Silver vs Gold for Dhanteras: ETF, Coin or Digital Silver, and the Tax on Each
Silver has run ahead of gold: up 55.8% in the year to 30 September against 28.6% for gold, by the domestic prices the ETFs track. It has also fallen harder this month, 5.3% since 9 October against 2.1%. On IBJA's rate of 19 October, ₹1 lakh buys about 463 grams of silver or 6.6 grams of gold after GST. Here is what each form costs to get in and out of, coin, articles, ETF or digital, why a 925 diya holds less silver than its weight, and the tax on each when you sell.
On Dhanteras, silver is the metal most families actually buy: a coin for the puja, a diya, a pair of anklets. This year it is also the metal that has moved the most. By the domestic prices the ETFs track, silver rose 55.8% in the year to 30 September, almost twice gold's 28.6%, and this month it has fallen faster too. Here is where both prices stand, what ₹1 lakh really buys in each form of silver, how that compares with gold, and the tax on each when you sell.
Written on 20 October 2026. Prices are IBJA's rates, before GST, up to Monday 19 October (no rate is published for Dussehra). One-year and three-year returns are from Nippon India Mutual Fund's pages for its Silver ETF and Gold BeES, to 30 September 2026. Hallmarking is from the Ministry of Consumer Affairs' release of 4 December 2025. Tax is under the Income-tax Act, 2025. Coin premiums, making charges and buy-back deductions are this article's assumptions, and the calculator lets you change them. This is a comparison, not advice to buy either metal.
₹2,09,467 — a kilo of 999 silver, IBJA, 19 October · ₹1,46,406 — 10 grams of 999 gold, the same day · 70 — kilos of silver one kilo of gold buys · +55.8% — silver in the year to 30 September; gold +28.6% · −5.3% — silver since 9 October; gold −2.1% · 3% — GST on both, on the metal and the making charge.
Silver vs gold: where the prices stand
| IBJA rate, before GST | Gold 999, 10 g | Silver 999, 1 kg |
|---|---|---|
| Friday 9 October | ₹1,49,614 | ₹2,21,170 |
| Wednesday 14 October | ₹1,46,345 | ₹2,14,392 |
| Thursday 15 October | ₹1,45,564 | ₹2,07,098 |
| Friday 16 October | ₹1,46,514 | ₹2,10,312 |
| Monday 19 October | ₹1,46,406 | ₹2,09,467 |
| Change since 9 October | −2.1% | −5.3% |
With 3% GST, that is about ₹216 a gram for silver and ₹15,080 a gram for gold. One kilo of gold is worth about 70 kilos of silver, the gold-to-silver ratio that bullion dealers watch.
The longer view comes from the benchmarks of the two oldest ETFs, which track the domestic price of each metal:
| To 30 September 2026 | Silver (domestic price) | Gold (domestic price) |
|---|---|---|
| One year | +55.80% | +28.63% |
| Three years, a year | +45.63% | +36.77% |
| ₹10,000 a year ago is now | ₹15,580 | ₹12,863 |
The pattern holds both ways. Silver rose almost twice as much as gold over the year, and between 9 and 19 October it fell 5.3% against gold's 2.1%; the Nippon India Silver ETF's NAV fell 5.7% between 30 September and 19 October. A buyer who wants a steadier metal has gold; one who accepts bigger swings has silver. Neither tells you where the price goes next.
What ₹1 lakh buys: silver vs gold, by form
The price per gram is the same whichever form you buy. What changes is what you pay on top and what you lose when you sell. At IBJA's 19 October rate, ₹1 lakh is worth 477 grams of 999 silver or 6.8 grams of 999 gold before GST. Sold back the same day, on this article's assumptions:
| ₹1 lakh in | Silver: you get | Silver: fetches back | Gold: fetches back | Rise needed to break even (silver) |
|---|---|---|---|---|
| ETF (0.1% dealing cost each way) | 477 g | ₹99,800 | ₹99,800 | 0.2% |
| Digital (3% GST, app spread not counted) | 463 g | ₹97,087 | ₹97,087 | 3.0% |
| Coin or bar (silver: 5% premium, 2% buy-back deduction; gold: 2% and 1%) | 441 g | ₹90,615 | ₹94,232 | 10.4% |
| Articles or jewellery (silver: 10% making, 5% deduction; gold: 14% and 4%) | 421 g | ₹83,848 | ₹81,758 | 19.3% |
The gold figures are the same as in this site's Dhanteras gold guide. Silver coins usually carry a bigger premium in percentage terms: minting and packing a coin costs much the same whatever the metal, and a silver coin is worth far less. Ask your seller for the real figures and put them in the calculator below.
