As Diwali 2025 approaches, gold remains a favored investment choice among Indians. With prices reaching record highs—₹1.29 lakh per 10 grams as of October 17, 2025 —buyers face a dilemma: Should they invest in gold coins and bars or opt for gold jewellery? Each option has its advantages and considerations.
Gold Coins and Bars: Investment-Focused Choice
Pros:
Higher Purity: Gold coins and bars typically offer 22K or 24K purity, ensuring a higher intrinsic value.
Lower Additional Costs: These forms of gold usually incur only the 3% GST, without additional making charges, making them more cost-effective for investors
Liquidity: They are easier to store and sell, providing flexibility for investors.
Resale Value: Their value is primarily based on the prevailing gold rate, ensuring transparent pricing.
Cons:
Storage and Safety: Physical storage requires secure facilities to prevent theft or loss.
No Aesthetic Value: Lacks the cultural and emotional appeal associated with jewellery.
Gold Jewellery: Tradition Meets Investment
Pros:
Cultural Significance: Gold jewellery holds deep cultural and emotional value, especially during festivals like Diwali.
Dual Purpose: Serves both as an adornment and a potential investment.
Gift Appeal: Highly favored for gifting during weddings and festivals.
Cons:
Lower Purity: Often 18K or 22K, which may not be ideal for investment purposes.
Additional Costs: Involves making charges (5%–25%) and 3% GST, increasing the overall cost
Resale Challenges: Resale value can be affected by design, brand, and market demand.
Market Trends and Consumer Behavior
During Dhanteras 2025, there was a noticeable shift in consumer preferences. While jewellery sales reached ₹85,000 crore and were projected to surpass ₹1 lakh crore by Diwali many buyers opted for gold coins and bars due to the high prices of gold jewellery. This trend indicates a more investment-oriented approach among consumers.
Conclusion
For those prioritizing investment returns and cost-effectiveness, gold coins and bars are the preferred choice this Diwali. They offer higher purity, lower additional costs, and better liquidity. However, if cultural significance and gifting are paramount, gold jewellery remains a cherished option. Ultimately, the decision should align with individual financial goals and preferences.
FAQs
Q1: Which is better for investment – gold coins/bars or jewellery?
Gold coins and bars are better for pure investment due to higher purity, lower making charges, and better resale value. Jewellery is ideal if cultural significance and gifting are important.
Q2: What purity of gold is ideal for investment?
24K or 22K gold is considered ideal for investment. Coins and bars usually come in these purities, whereas jewellery may have lower purity.
Q3: How do making charges affect jewellery investment?
Jewellery involves making charges of 5–25%, plus GST, which reduces its investment value compared to coins or bars.
Q4: Can gold jewellery be liquidated easily?
Jewellery resale depends on design, brand, and demand, so it may fetch less than its actual gold value. Coins and bars have transparent market pricing and are easier to sell.
Q5: Is it safe to store gold coins and bars at home?
While storing at home is possible, it’s recommended to use bank lockers or secure storage due to theft risks.
Published on : 20th October
Published by : SMITA
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