Could Tokenised Gold Change the Value Equation?
Gold has traditionally derived its appeal from a combination of scarcity, liquidity and its role as a store of value. But as financial ownership becomes increasingly digital, the way investors access and use gold is beginning to change. Tokenisation could be the next step in that evolution, turning an asset that has historically been held, traded and stored into one that can also move through digital financial networks.
That shift raises a bigger question than whether investors can buy gold digitally. Could making gold easier to access, transfer and use eventually expand the pool of people and institutions willing to hold it — and, in turn, support a much higher value for the metal?
The question has gained attention as tokenised gold moves beyond an experimental concept. A recent Kitco commentary explored whether the wider adoption of tokenised gold could, over time, contribute to a gold price as high as $20,000 an ounce. The figure is not a forecast, but it highlights an important point: the impact of tokenisation may ultimately be measured by the demand and utility it creates, rather than by the technology itself.
There is already evidence that the digital gold market is expanding. The World Gold Council has estimated that tokenised gold crossed $4 billion in market value in 2025, while its work on digital gold infrastructure has highlighted the need for systems that can connect physical gold custody with digital issuance, reconciliation and redemption. These developments suggest that the industry is beginning to build the infrastructure needed for digital gold to become more scalable and integrated.
From a digital wrapper to a new use case
Tokenisation by itself does not make gold more valuable. If an investor simply moves from a traditional gold product into a token representing the same underlying metal, the ownership format has changed but the underlying demand has not.
The more significant possibility is that digital gold could make the asset useful in more places. Fractional ownership could lower entry barriers. Faster transfers could make gold easier to move between participants. A verified digital claim could potentially be used in collateral arrangements or integrated into other digital financial applications. In such a scenario, gold would not only be an asset to hold; it could become an asset that can be transferred and deployed more efficiently.
Why supply still matters
Any potential impact on value ultimately comes back to the balance between demand and supply. Gold mine production cannot expand instantly when investment interest rises. At the same time, existing above-ground gold can return to the market when holders choose to sell or recycle it.
This means tokenisation should not be viewed as a direct price catalyst. Its significance would come if it brings genuinely new participants, capital or uses into the gold market. If those sources of demand grow meaningfully while supply remains relatively slow to respond, the market could require higher prices to balance buyers and sellers.
What would it take to reach $20,000?
A $20,000 gold price would represent a substantial revaluation and would require far more than digital access. Monetary conditions, currency purchasing power, investment demand, institutional adoption and gold’s role as a strategic asset would all matter.
Tokenisation could be one part of that broader equation by making gold more accessible and potentially more functional within modern financial infrastructure. But the technology will only matter if investors trust what sits behind the token.
Questions around custody, legal ownership, proof of physical backing, auditing and redemption rights will therefore be critical. A token that represents gold is only as reliable as the framework connecting the digital claim to the underlying metal.
The future of tokenised gold, then, may not be about replacing physical gold with a digital version. It could be about extending what gold can do in a financial system that increasingly operates digitally. If that expansion creates meaningful new demand, the value proposition of gold could evolve along with it.