Dhanteras 2026: Buying gold today? Here's how to choose between jewellery, coins, ETFs and SGBs

Gold has long been associated with prosperity and wealth creation in India, making it one of the most popular purchases during Dhanteras. Every year, households mark the occasion by buying gold jewellery, coins and bars, viewing the precious metal as both an auspicious purchase and a store of value.

But there is an important distinction between buying gold for personal use and investing in it to generate returns. The form in which investors buy gold can make a significant difference to their eventual gains, with costs, liquidity, storage requirements and taxation varying across investment options.

Investors can choose from physical gold in the form of jewellery and coins, gold exchange-traded funds (ETFs) and Sovereign Gold Bonds (SGBs). While all these instruments track gold prices in some form, they are not equally efficient from an investment perspective.


Gold ETFs are generally considered the more efficient route for investors seeking to benefit from movements in domestic gold prices, given their relatively lower costs and ease of transactions.

Gold jewellery, coins or ETFs: Which is better for investment?

Gold jewellery is best viewed as a purchase for personal use or gifting rather than as a pure investment. Making charges, GST and deductions at resale can reduce returns, lowering the amount buyers eventually recover.

Gold coins are relatively more cost-efficient than jewellery, as they generally carry lower premiums. However, buyers still need to factor in additional purchase costs and possible deductions when selling them.

Gold ETFs offer a different proposition. They allow investors to participate in domestic gold price movements without having to buy, store or safeguard the physical metal. Listed on stock exchanges, these funds can be purchased and sold through a demat and trading account.

That convenience, however, does not make gold ETFs entirely cost-free. Investors need to account for the expense ratio, brokerage and other transaction charges. Returns may also differ slightly from domestic gold prices because of tracking error.

Liquidity is another factor worth examining before investing. Trading volumes, bid-ask spreads and tracking error can influence the efficiency of transactions, particularly when investors want to enter or exit positions.

Gold ETFs also offer greater transparency and convenience compared with physical purchases, as investors can trade them on the exchange without visiting a jeweller or having to verify the purity of the metal.

Physical gold can also be sold relatively easily, although the offered price mayandepends on the buyer, purity assessment and applicable deductions.

Are Sovereign Gold Bonds still worth considering?

Sovereign Gold Bonds (SGBs) were once considered an attractive alternative to physical gold because they combined returns linked to gold prices with a fixed interest payment.

However, no fresh SGB tranches have been issued since February 2024. Investors looking to purchase these bonds therefore have to turn to the secondary market.

Gold's extraordinary Dhanteras rally meets a sharp correction

Gold has been among the biggest wealth creators for Indian investors over the past five Dhanteras celebrations. Between Dhanteras 2021 and the run-up to Dhanteras 2026, domestic gold prices have surged nearly 192%.

This year's festive season, however, presents a very different picture. After touching record highs in January 2026, gold has undergone a sharp correction, forcing investors to reassess whether the decline presents an attractive buying opportunity or whether further volatility lies ahead.

Gold prices have fallen more than 22% from their all-time high of around Rs 1,80,000 per 10 grams and are currently hovering around Rs 1,40,000. Silver has witnessed an even steeper decline, slipping more than 56% from its record high in late January 2026.

The decline has brought gold back into focus for investors who missed the earlier rally. However, market experts caution against committing the entire investment allocation at once, favouring a staggered approach to purchases instead.

Ponmudi R, CEO of Enrich Money, said the festive season could provide Indian investors with an opportunity to gradually build their exposure to gold rather than make large purchases in a single transaction.

"Investors should avoid deploying their entire allocation at one price. A staggered buying approach is more sensible, particularly after such a volatile correction. Jewellery purchases should be based on personal requirements, while investment decisions should consider price, liquidity and the overall portfolio allocation," he said.

Gold price targets for Dhanteras 2027

Despite the sharp correction, some brokerages believe the decline has improved gold's appeal for investors with a longer investment horizon.

Axis Securities considers current levels attractive, noting that gold has corrected more than 20% from its peak. According to the brokerage, the decline offers investors who missed the previous rally an opportunity to gradually increase their allocation to the precious metal.

Near-term volatility could persist, particularly if expectations of higher interest rates continue to weigh on bullion. Nevertheless, Axis Direct expects gold to deliver returns of approximately 20-25% by the next Dhanteras, provided favourable developments materialise. It has set a target price range of Rs 1,65,000-Rs 1,71,000 per 10 grams.

Religare Broking, meanwhile, has identified Rs 1,30,000-Rs 1,35,000 per 10 grams as the accumulation range for gold, equivalent to 3,665-3,805 per ounce.

The brokerage has set an initial upside target of Rs 1,50,000 per 10 grams (4,455 per ounce). On the downside, Rs 1,21,000 per 10 grams (3,410 per ounce) is the crucial support level. A breach below this level would invalidate its positive outlook.

For silver, Religare Broking recommends accumulation in the Rs 1,50,000-Rs 1,63,000 per kg range, corresponding to 41.5-45 per ounce. It has set an initial target of Rs 2,17,000 per kg (60 per ounce),followed by a higher target of Rs 2,55,000 (70 per ounce).

The brokerage has identified Rs 1,09,000 per kg ($30 per ounce) as the key support level. A fall below this mark would negate its positive outlook on the white metal.

Will gold recover in 2027? What global banks expect

The recent correction has not entirely dented the longer-term optimism surrounding gold. Several major global investment banks continue to expect the precious metal to recover next year, despite near-term headwinds from inflation and monetary policy.

Standard Chartered expects gold to average $4,650 per ounce in the fourth quarter before climbing to $4,850 in the first quarter of 2027. This outlook comes even as expectations of further Federal Reserve tightening remain elevated.

Bank of America (BofA) is also forecasting a recovery in 2027. It expects gold to reach $4,750 per ounce in the first quarter, before rising further to $5,000 in the second and third quarters.

Disclaimer: This article has been written by Veer Sharma, who is not a SEBI-registered Research Analyst or an Investment Adviser. Veer Sharma and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here