All posts by : dgoldindia

While gold jewellery carries emotional and cultural value, it often makes for a weak investment choice. As one analysis points out, over decades jewellery has rarely matched the performance of equities. High making charges, wastage costs and low resale value typically eat into actual returns.

Beware of high premiums and limited liquidity

With gold at a record high recently (10 gramme of 24-carat crossing around Rs 1.20 lakh in October 2025), it becomes easy to pay too much. Experts caution that paying steep mark-ups, ignoring the cost of storage or buying large bars or ornaments that are hard to sell can hurt returns.

Keep your allocation modest

Gold is often used as a hedge, but relying on it as the main money-maker is risky. Analysts suggest that if gold forms more than 15-20 percent of your portfolio, you may be exposing yourself to downside if prices correct and you miss gains from other assets.

Choose the right form and understand costs

Not all gold options are equal. Physical gold means storage, security and purity issues. Alternative routes like gold ETFs, sovereign gold bonds (SGBs) or digital gold offer easier ownership but come with their own costs—tracking error, demat accounts or reduced liquidity. (Remember, there are no new SGB issues for 2025 announced by the Reserve Bank of India; however, existing SGB tranches from previous years are available for purchase on the secondary market.)

Avoid timing the market and track your reason

Many investors rush into gold when prices are rising and chase perfection rather than purpose. Specialists say you need to set clear goals—like diversification or inflation hedge—not treat gold like a quick-flip asset. Buying in instalments or via SIPs can reduce risk of catching the top.

Know the storage, tax and exit implications

Physical gold needs safe storage and adds cost. Digital or paper forms reduce that but still need transaction cost awareness. Also, unlike some assets that generate income, gold mainly depends on price appreciation, which can be volatile.

Bottom line

Gold remains a valuable part of a diversified portfolio—especially for inflation protection or shock coverage. But it will only serve you well if you buy wisely, keep allocation moderate, pick the right form, avoid overpaying and hold a clear exit plan. Done right, it’s a stabiliser; done poorly, it becomes a cost you live with.

Source: https://www.msn.com/en-in/money/topstories/gold-investing-made-simple-what-not-to-do/ar-AA1PUq9e?ocid=socialshare

Gold hallmarking is an official certification system that guarantees the purity and quality of gold jewellery and artefacts sold in India. Implemented by the Bureau of Indian Standards (BIS), India’s national standards organisation, hallmarking serves as a quality control mechanism to protect consumers from adulteration and ensure they receive the exact purity of gold they pay for.

The BIS hallmark, or Gold Hallmark, consists of three essential components:

• BIS Logo: A triangular symbol indicating the item has been tested at a BIS-recognised laboratory
• Purity Grade: The karat value (22K, 18K, 14K) with corresponding fineness (916, 750, 585)
• Six-Digit HUID: A unique Hallmark Unique Identification number for traceability

How to Get Gold Checked and Verified

To get gold hallmarked, jewellers must take their items to BIS-recognised Assaying & Hallmarking Centres (AHCs).

The hallmarking process involves three key stages

• Homogeneity Testing: All items from a batch are tested to ensure they meet BIS regulatory standards for consistency
• Purity Testing: Random samples undergo detailed examination using fire assay methods to determine exact gold content and fineness
• Marking: Items are individually marked using laser or press technology based on test results

Consumer Verification Methods

BIS CARE App Verification

Consumers can verify hallmarked gold using the official BIS CARE mobile application:

• Download the app from the Google Play Store or the Apple App Store
• Select the “Verify HUID” option
• Enter the 6-digit alphanumeric HUID number engraved on the jewellery
• The app displays complete details, including purity, jeweller registration, hallmarking centre information, and date of hallmarking

Physical Inspection

Look for these marks on gold jewellery:

• BIS triangular logo
• Purity marking (e.g., 22K916 for 22-karat gold)
• Jeweller’s identification mark
• Hallmarking centre’s identification code

Why Gold Hallmarking is Important?

