Gold Jewellery vs Gold ETFs:
For generations, buying gold has been considered one of the safest and smartest investments in India. Many families see it as both a symbol of wealth and a financial backup for the future. However, experts now say that gold jewellery, while beautiful, may not be the quickest way to earn profits.
Chartered Accountant Nitin Kaushik recently explained that when gold jewellery is treated purely as an investment, it can take five to seven years before any actual profit is seen. He also stressed the difference between buying gold for fashion and buying it for long-term financial growth.
According to Kaushik, 24K gold, which is 99.9% pure, is the best option for investment. In comparison, 22K gold contains 91.6% gold, 18K has 75%, and 14K only around 58.5%. This means that if you buy gold jewellery worth ₹50,000 in 22K, the actual value of gold in it is only about ₹45,800 — the rest is other metals and making charges.
Gold jewellery also includes extra costs like making charges (10% to 25%) and 3% GST, which reduce your actual investment value. Designer jewellery can cost even more. When you sell the jewellery later, most jewellers buy it back below the market price. Because of this, investors usually take several years just to recover their initial cost.
Kaushik also shared that from 2004 to 2024, the price of 10 grams of 24K gold increased from ₹6,307 to ₹78,245, growing about 12 times in 20 years. This equals a 13–14% compound annual growth rate (CAGR) — meaning that pure gold investment generally doubles in about five and a half years.
He further advised that those who want to invest seriously in gold should prefer 24K bars or coins with BIS hallmarks for better purity and transparency. Modern investors can also choose Gold ETFs, Gold SIPs, or Sovereign Gold Bonds (SGBs) for safer and more convenient returns.
In short, while gold jewellery adds charm and tradition, it may take years to bring profit. For real investment benefits, experts recommend going for purer and more transparent gold options.
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