Dhanteras Gold Guide: Jewellery, Coin, ETF or Gold Bond, and What ₹1 Lakh Really Buys in Each
The gold price is the same whichever form you buy; the cost of getting in and out is not. On IBJA's rate of 15 October 2026, ₹1 lakh put into 22-carat jewellery with a 14% making charge fetches about ₹81,800 if sold back the same day, a coin ₹89,000 to ₹94,200, a gold ETF about ₹99,800. Here is the arithmetic for each form, the recent fall in the price, why gold bonds can only be bought second-hand now, what the Finance Act 2026 changed in their tax, SEBI's warning on digital gold, and the checks to run on a jewellery bill.
On Dhanteras the question is rarely whether to buy gold. It is which gold. A necklace, a coin, a gold ETF, a Sovereign Gold Bond and an app's digital gold all follow the same price, but they do not cost the same to own. Put ₹1 lakh into each on the same day, sell it back the same day, and the answer runs from about ₹99,800 to about ₹81,800. The difference is making charges, premiums, GST and dealing costs. This guide works out each one on the day's published price. It starts with that price, which has just fallen for four sessions in a row.
Written on 15 October 2026. Prices are the India Bullion and Jewellers Association's rates for 15 October, published at 3:49 pm, per 10 grams and before GST. The Sovereign Gold Bond figures are from the RBI's own notices, and the ETF figures from the fund house's page. Making charges, coin premiums, buy-back deductions and dealing costs vary from seller to seller. The figures used for them here are assumptions, and each is stated where it is used. Dhanteras falls on Friday 6 November 2026. This guide explains costs and rules. It does not recommend buying or selling gold in any form.
₹1,45,564 — 10 grams of 24-carat gold on 15 October, before 3% GST · −2.7% — the fall in four sessions from 9 October · ₹81,758 — what ₹1 lakh of 22-carat jewellery with a 14% making charge fetches back the same day · ₹99,800 — the same for a gold ETF · 22.3% — the rise that jewellery needs before its buyer breaks even · Feb 2024 — the last new issue of Sovereign Gold Bonds.
Where the gold price stands, and the recent fall
These are IBJA's rates for 15 October. Jewellers quote their own rates, usually close to these, and add GST and the making charge on top.
| IBJA rate | 24 carat, 10 g | 22 carat, 10 g | Silver, 1 kg | 24 carat, change on the day |
|---|---|---|---|---|
| Friday 9 October | ₹1,49,614 | ₹1,37,046 | ₹2,21,170 | — |
| Monday 12 October | ₹1,48,425 | ₹1,35,957 | ₹2,20,874 | −₹1,189 |
| Tuesday 13 October | ₹1,47,662 | ₹1,35,258 | ₹2,19,372 | −₹763 |
| Wednesday 14 October | ₹1,46,345 | ₹1,34,052 | ₹2,14,392 | −₹1,317 |
| Thursday 15 October | ₹1,45,564 | ₹1,33,337 | ₹2,07,098 | −₹781 |
| Change over four sessions | −₹4,050 (−2.7%) | −₹3,709 (−2.7%) | −₹14,072 (−6.4%) |
Some headlines call this a crash. In rupees it is a fall of 2.7% in four sessions for gold, and a sharper 6.4% for silver. The RBI's own prices give the longer view. It redeems Sovereign Gold Bonds at the average of IBJA's closing 999 rate over the three business days before the redemption date. That price was ₹15,328 a gram in early September and is ₹14,725 for the redemption due on 15 October, a fall of 3.9%. The same series was redeemed a year earlier, on 15 October 2025, at ₹12,394, so gold is 18.8% dearer than it was then. Against ₹12,792, the RBI's price for the redemption of 20 October 2025, in the days before last Diwali, it is 15.1% dearer.
Why the price has fallen
Gold pays no interest. When a safe US government bond pays well, holding gold means giving that income up, and some money moves out of gold. That is the background now.
- US rates have gone up, not down. The Federal Reserve raised its target range by a quarter point to 3.75–4% on 16 September. Its median projection implies one more rise this year, and it next meets on 27–28 October.
- US bonds pay more than 5%. The 10-year Treasury yield was 5.21% on 13 October, by the Fed's daily table.
- US inflation is not cooling. Consumer prices rose 0.6% in September alone and 3.7% over the year, by the Bureau of Labor Statistics. That keeps the case for higher rates alive.