• Hallmarking serves as the primary safeguard against gold adulteration and fraudulent practices.
• Hallmarked gold ensures maximum value during resale and loan transactions.
• Legal Compliance: Since June 16, 2021, hallmarking has been mandatory across India.

India’s Hallmarking Journey

April 11, 2000: India officially launched gold hallmarking, marking “the beginning of a new era of quality consciousness for Indian connoisseurs of gold.” The Bureau of Indian Standards was designated as the sole authority for hallmarking precious metals.

2005: Silver hallmarking was introduced under the IS 2112 standard

2019: The government announced plans to make hallmarking mandatory for gold jewellery nationwide.

Recent Developments

April 2023: Six-digit HUID became mandatory for all hallmarked gold, replacing the previous four-logo system.

July 2025: 9-karat gold was included under mandatory hallmarking, expanding coverage from 14K-24K to 9K-24K, making India’s hallmarking system more comprehensive.

Exemptions and Special Cases

Certain gold items are exempt from mandatory hallmarking:

• Kundan, Polki, and Jadau jewellery (traditional styles)
• Items weighing less than 2 grams
• Gold thread articles
• Gold bullion, bars, and investment coins
• Watches and fountain pens

For detachable jewellery components, each part weighing over 2 grams must be individually hallmarked with separate HUIDs.

Gold hallmarking represents India’s commitment to consumer protection and quality standardisation in the precious metals industry. By ensuring transparency, authenticity, and traceability, the system has transformed India’s gold market into a more trustworthy and regulated ecosystem, benefiting millions of consumers while supporting the country’s position as a major global gold market.

Source: https://www.msn.com/en-in/money/topstories/gold-hallmarking-explained-what-it-is-why-it-s-important-for-yellow-metal-buyers-how-to-check-purity-details/ar-AA1Ltb3D?ocid=socialshare

1. Checking the hallmark: Verify the government-approved hallmark, like the BIS hallmark in India.

2. Verifying the stamp: Look for stamps indicating gold purity, such as 916 or 22K.

3. Purchasing from authorised dealers: Buy from reputable jewellers or dealers to avoid counterfeit products.

4. Testing with acid: Use a gold testing kit to verify the metal’s authenticity.

5. Researching the seller: Check online reviews and ratings to ensure you’re buying from a trustworthy source.

Gold and silver have caught many investors off guard with their meteoric rise. Internationally, gold jumped from $1,900 in October 2023 to $3,860 today, while in India, prices surged from ₹61,000 to ₹1,17,290. In just one year, gold is up over 45%, and so far this year, it has gained more than 47%. This bull run has triggered FOMC—fear of missing out—as latecomers look to invest.

I want to start investing in gold and silver but am unsure of the best route. Physical coins involve making charges and 3% GST, while gold and silver ETFs raise questions on taxation, short-term and long-term capital gains, holding periods, and exit strategies. My horizon is 4–5 years, and I don’t want to time purchases only around festivals. Being new to ETFs, I’d appreciate simple, practical guidance on which option makes more sense for building wealth.

Advice by Akhil Rathi, Head – Financial Advisory at 1 Finance

Gold and silver have historically delivered strong returns and continue to hold importance as portfolio diversifiers in today’s global context. The key question is the purpose of your purchase. If it is for personal use, gifting, or cultural significance, physical coins or jewellery can be appropriate. But when the intent is pure investment over a 4–5 year horizon, physical gold becomes less efficient due to 3% GST on purchase, additional making charges on jewellery, and the hassles of storage and security.

For investors focused on wealth creation, ETFs emerge as the more practical route. They trade seamlessly on the stock exchange, eliminate purity or storage concerns, and involve lower overall costs. On taxation, gold and silver ETFs are classified as listed non-equity securities. If held for less than 12 months, gains are treated as short-term and taxed at your slab rate. Beyond 12 months, gains qualify as long-term and are taxed at a flat 12.5% without indexation—making them well-suited for medium-term horizons.

