Updated for 2026 tax rules
Gold investing in India, without the sales pitch.
Sovereign Gold Bonds stopped accepting new money in 2024. Most comparison sites haven't caught up. Here's what's actually open to you now, what it really costs, and how it's taxed — in tables, not paragraphs.
Gold vs Nifty 50, indexed
Both set to 100 at FY15 — shows relative growth, not absolute price. RBI data.
Gold Nifty 50
Last checked: October 2026
Your five real options
Every row reflects current rules, not 2022-era blog copy. Tax figures assume you're not a first-time filer claiming special exemptions — check with a CA for your specific case, or see the full tax guide.
| Option | Availability | Min. investment | Real costs | Liquidity | Tax (as of 2026) | |
|---|---|---|---|---|---|---|
| Gold ETF | Open, buy via demat/broker | ~1 gram (1 unit) | Expense ratio ~0.4–0.8% p.a. + brokerage | High — sell on exchange any trading day | LTCG 12.5% after 12 months (no indexation); STCG at slab | Most practical for new investors |
| Gold mutual fund | Open, via any AMC / fund platform | ₹100–500 via SIP | Expense ratio ~0.5–1% p.a., slightly higher than ETF | High — redeem any business day at NAV | Same as Gold ETF (LTCG 12.5% after 12 months) | Best if you want SIP discipline |
| Digital gold | Open, via apps (Paytm, PhonePe, etc.) | ₹10–100 | Buy-sell spread ~2–3%, GST on purchase (3%) | Medium — app-dependent, some cap holding period | Treated as physical gold — LTCG after 3 years (36 months) | Not SEBI-regulated — check issuer |
| Physical gold | Open, jewellers/banks | Any amount | Making charges 5–25%, GST 3%, storage/insurance risk | Low — resale value hit, purity disputes | LTCG after 3 years (36 months), with indexation removed from 2024 | Highest real-world cost |
| Sovereign Gold Bond | Closed to new buyers since Feb 2024 — secondary market only | 1 gram (secondary market, variable price) | None if held — brokerage if bought/sold on exchange | Medium — tradeable on NSE/BSE, but less liquid than ETFs | Maturity exemption now only for original RBI subscribers (Budget 2026) | Legacy holders only — see explainer |
Not looking to invest, but need to borrow against gold you already own? See how gold loans work instead.
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