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News18
12 hours ago
- Business
- News18
Physical Gold Vs ETF: Pros, Cons, Taxability, Making Charges, Know All The Differences
Last Updated: Physical gold offers emotional value but comes with storage and resale challenges. Gold has always been a trusted investment in Indian households, especially in the form of jewellery, coins, or bars. But now, many investors are looking at digital options like Gold ETFs (Exchange Traded Funds). Both have their pros and cons, depending on your needs. Here's a simple comparison of physical gold and Gold ETFs. Why Do People Still Buy Physical Gold? Gold jewellery isn't just an investment in India; it holds cultural and emotional value. People buy it for weddings, festivals, and gifts. Over the last 10 to 15 years, physical gold has delivered strong returns of around 9–10 per cent per year, and even 12 per cent annually in the last decade, according to the India Bullion and Jewellers Association (IBJA) data. These returns have beaten several fixed-income investments. But Physical Gold Has Drawbacks Too – High making charges: Jewellery often comes with 15–25 per cent making charges, which are not recoverable on resale. – Storage issues: You need to store it safely, which can be stressful and costly. – Resale challenges: Selling gold jewellery can lead to deductions or lower prices, especially if you didn't buy it from the same jeweller. Gold ETFs are digital investments backed by real gold. They are traded on stock exchanges, just like shares. Launched in India in 2007, they let you invest in gold without worrying about storage or safety. ETFs closely follow gold prices and have given 8.5–9.5 per cent average annual returns over the past decade. Some funds have even matched or outperformed physical gold returns when held for 15 years. Benefits of Gold ETFs – Easy to buy or sell: You can buy or sell ETFs anytime through your demat account. – No storage hassle: No lockers or physical safety required. – Low cost: Expense ratios range from 0.3 per cent to 1 per cent, much lower than jewellery-making charges. – Better tax treatment: If held for over 3 years, ETFs are taxed at 20 per cent with indexation, reducing your tax outgo. Both physical gold and ETFs are taxed as long-term capital gains (LTCG) if held for over three years. But with ETFs, it is easier to track your investment and get proper value on sale. On the other hand, physical gold resale might involve hidden charges, and it is harder to prove the original cost in some cases. What should you choose? If you are looking for: – Convenience, transparency, and long-term growth, then go for Gold ETFs. – Sentimental value, gifting, or future use in weddings, then pick Physical gold may suit you better. Experts suggest putting 5–10 per cent of your portfolio into gold, and for most modern investors, a major part of that can be in digital formats like ETFs due to ease of use, tax efficiency, and liquidity. view comments First Published: News business Physical Gold Vs ETF: Pros, Cons, Taxability, Making Charges, Know All The Differences Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Time of India
5 days ago
- Business
- Time of India
Gold crosses Rs 1 lakh mark! But jewellers worry over sluggish sales - Here's why
Gold prices crossed the Rs 1 lakh per 10 grams mark on Wednesday, dampening sentiment among jewellers just ahead of the festive season. This is the first time in nearly two months that prices have breached this psychological barrier. The yellow metal has gained almost 2% this week, rising from Rs 98,791 on Monday to Rs 1,00,502 per 10 grams on Wednesday. Including the 3% GST, the effective consumer price now stands at Rs 1,03,507 per 10 grams. Jewellers fear the price surge may further dent demand during the upcoming high-consumption festive period starting with Raksha Bandhan. 'China is heavily buying gold. The Central Banks across the globe too are buying gold. Big investors are also purchasing gold. All these factors are driving the gold prices,' Surendra Mehta, national secretary of the India Bullion & Jewellers Association (IBJA), the apex industry body, told ET. The previous instance of gold reaching Rs 1 lakh per 10 gm occurred on April 22, following US-China trade tensions when the US implemented higher tariffs on China. Silver prices increased significantly, reaching Rs 1,15,500 per kg on Wednesday from Rs 1,11,000 per kg on Tuesday, representing a Rs 4,500 per kg increase in one day. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Filipinos should get this large benefit! Read More Undo Financial analysts attribute the rise in precious metals to a weakening dollar index and uncertainties surrounding US trade tariffs, which encourage safe-haven investments. The Indian currency experienced pressure after Nato's warning about secondary sanctions on Russian oil imports, contributing to increased local gold and silver prices. As India imports these precious metals, currency depreciation automatically affects prices. Suvankar Sen, managing director of jewellery chain Senco Gold, indicated that consumers are now choosing lightweight gold jewellery to accommodate their budgets. 