Neutral impactCommodity
Dhanteras, Diwali 2026 shopping guide: How do the costs of investing in gold ETFs differ from buying gold jewellery?
Mint 19 min ago·5 Nov 2026, 9:27 am
As the festive season approaches, investors are weighing the pros and cons of buying gold through Exchange Traded Funds (ETFs) versus traditional jewellery. Gold ETFs are units of gold traded on stock exchanges, while jewellery involves buying physical metal with added manufacturing costs. The primary difference lies in the price you pay; ETFs typically track the market price of gold, whereas jewellery prices include a premium over the spot rate. This premium covers the making charges, which vary significantly based on the design and craftsmanship, and is subject to Goods and Services Tax (GST). In contrast, ETFs have a lower entry cost, usually involving a small brokerage fee and an annual expense ratio, but they do not offer the tangible asset or resale value associated with jewellery.
For investors, the choice depends on whether the goal is long-term wealth preservation or a tangible asset for gifting. ETFs are more liquid and cost-effective for pure investment, as you avoid making charges and the associated GST. However, jewellery holds emotional and cultural value, making it a preferred choice for festivals like Dhanteras. Investors should watch out for the 'making charges' percentage, which can vary widely, and compare the 'buyback' rates offered by jewellers versus the current market price for ETFs. Ultimately, ETFs are a more economical option for those seeking exposure to gold without the premium of physical assets.
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