On Dhanteras of 2026, the gold price fell by nearly 1.8 percent. While the decline brings relief to buyers who are looking forward to making purchases on the occasion, the experts believe that one must consider many other factors apart from the fall in the price.
According to GoodReturns, 24-carat gold was quoted at ₹1,43,460 per 10 grams at 11:39 AM on Friday, down ₹2,560 from the previous session. Gold futures on the Multi Commodity Exchange (MCX) also fell 1.35% to ₹1,42,153.
Prices varied across markets and pricing sources. ETV Bharat cited an All India Bullion Association rate of ₹1,48,800 per 10 grams for 24-carat gold in Delhi, including taxes.
The decline comes during an unusually volatile period for precious metals, raising an important question for Dhanteras buyers: should they purchase physical gold, invest through exchange-traded funds or consider silver instead?
Gold’s Recent Performance Raises Questions
In 2026, gold has seen some considerable fluctuations in price following the achievement of a record price of nearly $5,600 per ounce in January. The correction in silver prices is even more pronounced, having fallen more than 55% since hitting a record price above $100 per ounce.
Despite the recent weakness, historical returns show why precious metals continue to attract long-term investors.
Data from the India Bullion and Jewellers Association (IBJA), compiled by GoodReturns, indicates that gold delivered approximately 6.3% returns over the one-year comparison period, while silver gained around 6.4%.
Gold had gained by about 129% in three years while silver had gained by 156%. In five years, gold gained by 175% while silver gained 224%.
The one-year comparison uses November 2, 2026, prices rather than the latest Dhanteras quotations.
These figures highlight the difference between short-term price movements and longer holding periods, although historical gains do not guarantee future returns.
Gold Coins, Jewellery or ETFs: Which Is Better?
For consumers purchasing gold this Dhanteras, the purpose of the purchase could be more important than the immediate price movement.
Jewellery remains a traditional choice for personal use, weddings and gifting. However, making charges and other expenses can substantially affect the final cost. These charges are generally not recovered when the jewellery is sold.
For investors interested primarily in gold price exposure, gold exchange-traded funds (ETFs) provide another option.
Gold ETFs are regulated investment products that allow investors to participate in gold price movements without personally storing the metal. They also avoid the making charges associated with jewellery purchases.
Kinjal Shah of the Bombay Chartered Accountants’ Society recommends allocating around 10% to 15% of an investment portfolio to gold, primarily through regulated products.
However, digital gold purchased through mobile applications presents a different risk profile.
SEBI warned in 2025 that digital gold products operating outside its regulatory framework expose investors to significant counterparty and operational risks.
Shah also highlighted that digital gold purchases attract 3% GST, while direct investments in gold ETFs and electronic gold receipts do not carry the same purchase-level tax.
Unlike exchange-traded products, digital gold may also restrict investors to selling their holdings back to the issuing company.
Should Investors Consider Silver Instead?
Silver’s stronger long-term performance may attract buyers seeking higher returns, but the metal has also demonstrated greater price volatility.
Narvekar recommends treating gold as the main precious-metal allocation while keeping silver as a smaller supplementary investment for those willing to accept additional risk.
Consumers purchasing physical silver should also pay attention to quality certification.
The BIS Director-General Sanjay Garg states that although a six-digit code named Hallmark Unique Identification (HUID) is mandatory for hallmarking silver objects, silver hallmarking itself is voluntary.
How Much Further Could Gold Prices Move?
Market analysts have offered differing projections following the correction in precious-metal prices.
Religare Broking has suggested accumulating gold around ₹1.30 lakh to ₹1.35 lakh per 10 grams, identifying ₹1.21 lakh as an important support level.
Motilal Oswal analyst Manav Modi favours buying during price declines and has indicated a short-term target of ₹1.48 lakh.
Meanwhile, SMC Global’s Vandana Bharti believes precious metals could be approaching a market bottom.
Several experts favour purchasing gold in stages rather than committing the entire investment amount at one price.
What Dhanteras Buyers Should Check Before Purchasing
Consumers planning to buy physical gold should compare quotations from multiple jewellers, particularly because the final cost can differ depending on purity, making charges, taxes and other fees.
A detailed purchase invoice should clearly mention the metal’s weight, prevailing rate, making charges, wastage charges where applicable and GST.
Buyers should also verify BIS hallmarking and the relevant purity markings, including the 916 designation for 22-carat gold jewellery, along with the HUID where required.
For those buying gold mainly for investment purposes, products that are regulated, like ETFs, could prove to be a better option than jewelry. People looking for physical gold for more traditional reasons might find certified coins and jewelry more appealing.
The latest price decline may create an opportunity for buyers who had postponed their purchases, but it does not establish that gold has reached its lowest level.
With one-year returns remaining modest compared with longer-term gains, the decision to invest should depend on financial goals, costs and risk tolerance rather than the festival-day price movement alone.
For Dhanteras 2026, the more important decision may not be whether gold is cheaper today, but whether the form of gold being purchased is appropriate for the buyer’s needs.
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