'Volume-wise the drop will be 15%. If the price rise continues, then demand for 18 karat, 14 karat and 9 karat gold jewellery will increase,' he told the outlet. With the festive season starting next month from Raksha Bandhan and continuing through Diwali, gold demand is typically strong. However, this year, persistently high prices are dampening sentiment. According to ET, Dinesh Taluja, CFO of Reliance Retail, said the company's jewellery business has seen higher billing amounts due to rising gold prices, but the number of transactions has declined. 'The business is on steady growth, but obviously there is an impact on the significant increase in gold prices. In volume terms, the demand for gold has gone down,' he noted. The IBJA representative suggested that Raksha Bandhan jewellery sales will likely suffer as consumers resist the Rs 1 lakh price point. Faced with high prices, consumers are holding back on non-essential gold purchases and turning to more affordable alternatives like lightweight, lower-karat, silver, or studded jewellery. However, investment-driven buying continues, with customers showing interest in gold coins, bars, and plain chains, which carry lower making charges and are considered better value for long-term holding. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Hans India
6 days ago
- Business
- Hans India
Silver soars to record high, crosses Rs 1.14 lakh per kg mark
New Delhi: Silver prices continued their upward march, scaling a new all-time high and crossing the Rs1.14 lakh per kg mark. This significant rally comes amid strong global cues and steady demand in the domestic market. The price of silver increased by Rs1,028 to Rs1,14,493 per kilogram on Tuesday, up from Rs1,13,465 the day before, according to the India Bullion and Jewellers Association (IBJA). With this, silver has broken its previous record high of Rs1,13,867 per kg, set on July 14. The futures market is also reflecting the steep increase in silver prices. The silver contract for September 5, delivery on the Multi Commodity Exchange (MCX), increased by 0.39 per cent to Rs1,15,500 per kg, demonstrating traders' and investors' ongoing optimism. 'Looking ahead, US Manufacturing and Services PMI data will be closely tracked for direction. In the near term, gold is expected to remain range-bound with MCX support at Rs98,500 and resistance near Rs1,00,500,' said Jateen Trivedi of LKP Securities. Gold price also saw a significant increase. According to IBJA, the price of 24-carat gold rose by Rs612 to Rs99,508 per 10 grams on Tuesday from Rs98,896 the day before. Similarly, the price of 18-carat gold reached Rs74,631 per 10 grams, while that of 22-carat gold increased to Rs91,149 per 10 grams. Global trends are also contributing to the surge. On the Comex exchange, silver prices rose by 0.27 per cent to $39.44 per ounce, while gold saw a 0.26 per cent increase, trading at $3,415.20 per ounce. Analysts attribute the rising prices to persistent global economic uncertainties, increased industrial demand for silver, and renewed investor interest in precious metals as safe-haven assets.
Economic Times
6 days ago
- Business
- Economic Times
Gold price crosses Rs 1 lakh per 10 gm, dampens festive jewellery demand
Gold touched the Rs 1 lakh per 10 gm mark on Wednesday dampening the mood among jewellers who now fear a further dent in sales ahead of the crucial festive season. The prices have crossed this threshold after almost two months. ADVERTISEMENT The yellow metal has gained nearly 2% this week — climbing from Rs 98,791 per 10 gm on Monday to Rs 1,00,502 per 10 gm on Wednesday at the retail end. With a 3% goods & services tax, net consumer price is now Rs 1,03,507 per 10 gm. 'China is heavily buying gold. The Central Banks across the globe too are buying gold. Big investors are also purchasing gold. All these factors are driving the gold prices,' said Surendra Mehta, national secretary of the India Bullion & Jewellers Association (IBJA), the apex industry body. Prices of gold had last touched Rs 1 lakh per 10 gm on April 22, following the trade war between the US and China with the former announcing higher tariffs on too shot up to Rs 1,15,500 per kg on Wednesday from Rs 1,11,000 per kg on Tuesday, a surge of Rs 4,500 per kg in a single day. The precious metals are being boosted by lower dollar index and the US trade tariff uncertainty supporting safe-haven buying, analysts Indian rupee came under pressure following NATO's warning of secondary sanctions on Russian oil imports leading to an additional increase in gold and silver prices locally. India imports both the precious metals and if the rupee comes under pressure then prices go up automatically. ADVERTISEMENT Suvankar Sen, managing director of jewellery chain Senco Gold, said the price rise is forcing consumers to buy lightweight gold jewellery within their budget. 