How To Buy Gold In India (2025) – Best Methods, Pros & Cons Explained

Editorial Note: While we adhere to strict Editorial Integrity, this post may contain references to products from our partners. Here's an explanation for How We Make Money. None of the data and information on this webpage constitutes investment advice according to our Disclaimer.

Methods to buy gold in India:

Physical Gold. Includes jewelry, coins, and gold biscuits, commonly bought from jewelers, banks, and online platforms.
Digital Gold. Allows you to buy and store gold online via platforms like MMTC-PAMP, SafeGold, and Tanishq Digital Gold.
Gold ETFs (Exchange-Traded Funds). Traded on stock exchanges through brokers like Zerodha, Groww, and Upstox.
Sovereign Gold Bonds (SGBs). Government-backed bonds available through banks, post offices, and stock exchanges.
Gold Savings Schemes. Monthly installment plans offered by jewelers like Tanishq, Kalyan, and Malabar Gold.
Gold CFDs (Contracts for Difference). Speculative trading on gold price movements via Forex brokers.

Gold has always been more than just a metal in India. It represents wealth, tradition, and financial security. Whether it's buying jewelry for weddings or investing for the future, Indians have relied on gold for generations. Today, with multiple ways to buy gold — physical, digital, ETFs, sovereign gold bonds, and even gold CFDs — choosing the right option can feel confusing.

Each method has its own benefits and challenges. Some offer security and liquidity, while others require careful handling and storage. Your decision should depend on your financial goals, convenience, and risk appetite.

This guide covers the best ways to buy gold in India, explaining physical gold, digital gold, ETFs, sovereign gold bonds, and gold CFDs for active traders. We’ll compare the pros and cons of each, helping you make an informed choice. If you're interested in trading gold instead of owning it, we’ll also include a list of Forex brokers offering gold CFDs.

Let’s explore how to invest in gold the smart way!

Best gold investment options in India: Pros, cons, and key insights

Gold investment in India comes with multiple options, each catering to different financial goals and risk appetites. Whether you prefer physical gold, digital gold, or market-linked options like ETFs and sovereign bonds, understanding their pros and cons can help you make a smarter choice. Here’s a breakdown of the best gold investment methods and what you need to know before buying.

Gold investment in India

1. Buying physical gold in India

Investing in physical gold has been a longstanding tradition in India, offering both cultural significance and a tangible sense of security. However, it's essential to navigate the various avenues of purchasing physical gold wisely to maximize benefits and minimize potential drawbacks.

a) Jewelry – Traditional but costly

Investing in physical gold

Gold jewelry is deeply rooted in Indian culture. Families buy it for weddings, festivals, and as a long-term investment. However, it’s not always the best financial move.

Tangible and accessible. Gold jewelry provides a physical asset that can be easily stored and accessed.
Cultural significance. It plays a vital role in traditions and is often considered a symbol of wealth and prosperity.
Dual purpose. Jewelry serves both as an ornament and an investment, making it a versatile asset.
Gift-worthy. It is widely gifted on special occasions, further adding to its sentimental value.

High making charges. Jewelers charge anywhere between 6% to 25% over the gold price, which increases the overall cost. These charges are usually non-recoverable upon resale.
Purity concerns. The authenticity of gold can sometimes be questionable. It is crucial to check for BIS hallmark certification to ensure purity.
Resale challenges. When selling gold jewelry, most jewelers deduct making charges and may offer a lower price than the prevailing gold rate.

Where to buy?

Local jewelers (ensure hallmarking).
Branded stores (Tanishq, Malabar, Kalyan).
Online stores (Tanishq, CaratLane).

b) Gold coins and bars – A smarter physical investment?

Gold coins and bars

Unlike jewelry, gold coins and bars (also known as gold biscuits) offer a purer and more cost-effective way to invest in gold. They typically come with 24K purity (99.9%) and have lower making charges, making them a preferred choice for investment purposes.

Higher purity. Gold coins and bars have a higher purity level than jewelry, ensuring better value retention.
Better resale value. While banks do not buy back gold, jewelers and refineries usually accept it, making resale easier.
Variety of weights. Available in different sizes, starting from 0.5 grams to 1 kilogram, catering to various investment needs.

Storage and security risks. Keeping physical gold at home carries the risk of theft, so bank lockers or secure storage options are advisable.
Limited buyback options. Banks sell gold but do not repurchase it, requiring investors to rely on jewelers or third-party buyers for resale.
Premium costs for smaller denominations. Smaller gold coins and bars often carry a higher premium compared to larger ones, making bulk purchases more cost-effective.

Where to Buy?

Banks (ICICI, HDFC, SBI — note they don’t repurchase).
Jewelers (BIS-certified coins and bars).
Online platforms (Tanishq, MMTC-PAMP).

2. Digital gold – A modern alternative

Digital gold – A modern alternative

If you don’t want the hassle of storing physical gold, digital gold is a secure, flexible, and accessible alternative. It allows you to buy, sell, and store gold online, all without needing a locker. The gold you purchase is backed by real physical gold, stored in secure vaults.