None of this says where the price goes next. A fall before Dhanteras does give a buyer more metal for the same money. At the bullion rate before GST, ₹1 lakh bought 6.68 grams on 9 October and 6.87 grams on 15 October. The extra 0.19 grams is worth ₹2,707 at the 15 October rate.
₹1 lakh in each form: what you get, and what it fetches back
The fairest test of what a form of gold costs is a round trip. Buy ₹1 lakh of it at the 15 October price, sell it back at once at the same price, and see what is left. Whatever is missing is the cost of the form. It is not a market loss, because the price has not moved.
| ₹1,00,000 put into | You pay per gram | Pure gold you own | Worth if sold the same day | Rise needed to break even |
|---|---|---|---|---|
| 22-carat jewellery, plain, 8% making | ₹14,832 | 6.18 g | ₹86,300 | 15.9% |
| 22-carat jewellery, 14% making | ₹15,656 | 5.85 g | ₹81,758 | 22.3% |
| 22-carat jewellery, intricate, 22% making | ₹16,755 | 5.47 g | ₹76,397 | 30.9% |
| 24-carat coin from a bank, 8% premium | ₹16,193 | 6.18 g | ₹88,997 | 12.4% |
| 24-carat coin from a jeweller or refiner, 2% premium | ₹15,293 | 6.54 g | ₹94,232 | 6.1% |
| Digital gold on an app | ₹14,993 | 6.67 g | ₹97,087 | 3.0% |
| Sovereign Gold Bond, bought on the exchange | ₹14,556 | 6.87 g | ₹99,000 | 1.0% |
| Gold ETF | ₹14,571 | 6.86 g | ₹99,800 | 0.2% |
IBJA rates for 15 October: ₹14,556 a gram for 999 and ₹13,334 for 916, before GST. Jewellery: the 22-carat rate plus the making charge shown, with 3% GST on the whole, sold back at the 22-carat rate less 4%. Coins: the 999 rate plus the premium shown, with 3% GST, sold back sealed at 1% below the rate. Digital gold: 3% GST on purchase, sold at the rate, with the app's own buy–sell spread not counted. Gold bond: bought at the gold price and sold 1% below it. ETF: 0.1% for brokerage and spread each way. Every premium, deduction and dealing cost here is an assumption; ask your own seller for theirs.
The same-day loss is only the cost of entry and exit. Holding has costs too. An ETF charges a fee every year, and jewellery has none once bought. A gold bond pays a little interest, and digital gold pays nothing. The sections below take each form in turn.
Gold jewellery: you pay for the craft
A jewellery bill has three parts. The gold is charged at the jeweller's rate for its purity, usually 22 carat. The making charge is added on top, as a percentage of the gold value or a flat sum per gram. Then 3% GST is charged on the whole, making charge included. When the piece is sold back, the jeweller pays the gold rate on its weight and purity, minus a deduction. The making charge and the GST are not returned.
That is why jewellery needs the largest rise to break even. With a 14% making charge, ₹1 lakh buys a 6.39-gram piece of 22 carat, which holds 5.85 grams of pure gold. Sold back the same day at a 4% deduction, it fetches ₹81,758. The deduction a jeweller applies matters almost as much as the making charge.
| Deduction on resale, 14% making charge | ₹1 lakh fetches back | Lost |
|---|---|---|
| 2% | ₹83,461 | 16.5% |
| 4% | ₹81,758 | 18.2% |
| 6% | ₹80,055 | 19.9% |
| 10% | ₹76,648 | 23.4% |
Each two points of deduction cost about ₹1,700 on ₹1 lakh, so the buy-back terms are worth asking for before you pay.
None of this makes jewellery a bad buy. It is something to wear, and the making charge pays for the work. It is a poor way to hold gold as an investment, and the bill should be read with that in mind.
Six checks on a jewellery bill
- The hallmark. Hallmarking is mandatory for 14, 18, 20, 22, 23 and 24 carat jewellery in the 392 districts on the Bureau of Indian Standards' list. The mark has three parts: the BIS logo, the purity, and a six-character HUID that can be checked in the BIS Care app.
- Net weight, not gross. Stones, enamel and beads should be weighed and priced apart from the gold, not charged at the gold rate.
