What digital gold means
"Digital gold" is a name for buying gold through an app or website instead of from a jeweller's counter. You pay money and the app shows a gold balance, usually in grams or tola. A gold savings app usually lets you buy small amounts regularly.
The phrase covers products that are legally very different:
| Product type | What you actually own | Can you take metal home? |
|---|---|---|
| Allocated digital gold | Specific bars held in a vault in your name | Usually, under the provider's terms |
| Unallocated digital gold | A claim on a pool of gold held by the provider | Sometimes, under conditions |
| Gold fund or ETF units | Units of a fund that holds gold | No, you sell the units |
| Gold CFD or futures | A contract on the price, no metal | No |
Before you use any app, find out which of these it sells. The screen can look the same in every case. For more on the difference between metal and contracts, see Physical vs Paper Gold.
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How a gold savings app works
The general flow is similar across apps:
- You open an account and complete identity checks.
- You pay in rupees through a bank or wallet channel the app supports.
- The app quotes a buy price and a sell price. The gap between them is the spread, which is part of your cost.
- Your balance is shown in grams or tola. To convert units, see Ounce, Tola and Gram.
- To exit, you sell back to the provider for rupees or ask for physical delivery, if offered.
The price you see comes from the provider, not from a public exchange. Compare it with an independent reference before each trade. We do not show a live gold price on this page. To work out the value of a holding, use our Calculators with a price you enter yourself. How Gold Price Is Set explains where reference prices come from.
Custody: who holds the gold
Custody means who physically keeps the metal and on what legal terms. Ask the provider:
- Where the gold is stored, and which vault company holds it.
- Whether holdings are allocated to you or pooled.
- Whether an independent party audits the vault, and whether you can read the audit report.
- Whether the gold is insured, and against which risks.
- What happens if the app company closes. The key question is whether your gold is kept separate from the company's own assets.
If the provider cannot answer these questions in writing, you are relying on its promise alone. For self-storage options, see Storing Gold Safely.
Redemption: getting physical gold
Redemption means swapping your digital balance for real bars or coins. Check these terms before you buy, not when you want to redeem:
- the smallest amount you can redeem
- the forms available (bar, coin, jewellery) and their purity (see Gold Karats and Purity)
- making, minting and delivery charges
- where and how delivery or collection happens
- whether you can test the purity yourself (see Check Gold Purity)
Converting to jewellery usually costs more than converting to bars. Bars, Coins, Jewellery explains why.
Costs to compare
- Spread between the app's buy and sell price
- Storage or account fees, sometimes taken as grams from your balance
- Payment and withdrawal charges
- Redemption and delivery charges
- Tax treatment on gains (see Payments, tax, Islamic banking)
Regulation questions in Pakistan
Find out who supervises the app. In Pakistan, the regulator for securities and futures is the Securities and Exchange Commission of Pakistan (SECP), with trading in listed securities and commodities only via SECP-licensed securities and futures brokers. A gold balance held with a vault company and a gold contract traded on price are treated differently, so ask the provider which licence covers its product.
If an app offers gold futures or similar contracts, note that under the Futures Market Act 2016, s.47(1), no one may carry on a regulated activity (futures broker, adviser, representative) without an SECP licence. As a check, per the SECP, lists of licensed brokers are on the PSX and PMEX websites.
Many "gold apps" promoted on social media are offshore CFD platforms, not gold sellers. Pakistani regulators have said:
- On platform approval: per the SECP, offshore forex/CFD platforms operate without regulatory approval in Pakistan.
- On investor protection: per the SECP, offshore platforms have no Pakistani licence or oversight and offer no legal protection or recourse.
- On payments: per the SBP, remitting foreign exchange to overseas forex/margin/CFD platforms is not allowed through any payment channel (FERA s.5(1)).
The SECP also issues named warnings: SECP warnings by press release naming platforms (Quotex 09.04.2025; IBKR look-alikes, IGIL Securities, BMA Capital No.108 etc. 22.05.2025; Hillhouse Capital, S-169 Wharton 13.01.2026), none of which names Exness. Read the full picture on Law and regulators and Regulation and Safety.
Leveraged gold CFDs are not digital gold. With leverage, you can lose money fast, sometimes more quickly than with any physical holding. If you are looking at XAUUSD charts rather than metal, read Metals and Risk management first.
Islamic finance raises its own questions, such as whether gold changes hands at the time of the trade. See Islamic finance.
A short checklist
- Is the product metal, a fund or a contract?
- Who is the custodian, and is the gold allocated?
- Is there an independent audit you can read?
- Who licenses the provider in Pakistan?
- What are the full costs to buy, hold, sell and redeem?
- Is the price quoted close to an independent reference?
For wider context, see Gold in Pakistan and Gold as Investment.
Frequent questions
Is digital gold the same as owning physical gold?
Only if the gold is allocated to you, stored by a named custodian and redeemable. Otherwise, you hold a claim on the provider.
Can I buy gold online in Pakistan safely?
It depends on the provider. Check custody, audit, licensing and redemption terms in writing before you pay.
Does this page show the live gold price?
No. Use the Calculators with a price you enter, and compare it with an independent reference.
Is a gold CFD app a gold savings app?
No. A CFD tracks the price only, with no metal behind your position. Leverage can cause fast losses.
Who regulates digital gold apps?
It depends on the product. Ask the provider which licence covers it, and check the regulator's own lists and warnings.