'Volume-wise the drop will be 15%. If the price rise continues, then demand for 18 karat, 14 karat and 9 karat gold jewellery will increase,' he said. The festive season, which starts next month with Raksha Bandhan and continues till Diwali in October, is one of the biggest consumption periods of gold, apart from the wedding season in winter. ADVERTISEMENT India's largest retailer Reliance Retail chief financial officer Dinesh Taluja told analysts last week that the substantial increase in gold prices may have increased bill values (for its jewellery business), but the number of bills have come down. 'The business is on steady growth, but obviously there is an impact on the significant increase in gold prices. In volume terms, the demand for gold has gone down,' he IBJA official said that jewellery sales in Raksha Bandhan will not be good as consumers are not able to accept the price of Rs 1 lakh. In the gold hub Zaveri Bazaar in Mumbai, footfalls have fallen significantly. 'Unless the price settles near Rs 93,000 - Rs 94,000 per 10 gm, demand will not see an uptick,' Mehta said. ADVERTISEMENT Persistently high gold prices have suppressed demand, prompting consumers to defer non-essential purchases and opt for more affordable alternatives such as lightweight, lower-karat, silver or studded Chacko, research head for India at World Gold Council, said the trend of exchanging old jewellery to manage costs continued to gain traction as per market reports. ADVERTISEMENT However, investment-oriented buying may continue, with a growing preference for gold bars, coins and plain gold chains (seen as quasi-investments), which are favoured for their lower fabrication charges. 'As per anecdotal reports, demand has been concentrated in lower-grammage coins, particularly those weighing less than 10gm,' Chacko said. (You can now subscribe to our ETMarkets WhatsApp channel)
Economic Times
6 days ago
- Business
- Economic Times
Gold crosses Rs 1 lakh per 10 gm, dampens festive jewellery demand
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Gold touched the Rs 1 lakh per 10 gm mark on Wednesday dampening the mood among jewellers who now fear a further dent in sales ahead of the crucial festive season. The prices have crossed this threshold after almost two yellow metal has gained nearly 2% this week — climbing from Rs 98,791 per 10 gm on Monday to Rs 1,00,502 per 10 gm on Wednesday at the retail end. With a 3% goods & services tax, net consumer price is now Rs 1,03,507 per 10 gm.'China is heavily buying gold. The Central Banks across the globe too are buying gold. Big investors are also purchasing gold. All these factors are driving the gold prices,' said Surendra Mehta, national secretary of the India Bullion & Jewellers Association (IBJA), the apex industry of gold had last touched Rs 1 lakh per 10 gm on April 22, following the trade war between the US and China with the former announcing higher tariffs on too shot up to Rs 1,15,500 per kg on Wednesday from Rs 1,11,000 per kg on Tuesday, a surge of Rs 4,500 per kg in a single day. The precious metals are being boosted by lower dollar index and the US trade tariff uncertainty supporting safe-haven buying, analysts Indian rupee came under pressure following NATO's warning of secondary sanctions on Russian oil imports leading to an additional increase in gold and silver prices locally. India imports both the precious metals and if the rupee comes under pressure then prices go up Sen, managing director of jewellery chain Senco Gold , said the price rise is forcing consumers to buy lightweight gold jewellery within their budget. 'Volume-wise the drop will be 15%. If the price rise continues, then demand for 18 karat, 14 karat and 9 karat gold jewellery will increase,' he festive season, which starts next month with Raksha Bandhan and continues till Diwali in October, is one of the biggest consumption periods of gold, apart from the wedding season in largest retailer Reliance Retail chief financial officer Dinesh Taluja told analysts last week that the substantial increase in gold prices may have increased bill values (for its jewellery business), but the number of bills have come down. 'The business is on steady growth, but obviously there is an impact on the significant increase in gold prices. In volume terms, the demand for gold has gone down,' he IBJA official said that jewellery sales in Raksha Bandhan will not be good as consumers are not able to accept the price of Rs 1 lakh. In the gold hub Zaveri Bazaar in Mumbai, footfalls have fallen significantly. 'Unless the price settles near Rs 93,000 - Rs 94,000 per 10 gm, demand will not see an uptick,' Mehta high gold prices have suppressed demand, prompting consumers to defer non-essential purchases and opt for more affordable alternatives such as lightweight, lower-karat, silver or studded Chacko, research head for India at World Gold Council, said the trend of exchanging old jewellery to manage costs continued to gain traction as per market investment-oriented buying may continue, with a growing preference for gold bars, coins and plain gold chains (seen as quasi-investments), which are favoured for their lower fabrication charges.'As per anecdotal reports, demand has been concentrated in lower-grammage coins, particularly those weighing less than 10gm,' Chacko said.
