Gold Investment: Jewellery, biscuits or gold coins... what's the best buy this festive season?

Gold Investment: The festive season has begun, and buying gold is the talk of the town. Whether it's a wedding or Diwali Dhanteras, gold has always been the top choice for Indians. But the big question is: which investment option is best for gold biscuits, coins, or jewelry? Gold is no longer limited to jewelry; people now consider gold the safest investment option. So, let's understand the full calculation.

Gold Jewelry
Jewelry is beautiful and emotionally charged. It's always in demand for festivals and gifts. However, jewelry isn't as profitable an investment. Making charges and design premiums add up, which can lead to a 10–15% loss when sold.

Gold Biscuits
Gold biscuits are considered a better investment option. They contain pure gold, with little or no manufacturing charges. When resold, they fetch a price close to the market rate. However, they are subject to safekeeping and are subject to a 3% GST.

Gold Coins
Gold coins are also a good investment. They are made of 22-carat or 24-carat pure gold. They do not incur manufacturing charges and can be easily sold at market rates. Purchasing coins from a reputable brand is beneficial. However, the price of these coins can be slightly higher, and it is important to store them safely.

Calculation:
On Tuesday, the price of gold reached ₹115,349 per 10 grams (99.9% pure) at the India Bullion Jewellery Association (IBJA). Suppose you buy a 10-gram gold biscuit:

Expense: ₹1,15,349 + 3% GST (₹3,460) + making charges (average ₹2,000) = Total ₹1,20,809
Calculation: Investment = ₹1,15,349, Annual Return (10%) = ₹11,534, Expense Deduction (GST + making charges) = ₹5,460, Net Profit = ₹6,074.
Advantage: Gold is a safe investment, offering good returns even in times of inflation and economic uncertainty. Over the past 10 years, it has delivered 8-12% annual returns.
Disadvantage: Prices can fluctuate over short periods. Biscuits/coins have storage and insurance costs (0.5-2% annually). Jewellery has higher making charges and lower resale value.

Expert Advice
Experts say that if you're buying gold as an investment, biscuits or coins are better options. Jewelry is good for sentimental purposes and wear, but not as profitable as a pure investment.

Disclaimer: This content has been sourced and edited from Dainik Jagran. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.