Gold has long been a staple investment in Indian households, symbolizing wealth and tradition. The introduction of Electronic Gold Receipts (EGRs) by the National Stock Exchange represents a significant shift in India's gold market, allowing investors to own gold electronically backed by physical gold in regulated vaults. While both Gold ETFs and EGRs provide digital exposure to gold prices, they differ fundamentally. Gold ETFs are mutual fund products linked to gold prices, while EGRs are direct claims on physical gold. Currently, Gold ETFs dominate due to their established liquidity and familiarity among investors. Analysts like Anindya Banerjee from Kotak Securities highlight that while EGRs could be superior for long-term investors, they require deeper market participation to enhance liquidity. EGRs may also offer lower costs and better pricing efficiency over time. However, challenges such as limited broker support, investor behavior towards physical gold, and taxation issues hinder their growth. For now, Gold ETFs remain the smoother choice for most investors, but EGRs could bridge traditional gold ownership with modern financial efficiency if liquidity improves.