Gold Coins vs Jewellery – Key Differences in Making Charges and GST You Must Know

For generations, Indian households have considered gold not just a precious metal but a symbol of financial security and stability. It is often the first choice for long-term savings, festive purchases, or emergency funds. However, one common dilemma buyers face is whether to invest in jewellery or gold coins . While jewellery carries cultural significance and emotional value, gold coins are often the smarter option for those who view gold primarily as an investment . The key difference lies in making charges , Goods and Services Tax ( GST ), and resale value.

Why Gold Coins Have an Edge Over Jewellery

When buying jewellery, making charges can significantly inflate the purchase cost. These charges, usually between 10% and 20% of the gold price, are non-recoverable. This means that when you resell jewellery, you will only receive the value of gold content and not the money spent on craftsmanship.

In contrast, gold coins are much simpler. Their making charges are typically around 5%, which makes them more cost-effective. Since coins are valued purely for their gold content, they do not carry the same design-related premiums as jewellery. This makes them easier to sell and closer in value to the prevailing gold price.

Making Charges and GST: A Closer Look

To understand the cost implications, let’s consider some real market examples.

Tanishq Gold Coin Example
On September 29, 2025, Tanishq listed a 10-gram, 22-carat gold coin for ₹1,14,909. Here’s the breakdown:

• Gold price: ₹1,06,250
  
  
• Making charges: ₹5,312.50 (around 5% of gold price)
  
  
• GST: ₹3,346.88 (3% applied on gold price + making charges)
  
  

This means buyers pay around ₹8,600 above the actual gold value due to making charges and GST. While it seems like an additional cost, it is still considerably less than what one would pay for jewellery.

PC Jeweller Gold Coin Example
On the same date, PC Jeweller listed a 1-gram, 24-carat gold coin at ₹12,753. The cost structure was as follows:

• Gold price: Approx. ₹11,740
  
  
• Making charges: ₹639 (slightly over 5%)
  
  
• GST: ₹374 (3% on gold price + making charges)
  
  

Here too, the making charges were close to 5%, proving that coins remain more affordable compared to jewellery where charges often cross 10–15%.

GST on Gold Purchases

GST at 3% is mandatory on all gold purchases, whether coins or jewellery. However, since coins have lower making charges, the GST amount also remains comparatively lower. This reduces the overall premium paid on top of the gold value, making coins more investment-friendly.

Resale Value: The Real Differentiator

The most significant advantage of coins becomes evident at the time of resale.

• Jewellery resale: Buyers often lose 10–20% of value immediately since making charges are non-recoverable. Some jewellers may also deduct extra charges depending on wear, tear, or design.
  
  
• Coin resale: Coins are valued closer to market rates as they are primarily traded for their gold content. With minimal making charges involved, investors lose far less at the time of liquidation.
  
  

This makes gold coins a liquid and profitable option for those seeking returns rather than ornamental satisfaction.

Key Takeaways for Buyers

• Compare making charges before buying and choose jewellers who keep it around 5% for coins.
  
  
• Remember that GST is unavoidable—you will pay 3% whether purchasing jewellery or coins.
  
  
• For investment purposes, gold coins are more practical as they offer higher resale value.
  
  
• If emotional or cultural value is a priority, jewellery may still hold appeal despite higher costs.
  
  

Final Word

Gold continues to be one of the most trusted assets in Indian households. For those who value financial returns and investment security, gold coins clearly emerge as the better choice compared to jewellery. With lower making charges, reduced GST burden, and better resale value, coins ensure that investors do not lose a significant portion of their money during resale.

So, the next time you plan to buy gold, look beyond traditional jewellery and consider coins as a smarter, cost-effective, and investment-friendly alternative.