GoldPrices – Digital Investing Pushes Physical Gold and Silver Demand Higher
Rekha Prajapati February 05, 2026 05:27 PM

GoldPrices –  Gold and silver have maintained a strong upward trajectory since the beginning of 2025, and a growing share of that momentum can be traced to an unexpected source: digital investing platforms. As more individuals and institutions purchase exposure to precious metals through mobile apps, exchange-traded funds, and online investment tools, demand for physical bullion has increased, reinforcing price strength in global markets.

digital investing boosts gold silver demand

The rally has not been without pauses. Silver experienced a brief correction in early 2026, while gold saw intermittent pullbacks. However, these setbacks have been limited, and both metals have largely preserved their broader upward trend, reflecting sustained investor interest rather than short-term speculation.

Prices Recover Sharply After Recent Declines

International gold prices rose more than 2 percent on Wednesday, extending gains from the previous session, which marked the strongest single-day rise since the global financial crisis of 2008. Market activity suggests that investors are quickly stepping back in after dips, helping prices rebound firmly from recent lows.

According to Aamir Makda, Commodity and Currency Analyst at Choice Broking, both metals have shown notable recoveries. He noted that gold has climbed roughly 12 percent from recent bottom levels and is now trading significantly higher. Silver, after touching a short-term low earlier in the year, has also moved back into stronger territory.

Key Technical Levels in Focus

Makda explained that gold is approaching important resistance zones following its rebound from retracement levels. A move beyond immediate resistance could strengthen upside momentum further, potentially opening the door to higher trading ranges in the near term.

Silver has also crossed several key levels, indicating room for additional gains if current trends hold. Based on technical indicators and market positioning, Makda expects both gold and silver to maintain a moderately bullish tone in the coming days.

Shift in Demand Patterns

While traditional factors such as safe-haven buying and industrial use remain relevant, analysts say they no longer tell the full story. Abhishek Kumar, Sebi-registered investment adviser and founder of Sahaj Money, said the structure of demand has evolved over the past year.

He pointed out that global investment inflows have played a major role in sustaining the rally. Early interest was driven by concerns over economic uncertainty, but the rapid expansion of digital platforms and growth in ETF assets under management have significantly amplified demand.

Digital Platforms Drive Physical Buying

One reason digital investing has had such a strong effect is the structure of most regulated gold and silver ETFs. These products are typically backed by physical metal, requiring fund managers to purchase and store bullion for every new unit issued.

As a result, when investors buy exposure digitally, actual gold or silver is removed from the open market and placed into secured vaults. This direct link between electronic transactions and physical supply has tightened availability, providing additional support to prices.

Faster Markets, Sharper Moves

The rise of electronic trading has also changed how prices behave. Kumar said easier access has brought in a broader range of participants, increasing both trading volumes and the speed of price movements.

With transactions occurring instantly, precious metal prices now respond more quickly to global developments such as interest rate expectations, currency movements, and technical signals. This has led to higher intraday volatility compared with earlier periods dominated by seasonal jewellery demand.

A New Generation of Investors

Another notable change is the growing participation of younger investors. Digital gold products and systematic investment plans have made it easier for first-time buyers to include precious metals in their portfolios.

Unlike earlier patterns tied to weddings or festivals, this group views gold and silver as long-term portfolio diversifiers. The result is a steadier and more consistent flow of investments, helping create a more stable demand base over time.

What Investors Should Watch

As digital participation increases, experts advise investors to examine product structures carefully. Kumar recommends reviewing fund documents to ensure investments are fully backed by physical metal rather than synthetic exposure. He also suggests checking for third-party audits, recognised custodians, and transparency around storage arrangements.

The rise in gold and silver prices is no longer driven solely by fear or factory demand. The shift toward app-based and ETF investing is quietly absorbing physical metal from the market, reshaping supply dynamics and influencing price movements in a lasting way.

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