A calculator loads here when JavaScript is on. The table above has the same arithmetic for ₹1 lakh: a silver ETF fetches back about ₹99,800 the same day, a coin about ₹90,600 and articles about ₹83,800 on the stated assumptions.
Silver coins and bars: check the purity and the buy-back
A silver coin or bar is sold as 999 or 990 fine. You pay the day's rate, a premium for minting and packing, and 3% GST on the total. When you sell, a jeweller or refiner tests it and pays the rate less a deduction. Three checks before you pay:
- The purity mark. A coin should state its grade and come with the seller's certificate. The government's figures show 99% of hallmarked silver coins are 990, which holds 1% less silver than the 999 rate assumes. Silver hallmarking by BIS is voluntary, so many coins carry only the seller's own mark.
- The HUID, if it is hallmarked. The government's update of 4 December 2025 says that while silver hallmarking stays voluntary, any silver article that is hallmarked must carry a HUID, a six-character code, alongside the BIS mark, the word SILVER and the grade. You can check it on the BIS CARE app. Over 17 lakh pieces were hallmarked with one in the first three months.
- Who buys it back. Banks that sell coins generally do not buy them back. Keep a coin sealed with its certificate; it is easier to sell close to the day's rate.
Silver articles, diyas and anklets: less silver than the weight
Most silver bought on Dhanteras is not 999 at all. The same government update says the 925 and 800 grades make up nearly 90% of all hallmarked silver, that anklets are the largest category, 90% of them in the 800 grade, and that silver diyas come next, almost all in 800 or 925. The grade is the share of silver in the piece:
- A 925 article is 92.5% silver. A 100-gram diya holds 92.5 grams of silver.
- An 800 article is 80% silver. A 100-gram pair of anklets holds 80 grams.
A jeweller buying the piece back pays for the silver in it, less a deduction, and nothing for the making charge or the GST. So an 800 anklet bought at the 999 rate plus making costs more again than the calculator shows. Before you buy an article as an investment, ask the grade and price it on the silver content. For a puja or a gift, the craft is the point, and that is a fair thing to pay for.
Silver ETFs: the cheapest way in and out
A silver ETF is a mutual fund that holds physical silver and trades on the stock exchange like a share. It needs a demat account. It carries no GST and no making charge, units are small, and the Nippon India Silver ETF's NAV was ₹197.65 on 19 October, about the price of a gram.
Over three years the gap was 2.0 points a year, 43.63% against 45.63%. Gold BeES trailed gold by about 1.5 points over the same year, 27.16% against 28.63%. The gap is the fund's yearly cost plus the cost of holding the metal; it is the fairest single number to compare silver ETFs on, and each fund house publishes it. A silver fund of funds invests in silver ETFs for buyers without a demat account, adds its own expense ratio, and is taxed as long-term only after 24 months.
Digital silver: easy to buy, outside SEBI's rules
Apps sell silver by the rupee, held in a partner's vault, as they sell digital gold. You pay 3% GST on the purchase and get no GST back on a sale, and the app sets its own buying and selling prices. SEBI's caution of 8 November 2025 named digital gold: such products are not notified as securities and are not regulated as commodity derivatives. Digital silver sold the same way is in the same position. The regulated ways to hold silver electronically are silver ETFs and exchange-traded silver contracts. Digital silver is taxed like physical silver when sold.
There is also no silver bond. Sovereign Gold Bonds were only ever for gold, and no new gold bonds have been issued since February 2024.
The tax on silver and gold, form by form
| Form (silver or gold) | Long-term after | Long-term gain | Short-term gain | Bought on Dhanteras, 6 Nov 2026: long-term if sold after |
|---|---|---|---|---|
| Coins, bars, jewellery, articles | 24 months | 12.5% | Your slab rate | 6 Nov 2028 |
| Digital silver or gold | 24 months | 12.5% | Your slab rate | 6 Nov 2028 |
| Silver or gold ETF | 12 months | 12.5% | Your slab rate | 6 Nov 2027 |
| Silver or gold fund of funds | 24 months | 12.5% | Your slab rate | 6 Nov 2028 |
- No indexation, plus cess. The 12.5% is on the gain without inflation indexation, under section 197 of the Income-tax Act, 2025, with 4% cess on top.
