Should you buy gold or silver this Dhanteras? If you are planning to make a purchase this year, this question has likely crossed your mind. Given the price fluctuations of both metals, making the right choice is not easy. In such a situation, consider not just the price, but also your budget, the purpose of your purchase, and your future needs. Let’s explore which option might be the better choice for you.
Gold and Silver Prices in India Ahead of Dhanteras 2026
Before purchasing gold or silver on Dhanteras, it is important to compare their current prices. In recent times, the prices of both metals have declined, with the drop in the price of silver being more pronounced. Given this, the decision to make a purchase should not be based solely on the lower price; rather, it should take into account your personal budget and requirements.
Latest gold and silver prices in India
| Metal | Price | Unit |
|---|---|---|
| 24-karat gold | ₹1,39,790 | Per 10 grams |
| 22-carat gold | ₹1,27,683 | Per 10 grams |
| Silver with 999 purity | ₹1,78,570 | Per kilogram |
These are reference rates. The actual price may vary depending on the city and the jeweler. When purchasing jewelry, making charges and GST are also added to the total bill.
Recent changes in gold and silver prices
| Changes in the market | Gold | |
|---|---|---|
| Price changes in October | Approximately -7% | Approximately -20% |
| Recent business downturn | 0.07% | 1.06% |
Gold vs Silver Investment – What Makes Them Different?
Determining whether gold or silver has yielded higher returns depends on your investment horizon. In recent years, silver has outperformed gold over several periods, but its price has also experienced sharper declines. Therefore, looking solely at returns is not enough; it is also essential to consider the level of risk taken to achieve those returns.
| Basis of comparison | Gold | Silver |
|---|---|---|
| Main demand | Jewelry, investment, and central bank reserves | Industrial use, jewellery, and investment |
| Price fluctuations | Generally low | More generally |
| Industrial demand | Relatively limited | Important in solar panel, electronics, and other industries |
| Market liquidity | The global market is larger and more liquid. | The market is relatively small. |
| Storage | Requires less space for the same value | More space is needed for the same value. |
| Role in investment | To preserve wealth over the long term and diversify one’s portfolio | To capitalize on price surges, with higher risk involved |
Gold vs Silver Returns What the Latest Numbers Tell Us
Gold and silver are both precious metals, but they play very different roles when you invest in them. People usually turn to gold as a safe option when the economy is uncertain, while silver’s price depends a lot on industrial demand too.
Returns on gold and silver in India
| Investment duration | Gold returns | Returns on silver |
|---|---|---|
| 1 year | 13.2% | 17.7% |
| 3-year (CAGR) | 30.0% | 34.3% |
| 5-year (CAGR) | 22.8% | – |
| 10-year (CAGR) | 15.0% | – |
Comparison of year-on-year returns
It is also useful to examine the performance of individual years alongside the long-term average. This reveals that the returns for both metals do not remain the same from year to year.
| Calendar year | Gold | Silver |
|---|---|---|
| 2026 (up to November 3) | +3.7% | -23.3% |
| 2025 | +71.5% | +161.7% |
| 2024 | +19.6% | +16.7% |
| 2023 | +13.5% | +2.0% |
When Gold May Be the Better Choice
If you are considering buying gold this Dhanteras, first assess your specific needs. For some, gold serves as a means of saving, while others purchase it for personal wear or for their family.
- When you intend to invest for the long term: If you plan to buy gold and hold it for several years, it can form a part of your savings. However, since its value can also decline, avoid investing money that you might need in the near future.
- When you seek balance in your investment portfolio: If the majority of your savings is in the stock market, adding gold can provide diversification. While gold sometimes performs differently during market downturns, this is not guaranteed to happen every time.
- When you want to avoid the high volatility associated with silver: Although the price of gold fluctuates, it generally experiences less volatility compared to silver. Therefore, if sharp price swings cause you concern, gold may be a more comfortable option for you.
- When you might need to sell the gold later: In India, it is easy to find buyers and a ready market for gold. However, there is no guarantee that you will recover the full purchase price when selling; factors such as purity, making charges, and the jeweler’s buyback policy will influence the outcome.
- When the purpose is to wear the gold or give it as a gift: Getting gold jewellery on Dhanteras is a big tradition. Whether you want to wear it, gift it, or invest, it is a solid pick. Just make sure to check the making charges and everything else on the bill first.
When Silver May Be the Better Choice
Silver is great if you don’t want to spend too much. Just figure out why you are buying, and keep in mind that silver prices change fast.
- Investment on a Small budget: Silver is way cheaper than gold, so you can start small. If you want to put in a little money this Dhanteras, go for silver coins or bars.
- Ability to withstand price volatility: Silver prices can change rapidly. If you are capable of maintaining your investment over the long term rather than panicking and selling when prices drop then silver may be worth considering.
- Interest in industrial demand: Silver is used in industries such as solar panel manufacturing and electronics. Demand from these sectors can influence its price, though this does not guarantee an increase in value.
- Portfolio diversification: If you already have gold, adding silver can help balance your portfolio. Just keep in mind that both metals can still drop in price at the same time, so there is always some risk.
