Gold Investment Comparator
Compare Sovereign Gold Bonds (SGB), physical gold, digital gold, and Gold ETFs side by side. See which gold investment gives you the best returns after costs, taxes, and interest.
Investment Parameters
Per gram, 24K. About ₹15,000 in September 2026; enter today's rate.
SGB maturity: 8 years. Long-term needs more than 12 months (SGB, ETF) or 24 months (physical, digital), so exactly 1 or 2 years counts as short-term.
SGBs pay 2.5% of the original issue price. A bond issued at ₹5,000/g pays ₹125/g a year, under 1% of a ₹15,000 price.
Your income tax slab rate. 4% cess is added to all tax.
SGB Net Value
Physical Gold Net Value
Digital Gold Net Value
Gold ETF Net Value
Net Value Growth Over Time
Best Option
Side-by-Side Comparison
| Feature | SGB | Physical Gold | Digital Gold | Gold ETF |
|---|
Calculations assume constant gold price appreciation. Actual returns may vary. No new SGBs have been issued since February 2024, so new buyers can only buy on the exchange. From 1 April 2026, SGB gains are tax-free at maturity only for original subscribers who hold to maturity; otherwise they are taxed at 12.5% after 12 months. Physical and digital gold: 12.5% after 24 months. Gold ETFs: 12.5% after 12 months. Shorter holdings are taxed at your slab rate.
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Which Gold Investment is Best in India?
For someone buying gold today, a Gold ETF is usually the cheapest route: no GST on purchase, a low expense ratio and long-term tax treatment after 12 months. Physical and digital gold both carry 3% GST plus making charges or spreads, and SGBs bought on the exchange lose the tax-free maturity. The way you buy gold matters, and there are four main options: Sovereign Gold Bonds (SGB), physical gold (jewellery and coins), digital gold (via platforms like Augmont, SafeGold, and MMTC-PAMP), and Gold ETFs (exchange-traded funds listed on NSE/BSE).
Each option has different cost structures, tax treatments, and liquidity profiles. SGBs issued by the RBI combine gold price appreciation with 2.5% annual interest on the issue price, and gains at maturity are tax-free for original subscribers. No new SGBs have been issued since February 2024, so anyone buying now buys on the exchange, where maturity gains are taxed. Physical gold offers tangible ownership but comes with making charges (8-25%), storage costs, and purity risk. Digital gold removes storage hassle but adds GST and platform spreads. Gold ETFs are listed securities with low expense ratios but require a demat account.
The comparator works out net returns for all four side by side, after costs, fees and tax, for your holding period and tax slab.
Worked example: ₹1 lakh in gold for 8 years
Illustrative: ₹1,00,000 at ₹15,000 a gram, gold rising 8% a year, held 8 years, 30% slab. SGB interest is 1% of what you pay, the bond is bought on the exchange (box unticked), making charges are 8%, the digital gold spread is 3% and the ETF charges 0.5%. These are the defaults.
| Option | Net value | CAGR |
|---|---|---|
| SGB (bought on exchange) | ₹1.80 L | 7.6% |
| Gold ETF | ₹1.68 L | 6.7% |
| Digital gold | ₹1.62 L | 6.2% |
| Physical gold | ₹1.55 L | 5.6% |
The SGB wins by ₹11,834 because of its interest, even though its gain is taxed like the others. Physical gold comes last: 3% GST and 8% making charges take ₹11,000 on day one, so you start with 5.93 grams instead of 6.67.
If you are buying gold as an investment rather than to wear, this is the gap to look at. The calculator assumes the SGB costs the same as the gold price, so check the actual market price of the bond before you buy.
How to Use This Comparator
- 1
Enter your investment amount
How much you plan to invest in gold. The tool calculates grams of gold you can buy with this amount at the current price, after accounting for each option's upfront costs.
- 2
Set gold price and appreciation rate
Enter today's gold price per gram and the annual appreciation you expect. Gold returned about 11.8% a year in rupees from 1995 to 2025, but with long flat stretches along the way.
- 3
Adjust costs and holding period
Set making charges for physical gold, digital gold spread, ETF expense ratio, and your holding period. SGB’s tax-free maturity only applies if you bought at original issue and hold for the full 8 years; tick the box above only if that’s you.
- 4
Select your tax slab
Your slab sets the tax on SGB interest and on short-term gains for every option. Long-term gains are a flat 12.5% whatever your slab, so the slab matters most if you sell early.
Understanding Gold Investment Options
Sovereign Gold Bonds (SGB)
Government-backed securities denominated in grams of gold. Issued by RBI on behalf of the Government of India. They pay 2.5% a year on the issue price, plus gold price appreciation, with an 8-year term and an early-exit option after 5 years. No new tranche has been issued since February 2024; existing bonds trade on the exchange. From 1 April 2026, redemption at maturity is tax-free only for original subscribers.
Physical Gold
Jewellery, coins, or bars. Tangible asset with cultural significance. However, it carries 3% GST on purchase, making charges (8-25% for jewellery), storage and insurance costs, and purity risk. You also lose 1-2% when selling to a jeweller. Best for those who want wearable gold.
Digital Gold
Buy gold online through platforms like Augmont, SafeGold, or MMTC-PAMP via apps like PhonePe, Paytm, and Google Pay. Gold is stored in insured vaults. 3% GST applies on purchase. Platforms charge a buy/sell spread of 2-5%. No regulatory framework yet (not SEBI-regulated).
Gold ETFs
Exchange-traded funds that track gold prices, listed on NSE/BSE. Requires a demat account. Expense ratios of about 0.35–0.81% a year among large gold ETFs come off your return every year. Highly liquid during market hours. SEBI-regulated. No GST on purchase. Gains are long-term after more than 12 months, taxed at 12.5%.
Gold Investment Tax Rules
- Sovereign Gold Bonds (SGB): from 1 April 2026, redemption at maturity is tax-free only for original subscribers who hold to maturity. Bonds bought on the exchange, and early redemptions, are taxed: 12.5% without indexation if held more than 12 months, slab rate otherwise. The 2.5% interest is taxable at your slab rate.
- Physical Gold: holding period for LTCG is 24 months (reduced from 36 months in Budget 2024). Held more than 24 months: 12.5% without indexation (for sales from 23 July 2024). Held 24 months or less: taxed at your slab rate. 3% GST on purchase is a non-recoverable cost.
- Digital Gold: taxed like physical gold: 12.5% if held more than 24 months, slab rate otherwise. Note: digital gold is not regulated by SEBI or RBI, so there is no investor protection framework.
- Gold ETFs: listed securities: 12.5% if held more than 12 months; held 12 months or less, taxed at your slab rate. No GST on purchase. Expense ratio is deducted from NAV daily, reducing your effective returns over time.
- Gold mutual funds (fund of funds): unlisted units: 12.5% only if held more than 24 months, slab rate otherwise. Planning to invest monthly? The gold SIP calculator works out tax instalment by instalment.
The ₹1.25 lakh yearly long-term gains exemption applies only to equity, not to gold, and 4% health and education cess is added to the tax. From tax year 2026-27 these rules are in the Income-tax Act 2025 (section 2(101) for holding periods, section 197 for the 12.5% rate, section 70(1)(x) for the SGB maturity exemption).
Sources: RBI SGB FAQ | Income-tax Act, 2025 (as amended by Finance Act 2026)
