What Happens When You Sell Digital Gold?
Selling digital gold in India is the reverse of buying — you tell the platform how much to sell (by value or by weight), and the proceeds are credited to your registered bank account or wallet. Most platforms allow you to sell in under 2 minutes from the app. The gold is sold at the current buy-back rate (slightly lower than the market price — the spread).
How to Sell Digital Gold on PhonePe
- Open the PhonePe app and go to Gold under the financial services section.
- Tap Sell.
- Enter the amount (in rupees) or the weight (in grams) you want to sell.
- Review the sell price and confirm.
- The money is credited to your PhonePe wallet or bank account (depending on the amount).
Credits above ₹50,000 typically go directly to your registered bank account.
How to Sell Digital Gold on Google Pay
- Open Google Pay and search for Gold or find it under Financial Services.
- Select Sell Gold.
- Enter the amount or weight.
- Confirm the transaction with your UPI PIN.
- Funds are credited to your linked bank account, usually within 2 business days.
How to Sell Digital Gold on Paytm
- Open Paytm and go to Gold in the investment section.
- Tap Sell Gold.
- Enter the weight or value.
- The proceeds go to your Paytm wallet or your bank account.
Other Options: Delivery to Home and Physical Conversion
Take Delivery of Physical Gold
Instead of selling digitally for cash, you can request physical delivery of gold coins or bars. This is available on all three major platforms once you accumulate at least 0.5 grams (PhonePe/SafeGold) or 1 gram (MMTC-PAMP on Paytm). Delivery charges and GST apply — typically ₹100–₹300 for delivery plus 3% GST on the gold value.
Convert to Jewellery
Some providers (such as MMTC-PAMP) have tie-ups with jewellery brands where you can exchange your digital gold balance for physical jewellery. Making charges and GST apply.
Charges to Be Aware Of
- Sell spread: You get 1.5%–3% less than the live market price when selling back.
- GST on delivery: 3% on gold value + delivery charges if you take physical gold.
- No exit charge for cash sell-back: Selling for cash has no explicit fee, but the spread is the implicit cost.
Tax on Selling Digital Gold
Capital gains from selling digital gold are taxable. Under current rules, gains are taxed at your applicable income tax slab rate. Keep records of your purchase price and sale price for tax filing purposes.
This article is for informational purposes only and does not constitute financial advice. Consult a qualified financial advisor before investing.
For more on what digital gold is and how it works: What is digital gold in India and is it safe?
To understand the risks before you sell: Is digital gold safe on PhonePe, Google Pay and Paytm?
Frequently Asked Questions
How long does it take for money to reach my bank after selling digital gold?
Typically 1–3 business days for bank credits. Wallet credits are usually instant.
Can I sell partial quantities of digital gold?
Yes. You can sell as little as ₹1 worth or 0.001 grams (minimum varies by platform). There is no requirement to sell all your gold at once.
Is there a best time to sell digital gold?
Digital gold tracks the live market price, so timing the sale to a gold price high gives the best return. However, the sell spread means you always get slightly less than the quoted market price regardless of timing.
What if the gold price drops — do I lose money?
Yes. Digital gold has no floor price guarantee. If gold prices fall from your purchase price, selling before recovery will result in a loss.