- The rate and purity on the bill. The bill should show the gold rate for the day, the purity, the weight, the making charge and the GST as separate lines.
- The buy-back terms, in writing. Ask what the jeweller deducts when buying back its own pieces, and whether it pays the same in cash as in exchange.
- PAN and payment. A PAN must be quoted on a purchase above ₹2 lakh, under rule 159 of the Income-tax Rules, 2026. A jeweller cannot accept ₹2 lakh or more in cash for one purchase, under section 186 of the Income-tax Act, 2025.
- Keep the bill. It is your proof of cost when you sell, and of the source of the gold if anyone asks.
Exchanging old gold for new is a sale. The Act treats an exchange as a transfer, so the gain on the old gold is taxed as if it had been sold for the value the jeweller allows. GST is charged on the full value of the new piece, not on the difference. The Diwali money guide works an example.
Gold coins and bars: less to pay, but ask who buys them back
A coin is pure gold, usually 24 carat, with no making charge in the jewellery sense. It still costs more than the bullion rate. The seller adds a premium for minting and packing, and 3% GST is charged on top. On the assumptions above, a coin bought from a jeweller or refiner at a 2% premium loses ₹5,768 of ₹1 lakh on a same-day sale. A coin from a bank at an 8% premium loses ₹11,003.
- Ask where you will sell it. Banks that sell gold coins generally do not buy them back. A bank coin is later sold to a jeweller or a refiner, who will test it and pay their own rate.
- Keep it sealed. A sealed coin with its certificate is easier to sell close to the day's rate. An opened coin is usually tested, and a deduction taken.
- Check the purity mark. A 24-carat coin should be marked 999 or 995 and carry the seller's assay certificate.
Gold ETFs: the cheapest way in and out, with a yearly fee
A gold ETF is a mutual fund that holds physical gold in a vault and trades on the stock exchange like a share. It needs a demat account and a broker. It carries no GST and no making charge, and its price follows the domestic gold price through the day. Units are small. Nippon India ETF Gold BeES, the oldest, had a NAV of ₹119.74 on 14 October, so a buyer can start with a few hundred rupees.
The cost of an ETF comes in two parts. Dealing costs, a brokerage and the gap between buying and selling prices, are small: about ₹200 on a ₹1 lakh round trip, on this guide's assumption. Then the fund's expense ratio is taken from its value every day. The best measure of the whole cost is how far the fund trails the gold it holds. The fund house publishes that comparison.
Over one year to 30 September the fund returned 27.16% against 28.63% for its benchmark. A gap of about 1.4 points a year is the price of convenience: no locker, no purity question and no making charge. Fees differ between ETFs, so compare the same figure on each fund house's page before choosing one. A gold mutual fund, or fund of funds, invests in gold ETFs for buyers without a demat account. It adds its own expense ratio on top, and it is taxed as long-term only after 24 months, against 12 for an ETF.
Sovereign Gold Bonds: no new issues, and a narrower tax exemption
A Sovereign Gold Bond is a government security counted in grams of gold, issued by the RBI for the Government of India. It pays the gold price on redemption, plus interest of 2.5% a year on the amount first invested, credited every six months. It runs for eight years, and the RBI allows early redemption after the fifth year, on an interest date.
No new bonds are on sale. The last issue was Series IV of 2023-24, open from 12 to 16 February 2024 at ₹6,263 a gram, or ₹6,213 for online applicants. The RBI's list of tranches ends there. A buyer today can only buy an existing bond from its holder on the stock exchange, in demat form. Trading in many series is thin, and a bond can trade above or below the gold price, which is why this guide assumes a 1% cost to sell.
Two facts change the arithmetic for a buyer on the exchange.
- The interest is small on today's price. It is 2.5% of the original issue price, not of the price you pay. A bond issued in October 2019 at ₹3,788 pays ₹94.70 a year per unit. On a price near ₹14,725 that is 0.64% a year, and it is taxed at your slab rate.
- A buyer on the exchange is taxed at maturity. The Finance Act, 2026 rewrote the exemption in section 70 of the Income-tax Act, 2025. From 1 April 2026 a redemption is exempt only where the bond is held by an individual from the date of original issue until maturity. Someone who buys on the exchange pays tax on the gain even if they hold it to the end.
For holders: what an early redemption looks like now
The 2019-20 Series V bonds can be redeemed early on 15 October 2026. The RBI has set the price at ₹14,725 a unit.
