Gold ETF vs. Physical Gold: Which Investment Shines Brighter for Returns?

• Gold prices reached an all-time high by January 2026, with 24-carat gold at ₹1,43,000-₹1,44,000 per 10 grams, driven by global economic instability and inflation.
• Physical gold (jewelry, coins, bars) incurs high making charges (10-25% for jewelry), premiums (3-8% for coins/bars), and 3% GST, significantly reducing potential profits upon resale.
• Gold ETFs track physical gold prices, require a demat account, and involve no making charges, GST, or storage risks, only a small transparent expense ratio (0.5-1% annually) and minor brokerage fees.
• Historically, Gold ETFs have yielded 12-15% returns over 10 years, compared to 8-10% for physical gold, due to lower associated costs and better resale value.
• While jewelry offers aesthetic value, for investment purposes and higher long-term profits, Gold ETFs or Sovereign Gold Bonds (SGBs) are superior due to lower costs, ease of trading, and security.

Why It Matters: For higher long-term profits and lower costs, Gold ETFs are a superior investment to physical gold jewelry.