Dhanteras falls on Friday, 6 November 2026, and many families will buy gold that day. The real choice is not only how much to buy, but in what form.
A coin for the puja, a Gold ETF in your demat account and digital gold on an app look similar on the surface. Their costs, tax treatment and regulatory protection are very different. This guide compares them using official sources and dated rates.
Quick answer
| Form | Best for | Main cost | Regulator | Long term after |
|---|---|---|---|---|
| Physical gold (jewellery, coins) | Puja, gifting, wearing | Making charges plus 3% GST | BIS for hallmarking | More than 24 months |
| Gold ETF | Investing through a demat account | Annual expense ratio, brokerage | SEBI | More than 12 months (listed) |
| Gold mutual fund (fund of funds) | SIP investing without a demat account | Expense ratio of the fund and the underlying ETF | SEBI | More than 24 months |
| Digital gold | Very small purchases | GST and the buy and sell price gap | Outside SEBI’s purview | More than 24 months |
| Sovereign Gold Bond (existing holdings only) | Long holding to maturity | Market price on the exchange | RBI, Government of India | See the SGB section |
Tax holding periods are explained in the tax section below.
When is Dhanteras 2026?
Dhanteras is on Friday, 6 November 2026, with the Dhanteras puja muhurat from 6:02 PM to 7:57 PM in New Delhi. Trayodashi tithi begins at 10:30 AM on 6 November and ends at 10:47 AM on 7 November, so check Drik Panchang for your city’s timings.
Physical gold: jewellery and coins
Physical gold is the traditional Dhanteras purchase. It carries emotional value, but it is also the costliest form to buy and sell.
What you actually pay
You pay for the gold, a making charge and GST. According to the GST Council’s sectoral FAQ on gems and jewellery, GST is payable at 3% of the total transaction value of jewellery, whether the making charge is shown separately or not. So the 3% applies to the gold value plus the making charge.
Making charges are set by each jeweller and are usually higher for intricate designs. Coins and bars usually carry lower making charges than jewellery. Always ask for an itemised bill.
How to check the hallmark (HUID)
Since 1 April 2023, BIS registered jewellers may sell only hallmarked jewellery carrying a six digit HUID in the notified districts, according to the Ministry of Consumer Affairs. A valid hallmark has three marks: the BIS logo, the purity grade (such as 22K916) and the HUID code.
You can verify any HUID using the “Verify HUID” feature in the free BIS Care app. If you doubt the purity, a BIS recognised assaying and hallmarking centre can test it for a fee.
Selling physical gold
When you sell or exchange jewellery, the buyer tests purity and usually deducts a part of the value. Making charges are generally not recovered. Keep your invoice, because it supports your purchase cost for tax purposes.
Gold ETF in one minute
A Gold ETF is a mutual fund unit traded on the stock exchange, backed by physical gold of high purity, and regulated by SEBI. You need a demat and trading account, and you pay an annual expense ratio instead of making charges. Expense ratios differ by scheme and change over time, so check the current figure in the scheme’s latest factsheet on the AMC website. Read our full Gold ETF guide for how to buy, and see the Gold ETF guide’s section on allocation before deciding how much to hold.
If you do not have a demat account, a gold mutual fund (fund of funds) invests in Gold ETFs and allows SIPs. Browse our mutual fund articles for more.
Digital gold
Digital gold lets you buy small amounts of gold online, which the seller stores in a vault on your behalf. It is easy to use, but you should understand its regulatory status first.
What SEBI said
On 8 November 2025, SEBI issued a press release cautioning investors about digital gold. SEBI said such products are “neither notified as securities nor regulated as commodity derivatives. They operate entirely outside the purview of SEBI.”
SEBI added that these products “may expose investors to counterparty and operational risks” and that none of the investor protection mechanisms under the securities market are available for them. This does not mean digital gold is illegal. It means SEBI does not regulate it, so you depend on the seller and its vault partner.
Costs to check
Gold purchases attract 3% GST, which applies to digital gold too as it is a sale of gold. Platforms also show different buy and sell prices, and this gap is a cost to you. Storage fees, holding limits and delivery or making charges for converting to coins vary by platform, so read the terms before you buy.
SEBI regulated alternatives
In the same press release, SEBI listed regulated options for gold investing: Gold ETFs offered by mutual funds, Electronic Gold Receipts traded on stock exchanges, and exchange traded commodity derivative contracts.
Sovereign Gold Bonds
Sovereign Gold Bonds (SGBs) are issued by the RBI on behalf of the Government of India. You can still buy existing SGBs on the stock exchange, but not from a new RBI issue at the moment, so this is not a Dhanteras purchase in the usual sense. The RBI continues to announce redemption prices. For example, it set ₹14,425 per unit for the final redemption of SGB 2018-19 Series II on 23 October 2026.
Tax rules for SGBs changed from 1 April 2026. As proposed in the Finance Bill 2026, the capital gains exemption on redemption applies only if you subscribed at the original issue and held the bond continuously until maturity. If you buy an SGB on the exchange, gains on maturity are not exempt.
