There are more ways than ever to own gold in India — but they differ sharply in cost, regulation and tax. Here is how they compare in 2026.
Key takeaways
- Gold ETFs and gold mutual funds are SEBI-regulated, low-cost and easy to trade.
- New Sovereign Gold Bonds are not being issued; existing SGBs trade on exchanges, and Budget 2026 limited the tax-free maturity benefit to original subscribers.
- Digital gold is unregulated — SEBI cautioned investors in November 2025.
- Jewellery is for consumption; making charges make it a poor investment.
Comparison
| Option | Costs | Regulation | Liquidity | Long-term tax |
|---|---|---|---|---|
| Jewellery | Making 3–25% + 3% GST | BIS hallmark | Jeweller buy-back | 12.5% after 24 m |
| Coins/bars | Premium + 3% GST | BIS hallmark | Dealers | 12.5% after 24 m |
| Gold ETF | Expense ≈0.3–1% | SEBI | Exchange, real time | 12.5% after 12 m |
| Gold MF (FoF) | ETF + FoF costs | SEBI | T+2/3 | 12.5% after 24 m |
| SGB (secondary) | None; 2.5% interest | RBI/GoI | Exchange (thin) | Taxable for secondary buyers |
| Digital gold | 3% GST + spread | Unregulated | Platform | 12.5% after 24 m |
Which suits you?
- Long-term investor with demat: Gold ETF.
- SIP without demat: Gold mutual fund.
- Already hold SGBs from original issue: hold till maturity for tax-free redemption.
- Wedding or gifting: hallmarked jewellery or coins.
How much gold?
Many planners suggest 5–15% of a portfolio in gold for diversification.
Your action checklist
- Check today's city rate for your purity before visiting a jeweller.
- Insist on BIS hallmark with HUID and verify it on the BIS CARE app.
- Get making charges, stone weight and GST itemised on the invoice.
- For investment, prefer regulated paper options (ETF, gold/silver funds).
- Keep invoices for capital-gains calculation when you sell.
FAQs
Can I still buy SGBs?
Only existing series on NSE/BSE; no new tranches are being issued.
Is digital gold safe?
It is backed by vaulted gold but outside SEBI/RBI regulation.
More on the gold rate hub and gold ETF guide.
