Cost, GST and Resale: Comparing Gold Jewellery and Coins

In the last week, gold’s market price rose by roughly Rs 7,000, settling at Rs 1,49,020 per 10 gram of 24‑karat purity, while silver also posted gains. This price surge forces investors to compare two common forms of gold investment: jewellery and coins.

**Making charges** – Jewellery often includes a maker’s fee that can vary from a modest 3 % for simple designs to over 25 % for ornate wedding sets. Gold coins, by design, incur only a marginal stamp duty, keeping the cost closely aligned with pure gold value.

**GST impact** – Both formats bear a 3 % Goods and Services Tax. However, for jewellery the GST is levied on the entire transaction amount, which includes the making charge, effectively increasing the tax burden. Coins are taxed only on the metal price, resulting in a lower overall tax outlay.

**Storage safety** – Jewellery occupies more space and is commonly stored in bank lockers for high‑value pieces. Coins are compact, allowing for discreet home storage, though any gold holding demands secure measures against theft.

**Resale considerations** – When jewellery is sold, the buyer typically recovers only the gold’s market value; the making charges paid at purchase are lost. Coins, on the other hand, usually command a resale price that mirrors the current market rate, making them a more efficient vehicle for investors focused on liquidity.

In summary, the lower making charges, reduced GST exposure, convenient storage, and stronger resale parity position gold coins as the preferable investment choice in today’s rising‑price environment.