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Is it right or wrong to invest in gold after the GST cut? Know what experts say.
Siddhi Jain | September 11, 2025 1:15 AM CST

After the reduction in GST, the effect is being seen on the gold and silver markets. In such a situation, the question comes in mind of the people whether this is the right time to invest in gold or not? Know what the experts think.

The world may be giving more importance to the stock market, mutual funds or digital methods of investment. But the middle class in India still considers gold as the most reliable means of investment. Gold is not only used as jewelry. But it can also be converted into cash immediately when needed. This is the reason why its demand increases further during the festival and wedding season.

Now the government has announced a cut in GST rates. This will come into effect from 22 September 2025. Its direct impact is visible on the prices of gold. Now the question is going around among the common people and investors whether this is the right time to buy gold or it would be better to wait. Let us tell you what the experts think about this.

Effect of GST cut on gold

The government has reduced tax on many products, due to which positive sentiment is being seen in the market. However, the GST rate on gold will remain 3% and the jewelry making charge will remain 5% as before. But the reduction in tax on other goods has had a direct impact on the pockets of investors and buyers.

The result was that the price of gold came down. On September 9, 10 grams of gold rose to Rs 110047 on the Multi-Commodity Exchange. In such a situation, the trend of investors is increasing a lot in this direction. Gold prices can see a further jump.

Will it be right to buy gold now?

At present, experts say that GST reduction has changed the market environment regarding buying gold. The willingness of investors to take risk has increased and there is a possibility of improvement in sales for companies as well. This time is considered right for those buying gold and silver.

Especially for those who were postponing investment for a long time. However, gold is an asset with short term fluctuations. Therefore, it is wise to buy it not for quick profits but for long term security and portfolio balance. Experts believe that 10 to 15% of the investment should be in gold. Currently the rates have come down. In such a situation, this can be the right time to buy.


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