Worked example: ₹1 lakh on Dhanteras (illustrative)
This example uses IBJA rates published on 23 October 2026 (PM session), before GST and making charges: ₹1,41,630 per 10 grams for 24 carat (999) and ₹1,29,733 per 10 grams for 22 carat (916). It assumes a making charge of 10% of the gold value for jewellery. This is an assumption, not a market rate. Your actual costs will differ.
| 22 carat jewellery | Digital gold (24 carat) | Gold ETF | |
|---|---|---|---|
| Amount spent | ₹1,00,000 | ₹1,00,000 | ₹1,00,000 |
| Making charge (assumed 10%) | ₹8,826 | Nil | Nil |
| GST at 3% | ₹2,913 | ₹2,913 | Nil on units |
| Value of gold bought | ₹88,261 | ₹97,087 | About ₹1,00,000, less brokerage |
| Approximate gold | 6.80 grams (22 carat) | 6.86 grams (24 carat) | Units tracking about 7.06 grams of 24 carat gold |
| Ongoing cost | Safe storage | Platform terms and price gap | Annual expense ratio |
The example ignores the digital gold price gap, brokerage, and the jeweller’s own margin over the IBJA rate.
How gold is taxed
See more in our tax articles.
| Form | Long term if held | Long term tax | Short term tax |
|---|---|---|---|
| Physical gold | More than 24 months | 12.5% without indexation | Slab rate |
| Digital gold | More than 24 months | 12.5% without indexation | Slab rate |
| Gold ETF (listed) | More than 12 months | 12.5% without indexation | Slab rate |
| Gold mutual fund (FoF) | More than 24 months | 12.5% without indexation | Slab rate |
| SGB on maturity, original subscriber | Not applicable | Exempt | Not applicable |
| SGB bought on the exchange | More than 12 months (listed) | 12.5% | Slab rate |
SGB interest is taxable at your slab rate. Cess and surcharge apply as per your income.
A simple way to decide
Scenario 1: You want gold for the puja and a small investment. Buy a small hallmarked coin for the ritual. For the investment part, consider a regulated route and plan it with our SIP calculator.
Scenario 2: You are saving for a goal five or more years away. Decide your gold share first and then a monthly amount. Our Goal SIP calculator helps you work out how much to invest. More tools are on our calculators page, and more guides are in Finance Tips.
Expert take
“Buy the coin for the puja, but let your goals decide the rest. Gold is a portfolio stabiliser, not a return engine. Before you buy more, write down why you want it and when you may need the money. Compare the full cost, including GST, making charges and what you lose when you sell. Then choose the form whose costs, rules and tax treatment fit that goal, and review it once a year.”
Ashutosh Joshi
Frequently asked questions
When is Dhanteras in 2026?
Dhanteras is on Friday, 6 November 2026. The puja muhurat in New Delhi is from 6:02 PM to 7:57 PM, according to Drik Panchang. Trayodashi tithi runs from 10:30 AM on 6 November to 10:47 AM on 7 November. Timings vary by city.
Is digital gold regulated by SEBI?
No. In its press release of 8 November 2025, SEBI said digital gold products are neither notified as securities nor regulated as commodity derivatives, and operate entirely outside its purview. Digital gold is not illegal, but SEBI’s investor protection mechanisms do not apply. SEBI listed Gold ETFs, Electronic Gold Receipts and exchange traded commodity derivatives as regulated options.
Is a Gold ETF better than physical gold?
It depends on your purpose. A Gold ETF has no making charges or purity worries and is regulated by SEBI, but needs a demat account and has an annual expense ratio. Physical gold suits rituals, gifting and wearing, but costs more to buy and sell.
How much GST is charged on gold jewellery?
GST is 3% of the total transaction value of jewellery, according to the GST Council’s FAQ. This includes the making charge, whether it is shown separately on the bill or not. Always ask your jeweller for an itemised GST invoice.
How do I check if my gold is hallmarked?
Look for three marks: the BIS logo, the purity grade such as 22K916, and a six digit HUID code. Enter the HUID in the “Verify HUID” option of the free BIS Care app to check the details.
Can I buy Sovereign Gold Bonds this Dhanteras?
You can buy existing SGBs on the stock exchange, not from a new RBI issue. From 1 April 2026, the capital gains exemption on maturity applies only to original subscribers who hold until maturity, so exchange buyers do not get it.
Sources
SEBI press release No. 70/2025 (8 November 2025); GST Council sectoral FAQ on gems and jewellery; Ministry of Consumer Affairs press release on HUID (30 March 2023, PIB); RBI press releases on SGB redemption (16 and 22 October 2026); IBJA rates (23 October 2026); Memorandum to the Finance (No. 2) Bill, 2024 and Finance Bill, 2026 (indiabudget.gov.in); Drik Panchang. All accessed 25 October 2026.
Disclaimer: This article is educational only, not investment advice. We do not sell gold products. Rates, tax rules and regulations change, so verify them before you act.
Last updated: 25 October 2026, IST