- For personal use or gifting: Buying silver coins, utensils, or jewellery is a big trend on Dhanteras. Before you pay, just talk to the shopkeeper and clear out the purity, making charges, and resale price.
Physical Gold, Silver or ETFs – Which Buying Method Makes Sense?
When buying gold or silver on Dhanteras, choosing the metal alone is not enough. You also need to decide whether to purchase it in the form of jewellery or coins, or to invest through an ETF. Each option comes with its own set of costs and conveniences.
| How to purchase | Who is it right for? | A point to note |
|---|---|---|
| Gold jewelry | Wearing yourself, gifting, or family use | Watch out for making charges and what they pay you back when selling. |
| Gold coins or bars | Keeping physical gold and saving for the long run | Always check purity, grab the bill, and see how easy it is to sell. |
| Silver coins or vessels | Tight budget buying or giving gifts | Check purity and making charges, plus figure out where you’ll store it. |
| Gold ETF | Invest in gold prices directly, without holding physical gold at home. | You need a demat account; keep an eye on fees and live market prices. |
| Silver ETF | Tracking silver price swings through your investment | Silver jumps around a lot, so check the fund fees and tracking gap. |
GST and Other Costs of Buying Gold and Silver in India
| Cost | GST / Charges | What to Know |
|---|---|---|
| Gold and silver coins or bars | 3% GST | GST is charged on the value of the metal. |
| Gold and silver jewellery | 3% GST on the total transaction value | GST applies to the total jewellery value, even if making charges are shown separately. |
| Jewellery job-work services | 5% GST | This applies to the service provided by a job worker or artisan, not as an additional 5% GST on finished jewellery purchased by a customer. |
| Making charges | Varies by jeweller | This is a jewellery-making fee, not a GST rate. |
| Coin or bar premium | Varies by seller | Brand, packaging, and availability may make the price higher than the market rate. |
| Gold or Silver ETFs | Expense ratio and applicable brokerage | Physical-metal GST does not apply to ETF purchases; investment-related charges may apply. |
Investing in Gold ETFs and Gold Mutual Funds via Pocketful
Planning to buy gold this Dhanteras, but don’t want the hassle of storing physical jewelry or coins? You can invest in gold through Gold ETFs or Gold Mutual Funds instead. You can explore these options by opening an account on Pocketful.
How to open an account on Pocketful?
Opening an account on Pocketful is completely free, with no charges for account creation or annual maintenance. You just need to visit their website or app, type in your mobile number, finish your KYC process using your PAN and Aadhaar, and connect your bank account. As soon as your account is up and running, you are ready to start investing right away.”
How to buy Gold ETFs?
Log in to Pocketful and search for Gold ETFs. Before purchasing, check the ETF’s price and associated costs. Select the ETF of your choice, enter the quantity, and place your order.
How to invest in Gold Mutual Funds?
To invest in Gold Mutual Funds, go to the ‘Mutual Funds’ section and look for Gold Mutual Funds. Check the fund’s fees and risk level, then pick either an SIP (Systematic Investment Plan) or a lump-sum payment.
Do your research before investing
Make sure to do your research first. You can use tools like Pocketful GPT and the Funds Screener to get market details and compare funds. Always read the fund’s scheme document carefully before you put in your money.
Mistakes to Avoid When Buying Precious Metals
Buying gold or silver on Dhanteras? Don’t ignore small things, or you will lose money later.
- Buying without checking for a hallmark: Always look for the BIS hallmark and the HUID (Hallmark Unique Identification) number when purchasing gold jewellery. You can verify the HUID using the ‘BIS Care’ app; this helps confirm the purity of the jewellery.
- Asking only for the price of gold: The final cost of jewellery includes making charges and GST. Before making a purchase, ask for a complete bill to see the total amount you will be required to pay.
- Not asking about weight and purity: If the jewellery has stones or other materials in it, check their weight separately. The bill needs to show the net weight of the gold along with its purity (carat).
- Buying without a bill: Always keep your bill safe. It should list the price, weight, purity, and every charge you paid. This paper is going to save you trouble if you ever want to sell or exchange the item later.
- Not asking about resale terms: Before buying, ask the jeweller how much money they will deduct if you sell the item back later. Making charges are usually not refunded, so it is best to get this clear up front.
- Making hasty decisions: Don’t jump into buying just because of festive discounts or crowded shops. Take a moment to compare prices and the final bill at a couple of different places so you get the best deal possible.
Conclusion
Buying gold on every Dhanteras isn’t mandatory. Pick silver if that fits your wallet better right now. You can even skip buying altogether if the timing feels off. Celebrate the festival and stay smart with your money.
Frequently Asked Questions (FAQs)
Is gold or silver a better investment for Dhanteras 2026?
It just depends on your budget and what risk you can take. Gold is safer and stays steady, but silver prices jump up and down a lot more.
Can I invest in gold without buying physical gold?
Yes, you can easily invest in digital options like Gold ETFs or Gold Mutual Funds.
What is the GST on gold and silver in India?
There is a flat 3% GST on buying both gold and silver.
Is silver more volatile than gold?
Yes, silver prices jump around way more than gold.
What should I check before buying gold jewellery?
Check the BIS hallmark, HUID number, exact gold weight, and making charges. And always get a bill.
