A plain comparison of the common ways people in India own gold: the costs, how easy each is to sell, and who looks after it.
Gold doesn't have to mean jewellery. Indians today can own gold in several forms, each with different costs and trade-offs. This page compares them in plain words. It is general information, not investment advice; for decisions about your money, speak to a registered financial adviser.
The quick comparison
| Form | Extra costs | Selling later | Who keeps it safe |
|---|---|---|---|
| Jewellery | Making charges, wastage, 3% GST | Making charges are lost; shop deductions | You (home or bank locker) |
| Coins and bars | Small making charge, 3% GST | Sell or exchange at jewellers; many banks sell but don't buy back | You |
| Digital gold (apps) | Price spread between buying and selling, 3% GST | Sell on the app; delivery as coins possible for a fee | The provider's vault |
| Gold ETFs and gold mutual funds | Yearly fund charges; brokerage for ETFs | Sell on a stock exchange or to the fund | The fund (regulated by SEBI) |
Jewellery
The most loved form: you can wear it, and it carries family and cultural value. But it is the most expensive way to hold gold as savings, because making charges are not returned when you sell. Always buy hallmarked pieces (how to check).
Coins and bars
Usually 24K (999 or 995 purity), with much lower making charges than jewellery. They come sealed with a purity certificate from banks, jewellers and refiners. Keep the packaging and bill. Note that many banks sell coins but do not buy them back, so you'd sell to a jeweller.
Digital gold
Apps and websites let you buy gold in small amounts, even ₹10, which is stored in a vault by the provider. You can sell it on the app or ask for delivery as coins. Things to know:
- It is not regulated by SEBI or the RBI, so you rely on the provider and its vault and trustee arrangements. In November 2025 SEBI publicly cautioned investors that digital gold sold by online platforms is outside its regulation, and pointed to regulated options such as gold ETFs and Electronic Gold Receipts.
- The buying price is usually higher than the selling price at the same moment (the "spread"), plus GST.
- Some providers limit how long you can hold gold before you must sell or take delivery.
Gold ETFs and gold mutual funds
A gold ETF is a fund that holds physical gold and trades on the stock exchange like a share. You need a demat and trading account. A gold mutual fund invests in gold ETFs and can be bought without a demat account, including through monthly SIPs. Both are regulated by SEBI and have small yearly charges.
Sovereign Gold Bonds
These were bonds issued by the Reserve Bank of India on behalf of the government, linked to the gold price and paying a small yearly interest. No new series has been issued since February 2024, and after the February 2025 budget the government said the scheme would not continue for new buyers. Bonds already issued keep running until they mature, and they can be bought and sold on stock exchanges.
Taxes
Each form is taxed differently when you sell it, and the rules have changed in recent budgets. Check the current rules or ask a tax professional before selling a large amount.
Choosing
- For wearing and family occasions: jewellery.
- For holding physical gold with low making cost: coins or bars.
- For small, regular amounts without storage worries: regulated funds are one option many people look at.
Whatever you choose, keep records and buy from registered, trusted sellers.
Questions to ask yourself first
- Will I wear it? If yes, jewellery is the only option that gives you that.
- How long will I keep it? Making charges and price spreads hurt most when you sell soon after buying.
- How will I keep it safe? Physical gold needs a safe place; funds and digital forms don't, but you depend on the provider.
- How easily can I sell it? Think about where you would sell, and how quickly you'd get the money.
- What are all the costs? Add GST, making charges, spreads, storage and yearly fees.
This guide is general information for buyers. Rules and tax rates can change; check with your jeweller, bank or a qualified adviser before big decisions.