- GST is a cost, not a deduction. The 3% you paid is part of what you paid, but it does not come back when you sell.
- Gifted silver keeps its history. Silver received as a gift or an inheritance takes the earlier owner's cost and holding period, under section 73, so a grandmother's silver is usually long-term.
Work out the tax on your own sale in the capital gains calculator. Gifts of silver at Diwali have their own rules, set out in how Diwali gifts and bonuses are taxed.
What each form is good for
| If you want | The form that fits | What to watch |
|---|---|---|
| Silver for the puja or a gift | A coin or an article | The grade (999, 925 or 800) and the making charge |
| The silver price, at the lowest cost | A silver ETF | A demat account; the fund's gap to silver |
| Small, regular amounts without demat | A silver fund of funds | Two layers of fees; 24 months to long-term |
| Convenience in an app | Digital silver | No SEBI oversight; the app's buy-sell gap |
| A steadier metal | Gold in any of these forms | It also rose less over the past year |
Before you buy on Dhanteras: a checklist
- Check the day's rate. IBJA publishes it before GST; a jeweller's rate should be close.
- Ask the grade of any article: 999, 925 or 800. Price it on the silver it holds.
- Ask the making charge and the buy-back deduction in writing, and put them in the calculator above.
- Look for the HUID on hallmarked pieces and check it on the BIS CARE app.
- Keep the bill. It is your cost for the tax when you sell, and the date starts the 24-month clock.
- Dhanteras is Friday 6 November, a normal banking day. The Diwali money calendar shows which days banks and markets are shut in your city.
Frequently Asked Questions
Is silver better than gold for Dhanteras 2026? Neither is better in general. Silver rose 55.8% in the year to 30 September against 28.6% for gold, and it has also fallen faster this month: 5.3% since 9 October against 2.1%. Silver suits a buyer who accepts bigger swings; gold has been the steadier of the two.
What is the silver rate today? IBJA's last rate before Dussehra, for Monday 19 October 2026, was ₹2,09,467 a kilo of 999 silver before GST, about ₹209 a gram, or ₹216 with 3% GST. No IBJA rate is published on 20 October, a holiday.
How much silver does ₹1 lakh buy? About 463 grams of 999 silver at IBJA's 19 October rate, after 3% GST. As a coin with a 5% premium it is about 441 grams; as articles with a 10% making charge, about 421 grams.
Is GST charged on silver? Yes, 3%, as on gold. It applies to the silver and to any making charge, and nothing is refunded when you sell.
Is silver hallmarking mandatory? No. The government's update of 4 December 2025 says silver hallmarking remains voluntary, but any silver article that is hallmarked must carry a HUID code.
How is a silver ETF taxed? As long-term after 12 months, at 12.5% plus cess on the gain, without indexation. Sold within 12 months, the gain is added to your income and taxed at your slab rate.
Is digital silver regulated? No. SEBI has said digital gold products are not securities and are not regulated by it, and digital silver sold the same way is no different. Silver ETFs and exchange-traded silver contracts are the regulated alternatives.
What is the gold-silver ratio now? About 70. At IBJA's 19 October rates, a kilo of 999 gold, ₹1,46,40,600, buys about 70 kilos of 999 silver at ₹2,09,467.
Prices as published by IBJA up to 19 October 2026; returns as published by Nippon India Mutual Fund to 30 September 2026. Past returns do not indicate future returns. Premiums, making charges and deductions differ from seller to seller. This is general information, not a recommendation to buy or sell silver, gold or any fund named here.
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
- Nippon India Silver ETF: returns against the domestic price of silver Nippon India Mutual Fund
- Nippon India ETF Gold BeES: returns against the domestic price of gold Nippon India Mutual Fund
- Update on mandatory HUID for silver jewellery, 4 December 2025 Ministry of Consumer Affairs, through the Press Information Bureau
- Caution to the public on dealing in digital gold, 8 November 2025 Securities and Exchange Board of India
- Income-tax Act, 2025, section 197: tax on long-term capital gains 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 73: cost of an asset received by gift or inheritance Income Tax Department