- Quick view: why prices are elevated
- Simple buying checklist (5 steps)
- Budget bands: coins/bars vs ETFs/SGBs vs silver
- Festive playbook: lock, stagger, or swap
The short
- Context: Domestic gold is hovering near fresh highs; silver is also at/near record territory this month.
- If buying jewellery: Keep making charges in check (often ~10–25% for mass jewellery; coins/bars lower). GST is 3% on gold (plus 5% on making charges for jewellery).
- If investing: Consider ETFs/Gold funds for liquidity, or SGBs (when available/new or secondary) for tax efficiency at maturity.
- Silver route: Use Silver ETFs or larger bars to cut per-unit premiums; silver hallmarking is transitioning to HUID tagging from Sep 1, 2025 (voluntary initially).
Simple 5-step buying checklist
- Verify purity: For gold jewellery, ensure BIS hallmark with 6-digit HUID; validate on the BIS Care app. For silver, HUID-style hallmarking starts Sep 1, 2025 (voluntary initially).
- Prefer transparent pricing: Ask for the day’s gold rate per gram, making charge (as % or ₹/g), and taxes printed on invoice. Coins/bars typically have lower making/premiums than jewellery.
- Buyback policy: Confirm who buys back, deductions, and documentation (bill/HUID). Minted coins/bars from reputable brands and bank-channel products tend to have clearer buyback terms.
- Right wrapper for the job: Jewellery for consumption; coins/bars for gifting/stacking; ETFs/Gold funds/SGBs for investing. Avoid “digital gold” with weak investor protections.
- Time the purchase, not the tick: In a rising market, stagger (SIP) or use rate-lock/booking if your jeweller offers it. Don’t chase intraday moves.
Pro tip For jewellery, try to keep making charges in low double-digits; for coins/bars, negotiate line items (premium, packaging) and compare across 2–3 stores.
Budget bands — what makes sense now
₹5,000–₹25,000
- Gold ETF / Gold Fund SIP: Start small, build over the festive quarter.
- Silver: 50–200g bar/coin via reputable jeweller or consider Silver ETF units.
- Avoid: Tiny high-premium gold pendants where making charges dominate.
₹25,000–₹75,000
- Gold: 1–5g 24K coin/bar (lower making); or lump-sum into a Gold ETF.
- Silver: 500g–1kg bar (premiums typically more efficient at 1kg).
- Occasion wear: Lightweight 22K chains/earrings — cap making charges before billing.
₹75,000–₹2,00,000
- Gold: 10–20g 24K bars or a blend of ETF now + plan for SGB tranche (or buy SGB on exchange in small lots).
- Silver: 1–2 kg accumulation via bars or ETF.
- Wedding saving: Rate-book part of jewellery order; stagger remainder.
₹2,00,000+
- Core stack: 50g–100g 24K bars (brand/invoice/HUID-style traceability critical).
- Tax-efficient sleeve: SGB (new tranche or secondary) for maturity tax-free benefit + 2.5% coupon (taxable).
- Silver barbell: Mix 1–5 kg physical with Silver ETF for liquidity.
Reminder: Jewellery is consumption with emotional utility; investing exposure is better via ETFs/Gold funds/SGBs (lower friction, cleaner exit).
Festive plans: lock, stagger, or swap
Lock
Many jewellers let you pre-book at today’s gold rate (pay token; bill later). Useful if you’ve finalised designs and fear a further run-up.
Stagger
Split buys 50-30-20 across the next 4–6 weeks: coins/bars or ETF tranches first; jewellery closer to the event.
Swap
Exchange old gold to offset ticket size; ensure proper weighing, HUID verification on the new piece, and fair deductions disclosed on invoice.
Silver add-on
Silver has outperformed lately; use ETFs or 1kg bars to avoid high premiums on small denominations or ornate artefacts.
Fine print & taxes (quick)
- BIS hallmark (HUID) for gold jewellery is mandatory; verify via BIS Care app.
- GST: 3% on gold value; jewellery making charges attract an additional 5% GST.
- SGBs: Capital gains on redemption at maturity (8 years) are tax-exempt; the 2.5% interest is taxable.
- Silver hallmarking: Transitioning to HUID-style marking from Sep 1, 2025 (voluntary initially); expect process evolution.