The Electronic Gold Receipt (EGR) is a new investment product that allows investors to trade gold digitally, backed by physical gold stored with a Vault Manager. Each EGR corresponds to a specific quantity of gold, but the process of converting physical gold into EGRs is not straightforward. Investors must ensure their gold meets strict purity standards (999 or 995) set by the Bureau of Indian Standards and stock exchanges, which often requires melting and refining jewellery. Additionally, converting EGRs back into physical gold is cumbersome, involving multiple steps and costs. EGRs incur various fees, including vault storage, brokerage, and GST, which can be higher than those associated with Gold ETFs. Furthermore, the current liquidity of EGRs is limited, which can lead to unfavorable trading conditions. As a result, while EGRs offer a novel way to link physical and digital gold ownership, their advantages over established gold investment options remain minimal, making them less attractive for investors already using Gold ETFs or mutual funds.