Dhanteras gold buying checklist: 7 things to check before purchasing jewellery, digital gold or ETFs
With gold prices rising 45% year-on-year in Q3 2026, Dhanteras buyers face a crucial choice between jewellery, digital gold and ETFs. Experts advise comparing costs, purity, taxation, liquidity and regulatory safeguards before investing, as each option serves different financial goals.
- Nov 4, 2026,
- Updated Nov 4, 2026 2:24 PM IST
Buying gold during Dhanteras is a longstanding Indian tradition, but rising prices and expanding investment options are changing how consumers approach purchases. From jewellery and coins to digital gold and exchange-traded funds (ETFs), buyers now have several alternatives, each carrying different costs, risks and liquidity considerations.
According to the World Gold Council's Gold Demand Trends: India Focus Q3 2026 report, India's gold demand rose 24% quarter-on-quarter to approximately 162 tonnes during July-September, although volumes declined 29% year-on-year. Domestic gold prices averaged Rs 1,48,891 per 10 grams, up 45% from a year earlier.
Jewellery demand increased 33% sequentially to nearly 100 tonnes, while gold ETF demand climbed to 5.3 tonnes from 3.6 tonnes in the previous quarter.
With gold prices remaining elevated, experts suggest checking seven factors before making a purchase.
1. Identify your purpose for buying gold
The first step is determining whether gold is intended for wearing, gifting, savings or long-term investment.
Experts said jewellery and coins are suitable for traditional purchases, while gold ETFs may be more appropriate for investors seeking exposure to gold prices without physical ownership.
MUST READ: Dhanteras 2026: PhonePe announces 2% cashback on 24k gold, here's how to avail it
2. Compare making charges and investment costs
Jewellery buyers should consider making charges, wastage charges and GST, which increase the overall purchase cost.
Digital gold platforms may impose buy-sell spreads and other charges. Gold ETFs involve expense ratios and potentially brokerage fees.
Comparing these costs is essential because they can significantly influence investment returns.
3. Verify purity and storage arrangements
Consumers purchasing jewellery or coins should check BIS hallmarking, purity certification and the Hallmark Unique Identification (HUID) number wherever applicable.
For digital gold, investors should examine how the underlying physical gold is stored, whether independent audits are conducted and what happens if the platform encounters financial difficulties.
Gold ETFs operate under SEBI's mutual fund regulatory framework.
ALSO READ: Gold jewellery gets costlier this Diwali: Hallmarking charges jump 67% — what buyers must know
4. Understand digital gold risks
Digital gold allows investors to purchase fractional quantities through online platforms without requiring a demat account.
According to the World Gold Council, gross digital gold purchases increased 76% to 16.3 tonnes during January-September 2026, compared with 9.2 tonnes in the corresponding period last year.
However, digital gold does not operate under a dedicated SEBI regulatory framework. Experts suggest examining provider credibility, custody arrangements and redemption conditions before investing.
5. Check liquidity and redemption rules
Physical gold can generally be sold or exchanged, although jewellers may impose deductions depending on their buyback policies.
Digital gold liquidity depends on platform terms, while gold ETFs can be traded on stock exchanges during market hours.
Investors should evaluate transaction costs, redemption timelines and potential restrictions before choosing an option.
6. Understand taxation before investing
Tax treatment varies across physical gold, digital gold and ETFs.
Jewellery and digital gold purchases generally attract GST, while capital gains taxation depends on the investment format and holding period.
Investors should compare post-tax returns rather than focusing exclusively on price appreciation.
7. Match purchases with financial goals
The World Gold Council's consumer survey found that 77% of respondents were considering lower-purity jewellery, while 76% were considering exchanging old gold to finance new purchases.
The survey also showed that 39% intended to restrict purchases to festivals, auspicious occasions or promotional offers, reflecting greater price sensitivity.
Experts said investors should avoid making decisions based solely on festive sentiment or short-term price movements.
For long-term portfolio diversification, regulated gold ETFs may offer a suitable investment route. Jewellery remains relevant for personal use and gifting, while digital gold provides convenience for small-ticket purchases.
