As of March 2026, Indian households collectively own between 25,000 to 30,000 tonnes of gold, valued at around $5 trillion, making it a significant asset class. This article explores two alternatives for investing in gold: Digital Gold and Gold Exchange-Traded Funds (ETFs). Digital Gold can be purchased online, with the issuer storing the gold in a vault. However, it is not regulated by the Reserve Bank of India (RBI) or the Securities and Exchange Board of India (SEBI). Taxation on Digital Gold varies based on the holding period, with long-term capital gains (LTCG) taxed at 12.5% after two years. In contrast, Gold ETFs are commodity-focused mutual funds that trade on stock exchanges, with each unit equivalent to 1 gram of gold. Gold ETFs provide liquidity and do not require physical storage, but are also subject to LTCG and short-term capital gains (STCG) taxes. Investors should consider their investment goals, risk appetite, and the associated costs of gold investments, which can include making charges, storage fees, and brokerage costs. Experts recommend limiting gold investments to no more than 10% of an investment portfolio.