{"id":8543,"date":"2026-10-30T10:41:40","date_gmt":"2026-10-30T05:11:40","guid":{"rendered":"https:\/\/maxiomwealth.com\/blog\/?p=8543"},"modified":"2026-10-30T10:41:42","modified_gmt":"2026-10-30T05:11:42","slug":"buying-gold-this-dhanteras-jewellery-etf-gold-fund","status":"publish","type":"post","link":"https:\/\/maxiomwealth.com\/blog\/buying-gold-this-dhanteras-jewellery-etf-gold-fund\/","title":{"rendered":"Buying Gold This Dhanteras? Jewellery, ETF or Gold Fund"},"content":{"rendered":"

On 28 October 2026, 24-carat gold was quoted at roughly Rs 1.43 lakh to Rs 1.44 lakh per 10 grams, and 22-carat at around Rs 1.31 lakh to Rs 1.32 lakh, before GST. Dhanteras falls on Friday, 6 November, and so millions of families will spend this money in a single evening, often without checking what they are paying for.<\/p>\n\n

Buying gold on Dhanteras is a tradition worth keeping, but the form you buy it in decides how much of your money is actually gold. A necklace, a coin and a gold ETF unit can cost the same on the day of purchase and be worth very different amounts when you sell.<\/p>\n\n

What are your options for buying gold this Dhanteras?<\/h2>\n\n

You can buy physical gold as jewellery, coins or bars, or you can buy financial gold through gold ETFs on the stock exchange and gold mutual funds that invest in those ETFs. Existing Sovereign Gold Bonds trade on the exchange too, and our post on buying Sovereign Gold Bonds in 2026<\/a> covers that route in detail.<\/p>\n\n

<\/colgroup>
Route<\/th>What you pay upfront<\/th>Storage and purity<\/th>Selling it<\/th><\/tr><\/thead>
Jewellery<\/td>Gold value, making charges and 3% GST<\/td>Home or bank locker; hallmarked 22K<\/td>Back to a jeweller, usually with deductions<\/td><\/tr>
Coins and bars<\/td>Gold value, a smaller premium and 3% GST<\/td>Home or bank locker; hallmarked 24K<\/td>Back to a jeweller, usually with deductions<\/td><\/tr>
Gold ETF<\/td>Market price plus brokerage; yearly expense ratio<\/td>Held in your demat account<\/td>Sell on the exchange during market hours<\/td><\/tr>
Gold mutual fund<\/td>NAV; expense ratio of the fund and the ETF it holds<\/td>No demat needed; SIP possible<\/td>Redeem with the fund house<\/td><\/tr><\/tbody><\/table><\/figure>\n\n

How much do making charges and GST really cost you?<\/h2>\n\n

Making charges are the jeweller’s fee for turning metal into a design, and they vary by shop and by piece. GST of 3% is then charged on the full bill, including making charges. Neither of these comes back when you sell, because a jeweller buying back your piece pays only for the gold, and often less than the day’s rate.<\/p>\n\n

Here is how a 10-gram 22K chain adds up at the 28 October rate, assuming a making charge of 12% (an illustrative figure, since actual charges differ widely).<\/p>\n\n

<\/colgroup>
Item<\/th>Amount<\/th><\/tr><\/thead>
Gold value, 10 g of 22K<\/td>Rs 1,31,360<\/td><\/tr>
Making charges at 12%<\/td>Rs 15,763<\/td><\/tr>
GST at 3% on Rs 1,47,123<\/td>Rs 4,414<\/td><\/tr>
Total bill<\/td>Rs 1,51,537<\/td><\/tr>
Paid above the value of the gold<\/td>Rs 20,177 (about 15%)<\/td><\/tr><\/tbody><\/table><\/figure>\n\n

So gold prices would have to rise about 15% before that chain is worth what you paid for it, and that is before any buyback deduction. Think of it like buying a sari for a wedding: you pay for the work as well as the silk, and nobody refunds the embroidery if you sell it later. A gold ETF, by contrast, carries no GST on purchase and no making charge, so almost all of your money goes into the metal.<\/p>\n\n

How is gold taxed when you sell it?<\/h2>\n\n

All forms of gold are now taxed at 12.5% without indexation on long-term gains, and at your slab rate on short-term gains. What differs is the holding period that makes a gain long-term, which is 12 months for gold ETFs and 24 months for jewellery, coins, bars and gold mutual funds.<\/p>\n\n

<\/colgroup>
Form<\/th>Long-term after<\/th>Long-term tax<\/th>Short-term tax<\/th><\/tr><\/thead>
Jewellery, coins, bars<\/td>24 months<\/td>12.5%<\/td>Slab rate<\/td><\/tr>
Gold ETF<\/td>12 months<\/td>12.5%<\/td>Slab rate<\/td><\/tr>
Gold mutual fund<\/td>24 months<\/td>12.5%<\/td>Slab rate<\/td><\/tr><\/tbody><\/table><\/figure>\n\n

