Before you buy gold: jewellery, a coin, or a gold ETF?

In an Odia home, gold is not just metal. It is wedding jewellery, a mother’s blessing, the thing you fall back on in a bad year. This year Dhanteras falls on 6 November — and in many homes a little gold will come in that day.

But gold is very expensive right now. On 23 October 2026, 10 grams of 24-carat gold cost about ₹1.46 lakh. At that price, it matters to know exactly what you are paying for.

First ask: why am I buying?

Gold does three jobs, and each job needs a different form:

• To wear — jewellery. Here design and feeling have real value.
• For a puja or good luck — a small coin. You keep the tradition and lose less money.
• To save — a gold ETF or gold fund. Here jewellery is the most expensive route.

The mistake happens when we buy jewellery and think of it as an investment.

What you pay for in jewellery

A jewellery bill has three parts:

1. The gold — weight × that day’s rate.
2. Making charges — usually 8% to 25%, depending on the design.
3. GST — 3% on the whole bill, gold and making together.

So in ₹1 lakh of jewellery with 15% making charges, the actual gold is worth about ₹84,400. The other ₹15,600 or so goes on making and GST — and you don’t get that back when you sell. When you sell, the jeweller takes a deduction as well.

Try your own numbers: Jewellery or gold ETF calculator →

Don’t buy without checking the hallmark

BIS hallmarking is mandatory on gold jewellery in India. Look for three marks on every piece:

• The BIS triangle logo
• The purity — such as “22K916” for 22 carat, “18K750” for 18 carat
• A 6-character HUID number — each piece’s own ID

Open the free BIS CARE app on your phone and enter the HUID — it shows the purity and the jeweller’s name. Two minutes, standing at the counter.

The bill should list each of these separately: weight, carat, that day’s rate, making charges, GST. When you sell or exchange later, this bill is your proof.

Exchanging old gold? Work out the jeweller’s deduction first: Old gold value calculator →

Coins and bars

If you want to buy something auspicious on Dhanteras, a small hallmarked coin is a good choice. Making charges are much lower, so more of your money stays in gold. GST is the same 3%.

Mind where you buy it: it is easier to buy from a shop that will take the coin back. When you sell later, that shop usually gives a better rate.

Gold on paper: for saving

If you want your money to move with the gold price, without making charges, theft worries or locker fees, these are the routes:

• Gold ETF — bought and sold on the stock exchange. Needs a demat account. Real gold is held behind each unit. A small yearly cost (expense ratio) is deducted.
• Gold mutual fund — no demat needed. You can run a monthly SIP. It buys gold ETFs inside, so the cost is a little higher.
• Sovereign Gold Bonds (SGB) — the government hasn’t issued new SGBs since February 2024. Old bonds trade on the stock exchange, but from 1 April 2026 the tax exemption at maturity applies only to original buyers — not to bonds bought on the exchange.

“Digital gold” apps — be careful

Many apps sell “digital gold” from ₹10. It looks easy. But on 8 November 2025, SEBI warned that digital gold sits outside its regulation. If the company shuts down or something goes wrong, there is no regulator’s investor protection to fall back on.

There are regulated routes for the same job — gold ETFs and gold mutual funds.

Tax

If you sell gold at a profit, you pay tax:

• Gold ETF: held over 12 months, 12.5% on the gain.
• Jewellery, coins and gold mutual funds: held over 24 months, 12.5%.
• Sell sooner than that, and the gain is added to your income and taxed at your slab.

To prove what you paid when you sell, you need the bill — one more reason to keep it.

How much gold should you hold?

Gold pays no interest and runs no business. Its price can sit still for years. But in bad times, when other things fall, gold often holds — it works like a shield.

That is why many financial planners suggest keeping a small part of total savings in gold — not all of it. For 10–15 year goals like a child’s education or retirement, gold should not be the only route.

A short Dhanteras checklist

• Decide beforehand why you’re buying — to wear, for luck, or to save.
• Ask that day’s rate at two or three shops.
• Ask the making charge percentage, and bargain.
• Check the HUID in the BIS CARE app.
• Take an itemised bill, and keep it.
• Don’t borrow to buy gold.

Gold is part of our homes. Just buy it knowing the numbers — then you keep both the feeling and the money.

Sources: BIS hallmarking rules, SEBI’s digital gold advisory (8 November 2025), 2026 income tax rules, and the Mumbai gold rate on 23 October 2026. Gold prices change daily. Last checked: 23 October 2026.

This letter is for education only. It is not investment advice. Markets go up and down. Decide from your own goals, time, and how much risk you can live with.