Gold ETF Price Today, and the Cheapest Way to Own 10 g of Gold
Every gold ETF's NAV, the gold behind each unit, its price per gram and expense ratio; and jewellery vs coin vs ETF vs gold fund vs digital gold after all costs and tax.
Over 3 years with gold rising 8% a year, 10 g held through a gold ETF returns about 6.7% a year after costs and tax; 22K jewellery about 2.0%, because GST, making charges and resale deductions are lost the day you buy. The table below shows every gold ETF's price per gram and expense ratio, worked out from AMFI's NAVs.
The words on this page, explained simply
New to this? Here is what each term means, in plain English.
- Gold ETF
- A fund traded on the stock exchange where each unit is backed by a fixed amount of real 24K gold held in a vault. Its value moves with the gold price every day, which is how the calculator knows the previous evening's rate.
- Gold per unit
- How much 999 gold stands behind one unit of a gold ETF. It shrinks a little every day as the fund takes its fee, which is how the expense ratio is paid.
- Expense ratio (TER)
- The yearly cost of running a fund, taken out of its value a little every day. 1% means ₹1,000 a year on ₹1 lakh. Regular plans have a higher expense ratio because it includes the commission.
- Gold mutual fund (fund of funds)
- A mutual fund that puts your money into a gold ETF. You need no demat account and can invest small amounts monthly; you pay its own small fee on top of the ETF's.
- Digital gold
- Gold bought in small amounts through an app, stored for you in a vault. It carries 3% GST, the app's buying price is above its selling price, and it is not regulated by SEBI or RBI.
- Making charges
- What a jeweller charges for turning gold into jewellery, on top of the price of the gold. It changes with the design and the jeweller, so ask before you buy.
- GST on gold
- 3% on gold, coins and jewellery, charged on the whole bill including making charges: ₹3,000 on a ₹1 lakh bill. No GST when you, as an individual, sell your old gold.
- Long-term gain on gold
- Profit on gold held long enough: more than 12 months for a gold ETF, more than 24 months for physical gold, digital gold and gold funds. It is taxed at 12.5%; a shorter holding is taxed at your slab rate.
- Tax slab
- The income-tax rate for your income band. Dividends are added to your income and taxed at your slab rate.
A gold ETF is a fund listed on the stock exchange that holds 999 gold for you; each unit stands for a fixed, slowly shrinking amount of it. Its price follows the gold price, less a small yearly fee (the expense ratio). You need a demat account to buy one. A gold mutual fund (fund of funds) holds a gold ETF and needs no demat account; it adds its own small fee.
Physical gold costs more to own than its price suggests: 3% GST on everything, making charges on jewellery, and a deduction when you sell. The calculator below puts every way of owning gold on the same footing: what you pay today, what you get back after your holding period, and the tax on the gain.
Which way of owning gold costs least
10 g of gold at ₹14,000 a gram, held for 3 years while gold rises 8% a year, tax slab 20%. Example inputs: 12% making charge and a 2% deduction on resale for jewellery, a 3% premium and 2% deduction for a coin, a 3% buy-sell gap for digital gold, 0.1% dealing costs and a 0.35% expense ratio for the ETF, 0.55% a year in all for the gold fund.
| Route | You pay today | Gold you own | You keep after 3 years | Yearly return |
|---|---|---|---|---|
| Gold ETF | ₹1,40,140 | 10.00 g | ₹1,70,065 | 6.7% |
| Gold mutual fund (FoF) | ₹1,40,000 | 10.00 g | ₹1,69,283 | 6.5% |
| Digital gold (app) | ₹1,46,363 | 10.00 g | ₹1,70,295 | 5.2% |
| 24K coin or bar | ₹1,48,526 | 10.00 g | ₹1,69,794 | 4.6% |
| 22K jewellery | ₹1,47,938 | 9.16 g | ₹1,57,017 | 2.0% |
Over one year the order holds: an ETF held a year and a day already counts as long-term (12.5% tax), while physical gold, digital gold and gold funds need two years; inside that the gain is taxed at your slab rate.
How tax works on each
Since 23 July 2024, long-term gains on gold are taxed at 12.5% with no indexation. A gold ETF becomes long-term after 12 months because it is listed; physical gold, digital gold and gold mutual funds need 24 months. Before that, the gain is added to your income and taxed at your slab rate. GST paid when buying is part of what the gold cost you; it is not refunded when you sell.
Reading the gold ETF table
Each ETF unit is backed by a fixed amount of 999 gold, which shrinks a little every day as the fund takes its fee. Strota works out that amount for every ETF from RBI's official gold price on the days it last published one (the Sovereign Gold Bond redemption price, an average of IBJA's 999 rate), then divides the latest NAV by it. That gives each ETF's price for a gram of gold, and the cost of 10 g through it.
ETFs trade on the exchange at a price close to, but not exactly, their NAV, and you pay brokerage and a small spread. A lower expense ratio is the one difference that adds up over years.
Digital gold and Sovereign Gold Bonds
Digital gold is sold by apps and jewellers, backed by gold held with a vault partner. It is not regulated by SEBI or RBI, it carries 3% GST, and the app's buying price is above its selling price. Check both prices in your app and enter the gap in the calculator.
No new Sovereign Gold Bonds have been issued since February 2024. Bonds already issued trade on the exchange and pay 2.5% interest a year; held to maturity, the gain is tax-free.
Key takeaways
- GST, making charges and resale deductions make jewellery the costliest way to own gold.
- Gold ETFs and gold funds cost a fraction of a percent a year; an ETF needs a demat account.
- ETF gains are long-term after 12 months; physical, digital gold and gold funds after 24.
- Long-term gains on gold are taxed at 12.5% without indexation.
Frequently asked questions
Which is the cheapest way to own gold?
For most holding periods a gold ETF or a gold mutual fund: on the example on this page (3 years, gold up 8% a year) the best route returns 6.7% a year against 2.0% for jewellery, after costs and tax.
How much gold is in one gold ETF unit?
It differs by fund: most gold ETFs hold close to 0.008-0.01 g of 999 gold per unit, a few about 0.001 g. The table on this page shows each fund's figure, worked out from RBI's official gold price.
Is a gold ETF better than physical gold?
As an investment, usually: no GST, no making charges, no resale deduction, and long-term tax treatment after 12 months. Physical gold is the choice when you want to wear it.
Is digital gold safe?
It is backed by gold in a vault, but it is not regulated by SEBI or RBI, and you pay 3% GST plus the gap between the app's buy and sell prices.
How is tax calculated on gold ETFs?
Held more than 12 months, the gain is taxed at 12.5% without indexation; held 12 months or less, at your slab rate.