Digital gold, ownership of physical bullion through digital tokens or online accounts with the metal held by a custodian, could bring 95 billion dollars of new money into bullion by 2031 if providers win investor trust, the World Gold Council and Boston Consulting Group estimate in a joint report released on Monday. The market could more than triple to 160 billion to 170 billion dollars by 2031 from 45 billion to 55 billion dollars today. The 700 billion dollar opportunity in the report’s title is the estimated additional demand if all barriers to adoption disappeared immediately, at today’s population and wealth.
The study draws on a survey of more than 12,000 retail investors in 12 countries and interviews with 20 industry experts, feeding a model covering 96 countries representing 98 percent of global investable wealth. It excludes gold backed exchange traded funds, leveraged products and gold backed stablecoins. Vaulted accounts are 89 percent of the digital market and tokens the rest. About 65 percent of untapped demand comes from people who have not invested in gold, and the 95 billion dollar figure excludes money shifted from other gold products.
Trust is the constraint. Nearly nine in ten respondents would consider digital gold under the right conditions, yet the category is under 1 percent of the physical investment gold market. Four in five investors prioritise trusting the provider, and clearer regulation, proof of physical backing and a workable route to claim the metal are central to adoption. Some products allow physical redemption at only one location worldwide or require holdings equivalent to a 400 ounce bar. Adoption is up to seven times higher where digital gold is offered through familiar banking and payment apps; awareness reached 76 percent in Indonesia and 71 percent in India against 19 percent in Canada, and half of investors aged 25 to 34 knew of digital gold against 23 percent of those 55 and older.
The range of outcomes is wide and the report is candid about it. The bear case puts the market at 70 billion to 80 billion dollars by 2031 if barriers persist, and a faster improvement case at 270 billion to 280 billion dollars. All scenarios hold the gold price steady and exclude major hacks, fraud or custody failures, which matters because 44 percent of respondents said a major security breach would most undermine their confidence. The Council also has an interest to declare: it plans Gold as a Service, shared infrastructure to help issuers arrange sourcing, custody, compliance and redemption. Existing providers, including the Royal Mint, say digital products act as a gateway into physical ownership rather than a substitute for it.