Ultimately, buyers should evaluate affordability, taxation, liquidity and investment objectives before deciding how much gold to purchase.
MUST SEE THIS: Indians spend ₹2.42 lakh crore on gold despite 29% crash in demand: What's driving the paradox?
Buying gold during Dhanteras is a longstanding Indian tradition, but rising prices and expanding investment options are changing how consumers approach purchases. From jewellery and coins to digital gold and exchange-traded funds (ETFs), buyers now have several alternatives, each carrying different costs, risks and liquidity considerations.
According to the World Gold Council's Gold Demand Trends: India Focus Q3 2026 report, India's gold demand rose 24% quarter-on-quarter to approximately 162 tonnes during July-September, although volumes declined 29% year-on-year. Domestic gold prices averaged Rs 1,48,891 per 10 grams, up 45% from a year earlier.
Jewellery demand increased 33% sequentially to nearly 100 tonnes, while gold ETF demand climbed to 5.3 tonnes from 3.6 tonnes in the previous quarter.
With gold prices remaining elevated, experts suggest checking seven factors before making a purchase.
1. Identify your purpose for buying gold
The first step is determining whether gold is intended for wearing, gifting, savings or long-term investment.
Experts said jewellery and coins are suitable for traditional purchases, while gold ETFs may be more appropriate for investors seeking exposure to gold prices without physical ownership.
MUST READ: Dhanteras 2026: PhonePe announces 2% cashback on 24k gold, here's how to avail it
2. Compare making charges and investment costs
Jewellery buyers should consider making charges, wastage charges and GST, which increase the overall purchase cost.
Digital gold platforms may impose buy-sell spreads and other charges. Gold ETFs involve expense ratios and potentially brokerage fees.
Comparing these costs is essential because they can significantly influence investment returns.
3. Verify purity and storage arrangements
Consumers purchasing jewellery or coins should check BIS hallmarking, purity certification and the Hallmark Unique Identification (HUID) number wherever applicable.
For digital gold, investors should examine how the underlying physical gold is stored, whether independent audits are conducted and what happens if the platform encounters financial difficulties.
Gold ETFs operate under SEBI's mutual fund regulatory framework.
ALSO READ: Gold jewellery gets costlier this Diwali: Hallmarking charges jump 67% — what buyers must know
4. Understand digital gold risks
Digital gold allows investors to purchase fractional quantities through online platforms without requiring a demat account.
According to the World Gold Council, gross digital gold purchases increased 76% to 16.3 tonnes during January-September 2026, compared with 9.2 tonnes in the corresponding period last year.
However, digital gold does not operate under a dedicated SEBI regulatory framework. Experts suggest examining provider credibility, custody arrangements and redemption conditions before investing.
5. Check liquidity and redemption rules
Physical gold can generally be sold or exchanged, although jewellers may impose deductions depending on their buyback policies.
Digital gold liquidity depends on platform terms, while gold ETFs can be traded on stock exchanges during market hours.
Investors should evaluate transaction costs, redemption timelines and potential restrictions before choosing an option.
6. Understand taxation before investing
Tax treatment varies across physical gold, digital gold and ETFs.
Jewellery and digital gold purchases generally attract GST, while capital gains taxation depends on the investment format and holding period.
Investors should compare post-tax returns rather than focusing exclusively on price appreciation.
7. Match purchases with financial goals
The World Gold Council's consumer survey found that 77% of respondents were considering lower-purity jewellery, while 76% were considering exchanging old gold to finance new purchases.
The survey also showed that 39% intended to restrict purchases to festivals, auspicious occasions or promotional offers, reflecting greater price sensitivity.
Experts said investors should avoid making decisions based solely on festive sentiment or short-term price movements.
For long-term portfolio diversification, regulated gold ETFs may offer a suitable investment route. Jewellery remains relevant for personal use and gifting, while digital gold provides convenience for small-ticket purchases.
Ultimately, buyers should evaluate affordability, taxation, liquidity and investment objectives before deciding how much gold to purchase.
MUST SEE THIS: Indians spend ₹2.42 lakh crore on gold despite 29% crash in demand: What's driving the paradox?