Gold Price in India

How gold is bought in India

India is one of the two largest gold markets on earth, and buying habits here are unlike anywhere else. Jewelry is overwhelmingly 22-karat (marked “916”), prized for its deep yellow colour and its resale value — for millions of households a gold necklace is both an ornament and a savings account. Rates are usually quoted per 10 grams or per tola rather than per gram, a convention that dates back generations.

When you buy jewelry, the sticker price is more than the metal: jewelers add a “making charge” for craftsmanship, typically ranging from around 8% to 25% of the gold value depending on the design and the shop. For pure investment, Indians increasingly turn to 24K coins and bars, government Sovereign Gold Bonds, and digital-gold apps, which avoid making charges entirely.

Purity and the BIS hallmark

Indian hallmarking is run by the Bureau of Indian Standards (BIS). The fineness stamp tells you the purity: “916” is 22K (91.6% pure), “750” is 18K, and “999” is 24K — see the full gold purity chart for how each karat compares. Since 2021 every hallmarked piece must also carry a unique 6-character alphanumeric HUID (Hallmark Unique ID), which you can verify in the BIS Care app.

Because purity directly sets value, always check for the BIS triangle mark and the HUID before buying, and be clear whether a quoted rate is for 22K or 24K — the two differ by roughly 8% in metal value.

Why the India price is higher than the global rate

India imports the vast majority of the gold it consumes, so the local price is the international spot price converted into rupees and then lifted by import duty and 3% GST. When the rupee weakens against the US dollar, gold gets more expensive in India even if the dollar price is flat — which is a big reason local prices can rise on a quiet global day.

On top of that benchmark, festival and wedding-season demand can add a further premium at the retail counter, especially around Dhanteras and the spring wedding months.

Gold, weddings and festivals

Few countries weave gold so tightly into life events. It is central to weddings — gifted as streedhan to the bride and worn across elaborate bridal sets — and buying is considered auspicious on Akshaya Tritiya and Dhanteras, the two biggest gold-buying days of the year. Regional tastes vary: the south leans toward pure-looking 22K yellow gold, while metros increasingly buy 18K for modern, diamond-set designs.