Platforms like MMTC-PAMP, Tanishq, and SafeGold allow users to buy gold online for as little as ₹1. Every purchase is backed by physical gold stored in a vault. You can hold your gold digitally, sell it at any time, or even get it delivered as physical gold.

No storage concerns. The gold is stored in insured vaults, eliminating worries about theft or damage.
Easy transactions. Investors can buy and sell at real-time gold prices with just a few clicks.
Small investments possible. Digital gold allows you to invest in fractions of a gram, making it accessible to all.
Convert to physical gold. If needed, you can request physical delivery of your holdings.

Lack of regulation. Digital gold is not regulated by SEBI or RBI, which may pose certain risks.
Limited holding period. Some platforms only allow storage for 5-7 years, after which you must sell or take delivery.
Platform dependency. If the provider shuts down, retrieving your gold could become difficult.

Where to buy?

MMTC-PAMP. Offers 99.99% pure gold, backed by government partnerships.
SafeGold. Allows flexible purchases and gold conversion.
Tanishq Digital Gold. Trusted by a leading jewelry brand.
Paytm & PhonePe. Partnered with MMTC-PAMP and SafeGold.

3. Gold ETFs – Trade gold like stocks

Gold ETFs – Trade gold like stocks

For those who want to invest in gold without handling physical metal, gold ETFs (exchange-traded funds) offer a convenient and efficient option. These funds track gold prices and trade on stock exchanges like NSE and BSE, combining the liquidity of stocks with the security of gold investments.

Gold ETFs are backed by 99.5% pure physical gold, securely stored in vaults by fund houses. Investors purchase units of these funds through a demat account, similar to buying stocks.

No storage worries. The gold is held securely by fund houses, eliminating the need for personal storage.
Highly liquid. Gold ETFs can be bought and sold anytime on stock exchanges at market prices.
No making charges. Unlike jewelry or coins, ETFs do not carry making charges, making them cost-efficient.
Regulated investment. SEBI regulates gold ETFs, offering better investor protection than unregulated digital gold.

Requires a demat account. Investors must have a demat and trading account to buy and sell gold ETFs.
Additional costs. Brokerage fees and fund management charges apply, slightly reducing returns.
Market risks. Gold prices fluctuate, impacting the value of the investment.

Where to buy?

Stock exchanges (NSE, BSE) via Zerodha, Groww, Upstox.
Top Gold ETFs in India:
- Nippon India Gold ETF.
- HDFC Gold ETF.
- SBI Gold ETF.

4. Sovereign bold bonds (SGBs) – The smartest gold investment?

Sovereign bold bonds (SGBs)

If you want gold investment with extra benefits, sovereign gold bonds (SGBs) are a government-backed option that pays interest while protecting you from storage hassles. Issued by the Reserve Bank of India (RBI), these bonds offer a secure, tax-efficient, and long-term way to invest in gold.

SGBs are denominated in grams of gold and available through banks, post offices, and stock exchanges. Investors earn 2.5% annual interest, credited directly to their bank accounts. When the bond matures, you receive the equivalent gold value at market rates.

Earn fixed interest. Investors receive 2.5% annual interest, unlike physical gold or gold ETFs, which do not generate passive income.
No storage concerns. SGBs are held digitally in RBI records, eliminating the risks of theft or damage.
Tax benefits. Capital gains are tax-free if held until maturity (8 years), making them more tax-efficient than other gold investments.
Government-backed security. Since SGBs are issued by RBI, they come with the highest level of safety.

Fixed tenure. SGBs have an 8-year tenure, with early redemption allowed only after 5 years under specific conditions.
Lower liquidity. Unlike gold ETFs, SGBs can be harder to sell before maturity, especially at fair market prices.
Gold price fluctuations. While SGBs offer stability, the final returns still depend on gold price movements at the time of maturity or resale.

Where to buy?

Banks (SBI, HDFC, ICICI) and post offices.
Stock exchanges (NSE, BSE) via Zerodha, Groww, Upstox.

5. Gold savings schemes – A disciplined way to buy gold

Gold savings schemes

Gold savings schemes allow buyers to accumulate gold over time by making monthly deposits. Offered by jewelers, these plans help customers save in installments and purchase gold at maturity. They are especially popular for wedding planning and long-term gold purchases, but they come with risks, particularly if the jeweler faces financial trouble.

Encourages disciplined savings. These schemes help individuals set aside money regularly to buy gold without a lump-sum payment.
Potential discounts. Some jewelers offer discounts on making charges, reducing overall costs.
Flexible deposits. Customers can choose deposit amounts based on their budget, making it accessible to all.

Restricted to one jeweler. Buyers must purchase gold from the same jeweler where they enrolled in the scheme.
Lack of regulation. These schemes are not regulated by RBI or SEBI, making them riskier than bank-backed options.
No interest earnings. Unlike sovereign gold bonds, gold savings schemes do not generate any interest income.

Where to enroll?

Tanishq Gold Harvest Scheme (12-month plan with extra bonus).
Kalyan Jewellers Gold Schemes (monthly installment plans).
Malabar Gold & Diamonds Easy Pay (flexible tenure options).