Over a 4–5 year period, ETFs typically deliver better efficiency than physical holdings. They allow you to bypass GST and making charges, offer liquidity at market price, and align neatly with favourable long-term taxation after the required holding period. A smart way to manage entry and exit is by accumulating gradually and redeeming in tranches, which helps balance volatility in commodity prices.

In short, while physical gold has its cultural and emotional appeal, ETFs provide the cleaner, more cost-effective, and tax-friendly path for wealth building and portfolio diversification over the medium to long term.

Investing in gold 

Gold’s recent surge has created a strong Fear of Missing Out (FOMO) among investors, with prices skyrocketing 100% in the last 24 months and 200% since 2020. Internationally, the price jumped from $1,900 to $3,860 since October 2023, with a similar rally in the Indian market.

While physical gold (jewelry) offers ownership satisfaction, it involves significant hidden costs, including 5-25% making charges and fees for conversion back to cash.

The best alternative is paper gold via Gold Exchange-Traded Funds (ETFs). The main benefit is the low cost of ownership: Gold ETFs have an expense ratio of around 0.8%, far below jewelry costs. ETFs offer a transparent and standard price, and eliminate concerns about purity, safety, and storage.

Reflecting this trend, net inflows into Indian Gold ETFs rose 108% between August 2023 and August 2025. You can buy ETFs through a Demat account, or use Gold Fund of Funds (FoFs) if you do not have one. When selecting an ETF, prioritize the fund with the highest trading volume.

Is It Legal to Store Gold at Home?

Yes. 100%.

There is no restriction on how much gold an individual can own or store at home in India, as long as you can explain the source.

But here’s the catch: if you’re ever under scrutiny by the Income Tax Department—during a raid or investigation—you must be able to justify the gold through receipts, inheritance documents, or declarations.

What Are the Income Tax Rules for Holding Gold at Home?

As per

CBDT (Central Board of Direct Taxes)

guidelines, here are the non-seizable limits during a tax raid, even if you don’t have proof of income:

• For Married Women: Up to 500 grams
• For Unmarried Women: Up to 250 grams
• For Men: Up to 100 grams

This means: you won’t be questioned or have this gold seized, even if you cannot produce receipts.

However, if you have more than these quantities and cannot explain how you acquired it, the excess may be seized or taxed.

Do I Need to Show Receipts for My Gold?

Ideally, yes. If you bought gold through a bank, jeweller, or digital platform, always store receipts securely.

But what about gold that came as inheritance or gifts?

For Inherited Gold:

• Keep a will copy, gift deed, or affidavit from the family member.
• You can also show wealth tax returns from parents or grandparents (if available).

For Gifted Gold:

• A gift deed from the giver is helpful.
• If the gift came during a marriage, wedding invitation cards or photos may support the claim.

What If You Have Unaccounted Gold?

If you’re found with a large quantity of gold without explanation, the tax authorities may:

• Seize it temporarily
• Issue a notice
• Demand proof of income or file charges for tax evasion

In such cases, gold could be treated as undisclosed income and taxed up to 77.25% (including penalties) under Section 115BBE of the Income Tax Act.

Is There a Limit to How Much Gold I Can Buy?

There’s no cap on how much gold you can buy. But:

• If you buy gold worth ₹2 lakh or more in cash, your PAN card is mandatory.
• Payments above ₹10,000 for jewellery should ideally be made through bank transfer or cheque to stay audit-safe.
• Always ask for a bill/invoice with your name.

Digital Gold, Sovereign Gold Bonds & Bank Lockers

If storing gold physically makes you anxious, here are safer legal options:

1. Bank Lockers

• Keep gold in a locker at your bank branch.
• Charges apply yearly.
• Authorities can inspect lockers only with a warrant.

2. Digital Gold

• Buy gold digitally from platforms like Paytm, PhonePe, or brokerage apps.
• Backed by actual gold.
• Easily tracked for legality.

3. Sovereign Gold Bonds (SGBs)

• Issued by the RBI.
• No storage hassle, earns interest, capital gains exempt if held till maturity.
• Fully legal and tax-friendly.