Until 31 March 2026, that early redemption would have been tax-free. Now a holder of ten units who redeems early pays about ₹14,218 on a gain of ₹1,09,370. The same first buyer who holds to maturity in October 2027 keeps the exemption, and takes whatever the price is then. This is the trade-off each holder now weighs.
Digital gold: easy to buy, outside SEBI's rules
Apps and wallets sell gold by the rupee, held in a vault by a partner company. The buyer pays 3% GST on the purchase, and no GST comes back on a sale. The app also sets its own buying and selling prices, and the gap between them is a further cost that this guide has not counted. On GST alone, ₹1 lakh fetches back about ₹97,087 the same day.
On 8 November 2025 SEBI cautioned the public that digital gold products are not notified as securities and are not regulated as commodity derivatives, so they operate outside its oversight. It pointed to gold ETFs and electronic gold receipts as the regulated alternatives. No regulation of digital gold has been notified since. Digital gold is taxed like physical gold when sold.
The tax when you sell, by form
| Form | Long-term after | Tax on a long-term gain | Tax on a short-term gain |
|---|---|---|---|
| Jewellery, coins, bars | 24 months | 12.5% | Your slab rate |
| Digital gold | 24 months | 12.5% | Your slab rate |
| Gold ETF | 12 months | 12.5% | Your slab rate |
| Gold mutual fund or fund of funds | 24 months | 12.5% | Your slab rate |
| Sovereign Gold Bond sold on the exchange | 12 months | 12.5% | Your slab rate |
| Sovereign Gold Bond redeemed early with the RBI | — | 12.5%, from 1 April 2026 | — |
| Sovereign Gold Bond held by its first buyer to maturity | — | Exempt | — |
There is no indexation on any of these, and 4% cess is added to the tax. Gold received as a gift or inheritance takes the earlier owner's cost and holding period, under section 73. Work out the tax on your own sale in the capital gains calculator.
What it means for you
| If you are buying gold to… | What the numbers say |
|---|---|
| Wear, or give as jewellery | The making charge is the price of the piece, not of the gold. Compare making charges and buy-back deductions between jewellers, check the HUID, and keep the bill. |
| Mark the day with a small purchase | A coin from a jeweller or refiner costs less to get in and out of than a bank coin. Ask who will buy it back, and keep it sealed. |
| Hold as an investment | On cost alone, an ETF loses the least on a round trip, and a gold bond on the exchange is close behind. The ETF charges a yearly fee, and a bond bought second-hand pays little interest and is taxed at maturity. |
| Buy small amounts often, on an app | Digital gold carries 3% GST and the app's own spread, and SEBI does not regulate it. A gold ETF or gold fund does the same job inside SEBI's rules. |
| Swap old jewellery for new | Work out the gain on the old gold first. The exchange is taxed as a sale. |
| Decide on a bond you already hold | Early redemption is now taxed at 12.5% plus cess. A first buyer who holds to maturity keeps the exemption. |
Gold costs the same per gram whatever the wrapper. The wrapper sets what comes back. On the 15 October price, ₹1 lakh of jewellery with a 14% making charge fetches about ₹81,800 back at once, a coin ₹89,000 to ₹94,200, digital gold about ₹97,100, a gold bond about ₹99,000 and a gold ETF about ₹99,800. The four-session fall of 2.7% gives a Dhanteras buyer slightly more metal for the money. It says nothing about where the price goes next, and gold is still about 19% dearer than a year ago.
Frequently Asked Questions
What is the gold rate today for 24 carat and 22 carat? On 15 October 2026, IBJA's rate was ₹1,45,564 for 10 grams of 24-carat gold and ₹1,33,337 for 22 carat, before GST. With 3% GST that is ₹1,49,931 and ₹1,37,337. Jewellers add their making charge on top.
Why has the gold price fallen? US interest rates have risen. The Federal Reserve raised its rate on 16 September, and the 10-year US Treasury yield was 5.21% on 13 October. Gold pays no interest, so a higher yield on safe bonds draws money away from it. The 24-carat rate fell 2.7% in the four sessions to 15 October, and silver fell 6.4%.