6. Gold CFDs – Trading gold without owning it

Gold CFDs

If you want to profit from gold price movements without owning physical gold, Gold CFDs (Contracts for Difference) offer a highly liquid and flexible option. These financial instruments let traders speculate on gold’s price without buying or storing the metal.

Gold CFDs are popular among Forex traders and those who want short-term gains rather than long-term investment security.

A CFD is a contract between you and a broker. You predict whether gold prices will rise or fall and earn a profit (or loss) based on the price movement. You don’t own real gold — instead, you trade based on price fluctuations.

No storage or security concerns. Since there’s no physical gold involved, there’s no need for safekeeping.
Leverage available. Traders can control larger positions with smaller capital, potentially increasing returns.
Fast buy/sell execution. CFDs allow for quick trades, making them ideal for short-term market movements.

High risk. Using leverage can magnify losses just as much as it can amplify gains.
Market expertise required. Trading CFDs demands strong market knowledge, making it unsuitable for beginners.
No gold ownership. Unlike physical gold or ETFs, CFD traders only speculate on price changes without holding actual gold.

If you want to trade gold as a CFD, choosing a regulated broker with competitive spreads and strong trading tools is crucial. Below is a comparison of the top Forex brokers that offer gold CFDs based on key factors like spreads, minimum deposit, and regulation level.

Best brokers for gold trading
	Min. deposit, $	XAU/USD spread, pips	Max. Regulation Level	TU overall score	Open an account
Plus500	100	45	Tier-1	6.83	Open an account Your capital is at risk.
Pepperstone		22	Tier-1	7.17	Open an account Your capital is at risk.
OANDA		30	Tier-1	6.8	Open an account Your capital is at risk.
FOREX.com	100	35	Tier-1	6.95	Study review
Interactive Brokers		15	Tier-1	6.9	Open an account Your capital is at risk.

A smart move is to watch for price gaps between online and offline markets

Many beginners don’t realize that gold prices vary by region in India. Before buying, check rates in different states because gold is often cheaper in places like Tamil Nadu and Kerala due to high demand and efficient supply chains. On the other hand, Mumbai and Delhi usually have slightly higher prices due to additional costs like taxes and making charges. A simple trick is to buy from a region where gold is cheaper and sell in a high-demand city, allowing you to save money and get better returns when selling.

Another smart move is watching for price gaps between online and offline markets. Digital gold platforms like MMTC-PAMP, SafeGold, and Paytm sometimes take a few minutes to update their prices when gold rates fluctuate. If you spot a lower price online, you can buy instantly before the system adjusts and later convert it into physical gold at a higher rate. This works best during sudden market swings, like after major economic news, when online prices don’t reflect the latest market moves right away.

Conclusion

Gold has always been a trusted asset in India, but the best way to invest depends on your goals, risk tolerance, and investment horizon. If you want something tangible, physical gold like jewelry, coins, or bars is an option, though it comes with storage and resale challenges.

For those seeking convenience and liquidity, Digital Gold and Gold ETFs allow easy buying and selling without storage worries. If you want returns along with tax benefits, sovereign gold bonds (SGBs) offer 2.5% annual interest and zero capital gains tax on maturity.

On the other hand, if you're a short-term trader looking to profit from gold price movements, gold CFDs provide a highly liquid trading option without owning physical gold. Long-term investors should consider SGBs or Gold ETFs, while traders can explore Gold CFDs for market speculation. No matter the method, always research before investing and, if needed, consult a financial expert.

FAQs

What is the safest way to buy gold in India?

Sovereign Gold Bonds (SGBs) are the safest option since they are government-backed, offer interest, and have no storage risks.

Can I buy gold online in India?

Yes, you can buy digital gold, gold ETFs, and sovereign gold bonds (SGBs) through online platforms like MMTC-PAMP, Zerodha, and banks.

Is gold a good investment in 2025?

Gold remains a safe-haven asset and can help hedge against inflation and economic uncertainty.

Can I trade gold without buying it physically?

Yes, you can trade gold CFDs through Forex brokers like IC Markets, FP Markets, and AvaTrade to speculate on gold prices.

Team that worked on the article

Peter Emmanuel Chijioke is a professional personal finance, Forex, crypto, blockchain, NFT, and Web3 writer and a contributor to the Traders Union website. As a computer science graduate with a robust background in programming, machine learning, and blockchain technology, he possesses a comprehensive understanding of software, technologies, cryptocurrency, and Forex trading.

Having skills in blockchain technology and over 7 years of experience in crafting technical articles on trading, software, and personal finance, he brings a unique blend of theoretical knowledge and practical expertise to the table. His skill set encompasses a diverse range of personal finance technologies and industries, making him a valuable asset to any team or project focused on innovative solutions, personal finance, and investing technologies.

Learn about our editorial policies

Chinmay Soni is a financial analyst with more than 5 years of experience in working with stocks, Forex, derivatives, and other assets. As a founder of a boutique research firm and an active researcher, he covers various industries and fields, providing insights backed by statistical data. He is also an educator in the field of finance and technology.

As an author for Traders Union, he contributes his deep analytical insights on various topics, taking into account various aspects.

Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).