Is digital gold on an app safe to buy?<\/h2>\n\n

Digital gold sold on payment and shopping apps falls outside SEBI’s regulation. In November 2025, SEBI cautioned investors that digital gold and e-gold products are neither securities nor commodity derivatives, so none of the investor protection mechanisms of the securities market apply to them, and buyers carry counterparty and operational risk.<\/p>\n\n

SEBI pointed investors instead to gold ETFs, exchange-traded commodity derivatives and Electronic Gold Receipts traded on stock exchanges. So if you like the idea of buying gold in small amounts from your phone, a gold ETF or a gold mutual fund SIP gives you the same convenience inside a regulated product.<\/p>\n\n

How much of your portfolio should be in gold?<\/h2>\n\n

For most households, 5% to 10% of investments in gold is a sensible range. Start by keeping three to six months of expenses liquid, put your safe money in FDs and debt funds, and invest the rest for growth, with gold sitting alongside as a diversifier rather than as the main engine.<\/p>\n\n

Gold works like the spare tyre in your car, because it earns nothing on a normal day but proves its worth on the day something goes wrong. That said, it pays no interest, and with the RBI raising the repo rate to 5.50% on 7 October 2026, the cost of holding a non-earning asset has gone up a little. On a Rs 20 lakh portfolio, a 5% to 10% share works out to Rs 1 lakh to Rs 2 lakh; our guide to asset allocation<\/a> shows how to split the rest.<\/p>\n\n

What should you check before buying jewellery?<\/h2>\n\n

If you are buying jewellery or coins this Dhanteras, a few checks at the counter protect both the purity of what you buy and its resale value.<\/p>\n\n

    \n\n
  1. Look for the BIS hallmark with a six-digit HUID code, and check it on the BIS CARE app before paying.<\/li>\n\n\n
  2. Ask for an itemised bill showing weight, purity, gold rate, making charges and GST separately.<\/li>\n\n\n
  3. Get the jeweller’s buyback and exchange policy in writing, including the deduction applied.<\/li>\n\n\n
  4. Carry your PAN for purchases of Rs 2 lakh or more, and keep any cash payment below Rs 2 lakh, because larger cash receipts are barred under Section 269ST.<\/li>\n\n<\/ol>\n\n

    A festive purchase that also works as an investment<\/h2>\n\n

    To sum up, jewellery is something you wear and enjoy, while ETFs and gold funds are how you invest, and the two jobs are best kept apart. This Dhanteras, buy a small coin or piece for the puja, put the investment portion into a gold ETF or gold fund, and check that your total gold stays within 5% to 10% of your portfolio.<\/p>\n\n

    What else do people ask about buying gold?<\/h2>\n\n

    Is 24K or 22K better for investment?<\/h3>\n\n

    24K coins and bars are better for investment because they are purer and carry lower making charges. 22K is used for jewellery because pure gold is too soft to hold a design.<\/p>\n\n

    Should I choose a gold ETF or a gold mutual fund?<\/h3>\n\n

    A gold ETF suits you if you already have a demat account and want lower costs and a 12-month long-term holding period. A gold mutual fund suits you if you want a monthly SIP without a demat account, though its total costs are usually a little higher.<\/p>\n\n

    Is gold received as a Diwali gift taxable?<\/h3>\n\n

    Gifts from relatives such as parents, siblings or a spouse are not taxed. Gifts from non-relatives become taxable in your hands if their total value in a year exceeds Rs 50,000.<\/p>\n\n

    Can I sell an ETF and buy jewellery later?<\/h3>\n\n

    Yes. Many families build a gold ETF or fund holding over the years and redeem it when a wedding comes up, which avoids paying making charges on gold that would otherwise sit in a locker.<\/p>","protected":false},"excerpt":{"rendered":"

    Buying gold this Dhanteras? Compare jewellery, coins, gold ETFs and gold funds on making charges, GST, tax and safety before you spend on 6 November 2026.<\/p>\n","protected":false},"author":3,"featured_media":8548,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[1371,918,1018],"class_list":["post-8543","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-financial-planning-money-matters-investment-advisor","tag-dhanteras","tag-gold","tag-gold-etf"],"_links":{"self":[{"href":"https:\/\/maxiomwealth.com\/blog\/wp-json\/wp\/v2\/posts\/8543","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/maxiomwealth.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/maxiomwealth.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/maxiomwealth.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/maxiomwealth.com\/blog\/wp-json\/wp\/v2\/comments?post=8543"}],"version-history":[{"count":1,"href":"https:\/\/maxiomwealth.com\/blog\/wp-json\/wp\/v2\/posts\/8543\/revisions"}],"predecessor-version":[{"id":8544,"href":"https:\/\/maxiomwealth.com\/blog\/wp-json\/wp\/v2\/posts\/8543\/revisions\/8544"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/maxiomwealth.com\/blog\/wp-json\/wp\/v2\/media\/8548"}],"wp:attachment":[{"href":"https:\/\/maxiomwealth.com\/blog\/wp-json\/wp\/v2\/media?parent=8543"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/maxiomwealth.com\/blog\/wp-json\/wp\/v2\/categories?post=8543"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/maxiomwealth.com\/blog\/wp-json\/wp\/v2\/tags?post=8543"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}