TL;DR
Get business pricing on office and shipping supplies
- Business-only prices and quantity discounts
- Tax-exempt purchasing
- Multiple users, one account, clear invoices
The World Gold Council and Boston Consulting Group estimate that digital gold could grow from $45 billion–$55 billion today to $160 billion–$170 billion by 2031. Their forecast depends on providers addressing trust, regulation, physical redemption and access; the report’s scenarios range from $70 billion–$80 billion to $270 billion–$280 billion.
The World Gold Council (WGC) and Boston Consulting Group (BCG) estimate that the digital gold market could grow to $160 billion–$170 billion by 2031, from an estimated $45 billion–$55 billion today. Their projection depends on providers winning investor trust and improving access to products backed by physical bullion.
The report, titled Digital Gold: Unlocking a $700-billion opportunity, says digital gold could bring $95 billion in new money into bullion by 2031. That estimate excludes funds shifted from other gold investments. The researchers also distinguish digital gold—physical metal held by a custodian and represented through tokens or online accounts—from gold-backed exchange-traded funds, leveraged products and gold-backed stablecoins, all of which were excluded from the market calculation.
Digital gold currently accounts for less than 1% of the physical investment gold market, even though nearly nine in 10 surveyed investors said they would consider it under the right conditions. Vaulted accounts make up 89% of the digital gold market, with tokens representing the remainder, according to the report.
The WGC and BCG based their analysis on a survey of more than 12,000 retail investors in 12 countries, including Canada, alongside interviews with 20 industry experts. They used the responses to inform a model spanning 96 countries, which the report says represent 98% of global investable wealth. These findings describe surveyed interest and modeled scenarios; they do not establish how much demand will ultimately materialize.
Trust Could Shape Bullion’s Digital Growth
The forecast points to a possible source of new buyers for the gold market, particularly people who have not previously invested in bullion or gold funds. Researchers estimate that about 65% of untapped demand could come from people who have not invested in gold. The projected $95 billion is intended to represent additional money entering bullion, not a transfer from existing gold products.
But stated willingness to invest is not the same as actual ownership. The report says four in five investors prioritize trust in the provider. Respondents identified clearer regulation, evidence that products are physically backed and a practical way to claim or receive the underlying metal as important conditions. If providers fail to meet those expectations, the headline growth forecast may not be realized.
How a product is distributed also appears to matter. The study reports that adoption is up to seven times higher in markets where digital gold is available through familiar banking, payment or multipurpose apps. That comparison is the report’s stated finding; it does not mean adoption is guaranteed to rise by that amount in every market. Differences in awareness are also pronounced: the report puts awareness at 76% in Indonesia and 71% in India, compared with 19% in Canada.
As an affiliate, we earn on qualifying purchases.
Forecasts Depend on Adoption Barriers
The $160 billion–$170 billion estimate is the report’s central scenario, not a prediction that growth will occur regardless of market conditions. Its bear case puts the 2031 market at $70 billion–$80 billion if barriers persist. A faster-improvement scenario reaches $270 billion–$280 billion. The report also describes a separate $700 billion opportunity: estimated additional demand if all adoption barriers disappeared immediately, calculated using today’s population and wealth. That figure is not the central forecast.
All of the scenarios hold the gold price steady and do not account for major hacks, fraud or custody failures. Those limits matter because 44% of respondents said a major security breach would most undermine their confidence. The scenarios therefore do not show how outcomes might change if gold prices fluctuate or a serious incident damages trust.
The report identifies practical differences in redemption terms as another barrier. Some products allow customers to collect physical gold at only one location worldwide or require holdings equivalent to a 400-ounce bar. Lower minimums and more delivery locations could make redemption more usable for retail investors, although the report does not say how quickly providers will change their terms.
As an affiliate, we earn on qualifying purchases.
Demand and Security Risks Remain
The report offers modeled estimates, not a guarantee that the market will reach its central forecast. It does not establish whether survey respondents who said they would consider digital gold will become customers, how much they might invest, or how quickly the providers will address regulatory and redemption concerns.
The projections also exclude major security incidents, fraud and custody failures, while respondents identified a major breach as a significant threat to confidence. The report does not quantify how a specific breach would affect market size. Its steady-gold-price assumption means the estimates do not capture the effect of future price changes, either.
Awareness and access vary substantially between surveyed markets, and the report does not detail how those differences will change by 2031. The WGC and BCG’s figures are estimates based on their survey, interviews and model; the source material does not provide independent verification of the projected market outcomes.
As an affiliate, we earn on qualifying purchases.
The WGC has outlined a proposed Gold as a Service platform, shared infrastructure intended to help digital gold issuers arrange gold sourcing, custody, compliance and redemption. The council outlined the proposal in March. The source material does not give a launch date or confirm that the service is operating.
For the market forecast to become more than a scenario, providers will need to make progress on the issues raised in the report: clear backing, credible custody, accessible redemption and distribution through channels investors already use. No timetable for those changes is provided. The next developments to watch are the status of the WGC’s proposed infrastructure and whether providers expand redemption options or improve access while maintaining investor confidence.
As an affiliate, we earn on qualifying purchases.
Key Questions
What does the report forecast for digital gold by 2031?
The WGC and BCG estimate a central market range of $160 billion–$170 billion by 2031, compared with $45 billion–$55 billion today. The figure is a scenario-based estimate, not a guaranteed outcome.
What does the report mean by digital gold?
It refers to products that let investors own physical bullion through digital tokens or online accounts while a custodian stores the metal. The report excludes gold-backed ETFs, leveraged products and gold-backed stablecoins from its digital gold market calculation.
Why might the forecast not be reached?
The report identifies trust, regulation, proof of physical backing and redemption access as barriers. Its bear case estimates a market of $70 billion–$80 billion by 2031 if barriers persist; it also excludes major hacks, fraud and custody failures from its scenarios.
What is the report’s $700 billion opportunity?
It is an estimate of additional demand if all adoption barriers disappeared immediately, using today’s population and wealth. It is not the report’s central 2031 forecast, which is $160 billion–$170 billion.
What is Gold as a Service?
It is a proposed WGC shared infrastructure service intended to help issuers with gold sourcing, custody, compliance and redemption. The source material says the proposal was outlined in March but gives no confirmed launch date.
Source: rss
Halloween Picks
halloween
As an affiliate, we earn on qualifying purchases.