How much gold does ₹1 lakh buy? About 6.87 grams of pure gold at the 15 October bullion rate before GST, or 6.67 grams with 3% GST. In 22-carat jewellery with a 14% making charge, it buys a 6.39-gram piece holding 5.85 grams of pure gold.
Which is the cheapest way to buy gold on Dhanteras? On the cost of buying and selling back, a gold ETF is cheapest, losing about ₹200 on ₹1 lakh, then a gold bond on the exchange, then digital gold, then coins. Jewellery costs the most because the making charge and GST are not returned on resale.
Is GST charged on the making charge of gold jewellery? Yes. On ready-made jewellery, 3% GST is charged on the whole bill, making charge included. Where a jeweller works on gold you supply and bills only the labour, that labour carries 5%.
Can I still buy Sovereign Gold Bonds? Not from the RBI. The last new issue was Series IV of 2023-24 in February 2024. Existing bonds can be bought on the stock exchange from their holders, in demat form. A buyer on the exchange is taxed on the gain at maturity under the rules in force from 1 April 2026.
Is a Sovereign Gold Bond still tax-free? Only for an individual who held it from the date of original issue until maturity. An early redemption with the RBI is taxed at 12.5% from 1 April 2026, and so is any bond bought on the exchange. The 2.5% interest has always been taxed at the slab rate.
Is digital gold safe? It is not regulated by SEBI. On 8 November 2025 SEBI warned that digital gold products are neither securities nor regulated commodity derivatives. It pointed to gold ETFs and electronic gold receipts as the regulated way to hold gold electronically.
Is a gold ETF better than physical gold? It is cheaper to buy and sell and carries no GST, making charge or purity risk. It charges a yearly fee instead. Nippon India ETF Gold BeES trailed the domestic gold price by about 1.4 points a year over five years. It cannot be worn, and it needs a demat account.
How is gold taxed when I sell it? Jewellery, coins and digital gold held for more than 24 months are taxed at 12.5% on the gain, with no indexation. Gold ETFs and gold bonds sold on the exchange become long-term after 12 months. A shorter holding is taxed at your slab rate.
Prices move every day; check IBJA or your jeweller's rate on the day you buy. Making charges, premiums and buy-back terms differ between sellers, and the figures above are assumptions. Educational explanation only — not investment, tax or legal advice, and not a recommendation to buy or sell gold in any form.
Sources
The rules and figures in this article can be checked against these official sources.
- Daily gold and silver rates India Bullion and Jewellers Association
- Premature redemption price for SGB 2019-20 Series V, due on 15 October 2026 Reserve Bank of India
- Premature redemption price for SGB 2019-20 Series V, due on 15 October 2025 Reserve Bank of India
- Premature redemption price for SGB 2020-21 Series VII, due on 20 October 2025 Reserve Bank of India
- Sovereign Gold Bond Scheme 2019-20 Series V: issue price, 4 October 2019 Reserve Bank of India
- Sovereign Gold Bond Scheme 2023-24 Series IV opens for subscription, 9 February 2024 Ministry of Finance, through the Press Information Bureau
- Sovereign Gold Bond Scheme: questions and answers on interest, tenor, early redemption and trading Reserve Bank of India
- Nippon India ETF Gold BeES: returns against the domestic price of gold Nippon India Mutual Fund
- Caution to the public on dealing in digital gold, 8 November 2025 Securities and Exchange Board of India
- Mandatory hallmarking: districts and caratages covered, 13 March 2026 Ministry of Consumer Affairs, through the Press Information Bureau
- Mandatory hallmarking orders and the list of districts Bureau of Indian Standards
- GST rates on goods and services CBIC
- Income-tax Act, 2025, section 70: transactions not regarded as transfer Income Tax Department
- Income-tax Act, 2025, section 2: definitions, including the holding period of a capital asset Income Tax Department
- Income-tax Act, 2025, section 197: tax on long-term capital gains Income Tax Department
- Income-tax Act, 2025, section 73: cost of an asset received by gift or inheritance Income Tax Department
- Income-tax Rules, 2026, rule 159: transactions in which PAN must be quoted Income Tax Department
- Income-tax Act, 2025, section 186: receipts of ₹2 lakh or more in cash Income Tax Department
- FOMC statement, 16 September 2026 US Federal Reserve
- H.15 Selected Interest Rates (daily) US Federal Reserve
- Consumer Price Index, September 2026 US Bureau of Labor Statistics
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