SGBs Are Dead.
Digital Gold Is
Unregulated.

Gold ETFs are now the best option for most investors. SGBs are discontinued (no new series since Feb 2024), and secondary market SGBs lost their tax-free status from April 2026. Gold ETFs are SEBI-regulated, trade instantly on exchanges, and attract only 12.5% LTCG after 12 months. Top picks by cost: ICICI Prudential Gold ETF and Axis Gold ETF — both at 0.50% expense ratio. Avoid digital gold (unregulated, 8% break-even gap) and jewellery (10–25% making charge loss on day 1).

No new SGBs have been issued since February 2024. The Finance Minister confirmed no plans for new tranches — SGBs were too expensive for the government compared to regular bonds. You can buy existing SGBs on the secondary market (NSE/BSE), but from April 1, 2026, secondary market buyers must pay 12.5% capital gains tax at redemption. Only original subscribers who hold till maturity retain the tax-free benefit.

SEBI has explicitly warned that digital gold is unregulated — it's not classified as a security and isn't governed by SEBI or RBI. You also lose ~8% upfront: 3% GST on purchase + 3–5% buy-sell spread. Storage fees kick in after 1–5 years (varies by platform). There's no mandated third-party audit to confirm the gold actually exists in the vault. For regulated gold exposure, use Gold ETFs instead.

The standard advice is 5–10% of your total portfolio. But after gold's 77% run in 2025–26, many investors are at 15–20% without rebalancing. Gold is a hedge against inflation and currency depreciation, not a growth asset. If your gold allocation has drifted above 10%, consider selling some and rebalancing into equity or debt. Don't chase gold after a massive rally.

Gold ETFs are cheaper. Gold Mutual Funds (Fund of Funds) invest in Gold ETFs but add an extra layer of expense — typically 0.10–0.50% on top of the underlying ETF's expense ratio. Gold MFs don't need a Demat account (the only advantage), but you pay double fees for that convenience. If you have a Demat account, always choose the ETF directly.

No. Gold jewellery loses 15–30% of its value the moment you buy it. Making charges (10–25% of gold value), 3% GST on gold, and 5% GST on making charges mean you're underwater from day one. When you sell, the jeweller buys back at melt value only — zero refund on making charges. Buy jewellery because you want to wear it, not as an investment. For investment, use Gold ETFs.

Silver is interesting at the current gold-silver ratio of 171x — the historical average is 60–80x, meaning silver is relatively cheap vs gold. India imported $9.2 billion of silver in 2025 (↑44% YoY), driven by solar panel and EV manufacturing. But silver is 2–3x more volatile than gold. Limit silver to 2–5% of your portfolio. Use Silver ETFs (12.5% LTCG after 12 months) — avoid physical silver (3% GST + storage hassle).

Gold ETFs & Silver ETFs: 12.5% LTCG after 12 months. Below 12 months: slab rate. Physical gold (bars/coins/jewellery): 12.5% LTCG after 24 months. SGBs (original subscriber, held to maturity): ZERO tax on capital gains + 2.5% annual interest (taxed at slab). SGBs (secondary market buyer): 12.5% LTCG from April 2026. Digital gold: slab rate (no clear LTCG provision since unregulated). The 2.5% SGB interest is always taxable at slab rate.