Tips to Buy Gold This Diwali 2025
With the vibrant festivities of Diwali approaching, the allure of gleaming gold attracting many eager buyers , blends a cultural tradition with investments. So before you make up your mind to make a trip to the jewellery shop of your choice for Diwali shopping for gold, it's crucial to ensure that your gold purchase is not solely a beautiful addition to your collection but a smart investment. You need to be mindful of less making charges on gold jewellery as it can significantly impact your overall cost. In this blog shall try to give you essential tips to buy gold this Diwali 2025 helping you with budget-friendly insights as you make the most of this cherished custom.
Why Buying Gold This Diwali is Auspicious
Buying gold in Diwali has been an age-old tradition that blends cultural faith with financial wisdom. On Dhanteras, the first day of the festival, people across India buy gold as it is believed to bring prosperity, wealth, and good luck into the household. Families consider it a sacred ritual, symbolising both security and blessings for the year ahead.
Beyond tradition, buying gold in Diwali also makes practical sense. Gold has always been seen as a safe-haven investment, protecting wealth during inflation or economic uncertainty. Whether in the form of coins, jewellery, or digital gold, it holds long-term value and can be easily liquidated in times of need. Thus, purchasing gold this festive season is not just about following customs—it is also a thoughtful financial move that aligns emotion, culture, and smart investment.
Read more: Income Tax on Gold
Understanding Gold Purity and Hallmarking
When exploring tips to buy gold this Diwali, the first step is to understand purity and hallmarking. Gold is sold in different karatages, and each determines its purity and durability:
- 24K Gold – 99.9% pure, bright yellow, usually used for coins and bars (too soft for jewellery).
- 22K Gold – 91.6% pure, commonly used for jewellery; durable yet valuable.
- 18K Gold – 75% pure, often mixed with other metals; popular for designer jewellery.
BIS Hallmarking is a must-check before you buy gold in Diwali. It certifies authenticity and assures buyers that the metal has been tested for purity. Hallmarks usually include:
- BIS logo
- Purity in karats (e.g., 22K916)
- Assaying and hallmarking centre’s identification mark
- Jeweller’s unique identification
- Always insist on BIS hallmark jewellery.
- Verify the stamp under good lighting or with a magnifier.
- Request a purity certificate for high-value purchases.
By checking hallmarking carefully, you protect yourself from fraud and ensure the gold retains maximum resale value.
Types of Gold to Consider Buying This Diwali
If you’re wondering what type of gold to buy in Diwali, here are the most popular options:
- Jewellery – Traditional and symbolic, jewellery makes an emotional purchase and is perfect for festive wear or gifting. However, making charges increase the cost.
- Gold Coins – Available in 1gm, 5gm, 10gm options, these are ideal for rituals or gifting. They have low making charges and higher resale value.
- Gold Bars – These are considered to be a pure investment option, usually in 20gm or 50gm sizes, with negligible making charges. Best suited for those looking at long-term wealth storage. Best suited for those looking at long-term wealth storage.
- Digital Gold – A modern option where you can buy fractions of gold online and store it virtually. It offers flexibility but requires trusted platforms.
- Gold ETFs (Exchange Traded Funds) – Traded like shares on the stock market, ETFs are perfect for investors seeking exposure to gold without physical storage.
- Sovereign Gold Bonds (SGBs) – Issued by the RBI, these come with interest income (2.5% per year) along with the benefit of gold price appreciation. Ideal for long-term investors.
Each product has its own strength. Jewellery and coins for tradition and gifting, bars and ETFs for investment, and SGBs for wealth growth. Choose based on your goal this festive season.
Timing Your Purchase: Is Diwali the Best Time to Buy Gold?
Many buyers wait for Diwali assuming gold prices will drop sharply, but that’s often a misconception. Gold prices in Diwali are influenced by global market trends, currency fluctuations, and seasonal demand. The festive surge usually pushes demand—and sometimes prices—slightly higher.
Instead of waiting for a “perfect price,” focus on your intent. If you’re buying gold in Diwali for tradition or gifting, the cultural significance outweighs minor price movements. For investment purposes, experts suggest staggered buying. In other words, purchasing small quantities over time to balance price fluctuations.
In short, there is no “best day” to buy gold in Diwali. What matters is buying from a trusted source, ensuring purity, and aligning your purchase with your financial and emotional goals.
Frequently Asked Questions
Both coins and jewellery serve different purposes, and your choice depends on intent. If you are looking for investment, gold coins are better as they carry lower making charges, higher purity, and better resale value. They are also widely preferred for rituals on Dhanteras. Jewellery, however, is unmatched for its cultural significance, festive wear, and emotional value. Many families buy ornaments during Diwali as an auspicious tradition and also as heirlooms that can be passed down through generations.
Verifying purity is one of the most important tips to buy gold this Diwali. Always check for the BIS hallmark symbol, which certifies that the gold has been tested for purity. The hallmark includes details like karat (e.g., 22K916), jeweller’s identification, and the assaying centre mark. Use a magnifying glass or good lighting to read the stamp. For expensive purchases, insist on a purity certificate from the jeweller. These steps ensure authenticity and protect your investment at the time of resale.
It’s a common belief that gold prices fall during Diwali, but that’s not always true. Gold rates depend on international factors such as currency fluctuations, crude oil prices, and global demand, not just Indian festivals. During Diwali season, there is a sharp increase in demand, which may keep prices firm or even slightly higher. Instead of waiting for a dip, it’s smarter to buy based on your budget and tradition. For investments, consider buying gradually or through options like digital gold or gold ETFs.
When you buy gold this Diwali, always collect a proper bill that clearly mentions the purity (karat), net weight, making charges, and GST applied. This bill acts as proof of purchase and is essential during resale or exchange. Additionally, request a BIS hallmark certification for jewellery and coins to verify purity. As far as coins, bars, or high-value purchases are concerned, ask for a certificate of authenticity. These documents safeguard your interests, prevent disputes, and ensure your gold retains its full value in the future.
Making charges significantly increase the cost of gold jewellery, as they cover the labour and craftsmanship involved. They can range anywhere from 5% to 25% of the gold’s base price, depending on the design. The good news is that these charges are often negotiable, especially if you’re buying during festive offers or making larger purchases. To minimize costs, opt for simple designs, coins, or bars that have negligible making charges. Always compare rates across jewellers before finalizing.
Diwali includes a five-day festival which begins with Dhanteras, and as the word may refer, gold plays a key role in the story. In mythology, there is a story of King Hima whose son was saved from death by snake bite as he got distracted by a pile of gold . People buy gold on Dhanteras to ensure good luck and it stems from this story.
Disclaimer : The information in this blog is for general purposes only and may change without notice. It does not constitute legal, tax, or financial advice. Readers should seek professional guidance and make decisions at their own discretion. IIFL Finance is not liable for any reliance on this content. Read more
