Gold Hits Record High: What You Need to Know Before Buying

Gold prices have reached an all-time high in India, touching ₹1.55 lakh for 10 grams of 24-carat gold on September 6. This has led to a dilemma for those planning to buy gold for weddings or as an investment.

If you're buying gold for a wedding, the decision is relatively straightforward: you need to purchase what you require. However, at this record high price, it's essential to be mindful of making charges and GST, which can add up quickly. For example, if you buy ₹1 lakh worth of gold jewellery, the making charge alone can amount to ₹15,000, plus 3% GST.

For investors, buying gold at this record high is not a good idea. The making charge for jewellery is a sunk cost that will never be recovered when selling back the piece. Moreover, the government has stopped issuing fresh Sovereign Gold Bonds since early 2024, leaving only gold ETFs or digital gold as options for pure investment.

Experts recommend buying simpler designs to minimize making charges and considering coins or plain chains instead of heavy bridal sets. For investors, it's best to use an ETF or digital gold and keep it a small portion of their overall investments.