• • Assured Quality: They are backed 100% by physical gold of standard purity (typically 995 or 999).
  • Physical Conversion: Unlike traditional Gold ETFs, you can surrender your EGRs and take physical delivery of the actual gold from the vault.

• Low Investment Size: You can purchase EGRs in denominations as small as 100 milligram.

What is an Electronic Gold Receipt (EGR)?

Think of EGR (Electronic Gold Receipt) as a digital certificate that represents real physical gold stored safely in a SEBI-regulated vault.

Instead of buying and storing gold at home, you buy an EGR, and the actual gold is kept in a secure vault on your behalf.

Simple Example

Imagine you want to own 1 gram of gold.

• You pay for 1 gram of gold.
• The gold is stored in an approved vault.
• You receive an Electronic Gold Receipt (EGR) in your Demat account.
• The EGR proves that you own that gold.

It’s similar to how shares in your Demat account represent ownership in a company. An EGR represents ownership of physical gold.

Why Invest in EGR?

✅ No risk of theft or loss of physical gold at home.

✅ Gold purity is certified and standardized.

✅ Easy to buy and sell through stock exchanges.

✅ Stored securely in regulated vaults.

✅ Transparent pricing based on market gold prices.

✅ Can be converted into physical gold (subject to exchange and vault rules).

How to Buy EGR Using a Demat Account?

1. Open a Demat and Trading Account with a broker such as Zerodha, Groww, or Angel One.
2. Complete your KYC process.
3. Add funds to your trading account.
4. Log in to your broker’s platform.
5. Search for available EGR contracts listed on the exchange.
6. Place a buy order.
7. Once purchased, the EGR units will be credited to your Demat account.

How to Sell EGR?

1. Log in to your trading account.
2. Go to your holdings.
3. Select the EGR units you own.
4. Place a sell order.
5. When another investor buys them, the sale is completed.
6. The money is credited to your trading account.

Example of Profit:

Suppose:

• You buy an EGR representing 1 gram of gold at ₹7,000.
• After a few months, gold rises to ₹8,000 per gram.
• You sell the EGR.

Profit = ₹8,000 − ₹7,000 = ₹1,000 (before taxes and charges).

EGR vs Physical Gold

Easy One-Line Definition

An Electronic Gold Receipt (EGR) is a digital proof of ownership of real gold stored in a secure vault, which can be bought and sold through a Demat account just like shares.