Want to buy gold today?:From BIS certification to taxes applied, find out what precautions to take while buying physical digital gold

In Hindu religion, it is believed that buying gold on Dhanteras pleases Goddess Lakshmi and brings prosperity. Every year on this day, markets witness heavy footfall. According to the India Bullion and Jewellers Association (IBJA), about 40 tons of gold was sold in India on Dhanteras in 2020. In 2022, around 39 tons of gold was purchased. Moreover, the World Gold Council report shows that India’s annual gold demand reached 802.8 tons in 2024, worth approximately ₹5.15 lakh crore. These figures show that whether prices are high or low, gold remains the first choice for us Indians. However, if certain important factors are not considered before purchasing, this investment can also lead to losses. Lets delve into following points? Question – What precautions should be taken while buying gold? Answer – Gold is not just for jewellery, but is also considered a major investment. Therefore, knowing some important things before making a purchase is necessary for both your money and security. Let’s understand this through the graphic. Question – What is hallmark? Why is it important to check it while buying gold? Answer- Hallmark gold means a government certificate of gold’s purity and authenticity. In India, this certification is given by BIS (Bureau of Indian Standards). When jewelry has a hallmark, it means that gold has been tested and is pure according to standards. Hallmark provides confidence to both buyers and investors and makes gold trading easier. Indian Gold Hallmark Symbols: Question- What is Digital Gold? Answer- Digital gold is a method through which you can buy, sell and securely store gold online. When you buy digital gold, physical gold of equivalent weight is stored in a secure vault for you. This means the gold belongs to you, but the responsibility for its security lies with the company providing it. Question- Is buying digital gold safe? Answer- Generally, buying digital gold is considered safe, but it’s important to keep certain things in mind. Whether digital gold is safe or not depends on which company you buy it from. Since digital gold is not directly regulated by RBI or SEBI, but rather managed by different companies and trusts, when purchasing it, only buy from trusted platforms (like Paytm, Google Pay, PhonePe or banking apps) and consider it as a short to medium term option rather than a long-term investment. In digital gold, you can invest online with small amounts and an equivalent amount of real gold is kept secure with the trust. You can sell it anytime or convert it into physical gold (coins/bars). Question- What precautions should be taken while buying digital gold? Answer- There are several important things to keep in mind when buying digital gold. Let’s understand this through the graphic. Question- Which is better for investment – coins or jewellery? Answer- Gold coins or bars are considered better for investment since they have very low or negligible making charges and provide good returns when selling. On the other hand, jewelry includes making charges and design charges which are not recovered during resale. Therefore, if your goal is only investment, buying coins or bars is more beneficial, while jewelry is purchased from an emotional and usage perspective. Question- Do you have to pay tax on physical gold and digital gold? Answer- Yes, tax applies in both cases. For physical gold, 3% GST must be paid when purchasing gold. Tax may also apply on making charges for jewelry. If you sell gold and make a profit, it falls under capital gains tax. Selling within 3 years attracts short-term capital gains tax. This is according to the income tax slab. Selling after 3 years attracts 20% long-term capital gains tax. The same rules apply to digital gold as well, as it is considered an investment in gold. GST must be paid at the time of purchase and capital gains tax must be paid at the time of sale. Therefore, understand the tax impact before investing in gold so that you can accurately estimate returns later. Question – What is the best time to buy gold? Answer – Gold is a long-term investment, so it’s better to buy gradually rather than trying to time it. If you are buying gold for investment, it’s wise to invest small amounts monthly or quarterly like an SIP. This reduces the impact of price fluctuations. For short-term purchases like weddings or festivals, keep in mind that prices increase during festive seasons and wedding seasons. Therefore, it’s beneficial to make purchases before these times. Market experts believe that gold prices rise when there is volatility or inflation in global markets. During such times, investors buy it considering it a safe haven. Question- Can gold be purchased in children’s names or joint names? Answer- Yes, absolutely. Gold, whether physical or digital, can be purchased in any name. In children’s names: You can buy gold in your child’s name, but parent’s KYC details need to be provided at the time of purchase. Joint names: Gold can be purchased jointly in the names of husband-wife or two family members. This arrangement remains more secure from an investment perspective. Many platforms offer this facility in digital gold as well, although the account is opened in one person’s name only. This keeps the investment transparent and prevents future issues related to heirs or ownership. ​