to $700 billion in long-term latent demand. This potential volume is described as a ceiling rather than a near-term prediction, representing a scale comparable to existing physically backed exchange-traded funds. Under a more optimistic outlook, the sector might reach $270-280 billion, whereas a pessimistic view suggests it could stagnate at $70-80 billion if current challenges persist.
Consumer behavior forms a central component of the analysis, which is based on feedback from over 12,000 retail investors in 12 different markets. The Hindu BusinessLine reports that nearly 90 per cent of surveyed individuals indicated they would consider allocating funds to digital assets if key hurdles were removed. Provider reliability emerged as the most significant determinant of adoption, with nearly four in five respondents prioritising it before investing. Additionally, 35 per cent of participants cited clearer regulatory frameworks and stronger consumer protections as factors that would increase their willingness to engage with the asset class.
Distribution through mainstream financial applications also plays a critical role in market penetration. The report found that regions offering digital gold via banking and payment interfaces saw usage rates up to seven times higher than areas lacking such integration. India is highlighted as a major hub, with over 120 million customers having transacted in digital gold. The Hindu BusinessLine adds that the World Gold Council expects this asset class to attract new participants rather than merely shifting capital from physical bars or existing funds, with approximately two-thirds of new demand coming from individuals who do not currently hold gold.