Best Alternatives to Physical Gold This Dhanteras 2026

Key takeaways

• Dhanteras 2026 is on Friday, 6 November. Diwali Muhurat Trading is on Sunday, 8 November.

• Jewellery carries 3% GST, 5% GST on making charges, and making charges you rarely get back. Gold ETFs and gold funds carry none of these.

• Sovereign Gold Bonds have had no new issues since February 2024. From 1 April 2026, SGBs bought on the exchange no longer get tax-free maturity.

• Digital gold is not regulated by SEBI, according to SEBI's own November 2025 caution.

• The best mix isn't all gold or no gold. It's a mix that protects first, then grows.

A tradition worth a second look

On Dhanteras evening, jewellery shops across India are full. Families queue for a coin, a chain or a pair of earrings, and the purchase goes into a locker with the hope that it will be there when it's needed.

That instinct, to set something aside for the future, is a good one. What's changed is the number of ways to act on it. This Wealthy blog looks at those ways: how to hold gold without the extra costs, and which other financial options can do the jobs families have long trusted gold to do. All of these financial options are available on Wealthy through your Wealthy Partner.

Why look beyond physical gold?

You pay 3% GST on the gold and 5% GST on making charges. Making charges are usually not recovered when you sell. Then there is purity to trust, locker rent to pay and deductions at resale.

There is also the question of balance. Many households already hold a large share of their savings in jewellery. Adding more each year concentrates wealth in one asset rather than spreading it.

Stored safe. Without the locker.

If the aim is simply to own gold, three SEBI-regulated products give you precious-metal exposure without making charges or storage. All three are available on Wealthy.

A Gold ETF is usually the leaner choice for someone with a demat account who will hold for more than a year. A gold fund suits those who prefer a monthly SIP without a demat account. Silver, also a Dhanteras favourite, moves more sharply than gold because industry drives most of its demand: about 657 million of the 1.13 billion ounces used worldwide in 2025, or roughly 58% (Silver Institute).

Physical gold vs the alternatives at a glance

Risk levels are general. Check each scheme's riskometer and offer documents before investing. Insurance GST: Department of Financial Services.

How to choose the right way to own gold

The best form of gold depends on why you are buying it.

• To wear, gift or use in the puja: physical gold is still the right choice. Buy only as much as you will use, and check the BIS hallmark.

• For pure gold exposure, held for a year or more: a Gold ETF is usually the leanest option. It turns long-term after 12 months and has no making charges, but you need a demat account.

• To invest a fixed amount every month: a gold mutual fund (FoF) lets you start a SIP without a demat account. Gains turn long-term after 24 months.

• For gold as one part of a balanced portfolio: a multi-asset allocation fund holds gold or silver alongside equity and debt, and the fund manager handles the mix.

• To add silver alongside gold: a Silver ETF or silver fund works the same way as its gold counterpart, but expect sharper price swings.

If you already hold SGBs from the original RBI issue, keeping them preserves their tax-free maturity. For new purchases, weigh exchange-traded SGBs and digital gold against the points in the next section.

Also look at how much gold the family already holds, jewellery included, before adding more. Your Wealthy Partner can help you decide how much gold, and in which form, fits your portfolio.

Two gold products to approach with care

Sovereign Gold Bonds. The last SGB tranche was issued in February 2024, and no new tranches are planned (Business Standard). Existing SGBs still trade on NSE and BSE. From 1 April 2026, however, tax-free gains at maturity apply only to investors who bought at the original RBI issue; gains on SGBs bought on the exchange are taxable (Value Research).

Digital gold. In November 2025, SEBI cautioned that digital gold is neither a security nor a regulated commodity derivative, so it falls outside SEBI's oversight and investor-protection mechanisms (SEBI). It also carries 3% GST, like physical gold.

Within SEBI's framework, gold can be held electronically through Gold ETFs, gold mutual funds, exchange-traded gold contracts and Electronic Gold Receipts (EGRs), which are receipts for physical gold stored in an exchange-approved vault that trade on the stock exchange.

How each option is taxed in 2026-27

These figures are for resident individuals, before surcharge and cess. No gold or silver product gets indexation.

SIF, PMS and AIF taxation depends on the strategy and structure. Tax rules change, so confirm your own case with a tax advisor.

In summary

Physical gold remains a meaningful part of Dhanteras. In 2026, though, jewellery and coins come with GST, making charges that are rarely recovered, storage costs and purity checks.

There are now simpler ways to own gold:

• Gold ETFs track the gold price with no making charges and turn long-term after 12 months.

• Gold mutual funds allow monthly SIPs without a demat account.

• Multi-asset allocation funds hold gold as one part of a balanced mix.

• Silver ETFs and silver funds add a second precious metal, with sharper price swings.

Two gold options need extra care this year. No new SGBs are being issued, and SGBs bought on the exchange have lost tax-free maturity from 1 April 2026. Digital gold remains outside SEBI's oversight.

The tradition of buying gold on Dhanteras still holds. What has widened is the choice of how to own it.

Disclaimer: This article is for information and education only and is not investment, tax or legal advice. Mutual fund investments are subject to market risks; read all scheme-related documents carefully. Investments in the securities market are subject to market risks; read all related documents carefully before investing. Insurance is the subject matter of solicitation. Past performance does not guarantee future returns. Information is as of October 2026 and may change.