What Is the IBJA Gold Rate?
The IBJA (India Bullion and Jewellers Association) rate is India's official bullion reference price, published twice every business day for physical gold in Mumbai.
Every jewellery shop in India uses the IBJA rate as the base price for selling gold. The IBJA surveys leading bullion dealers in Mumbai every morning and evening and publishes the weighted average spot price per gram. Banks and NBFCs use this rate to value gold pledged as collateral for loans, per RBI guidelines.
The IBJA rate is different from the MCX (Multi Commodity Exchange) gold futures price. MCX is a derivative contract that expires monthly; IBJA is a physical bullion price for immediate delivery. For purchasing jewellery or pledging gold for a loan, the IBJA rate is the relevant benchmark.
24K vs 22K vs 18K Gold: Purity, Price, and Use
Gold purity is measured in karats. 24K is 100% pure gold and is the international benchmark. All other purity levels are priced as fractions of the 24K spot price.
| Karat | Fineness | Common Use | Price per gram | Price per 10g |
|---|---|---|---|---|
| 24K | 999.9 | Coins, bars, investment | Set up live rates | - |
| 22K | 916 | Standard jewellery (BIS hallmark) | Set up live rates | - |
| 18K | 750 | Diamond-set jewellery | Set up live rates | - |
| 14K | 585 | Export jewellery, fashion pieces | Set up live rates | - |
BIS hallmarking under the Bureau of Indian Standards mandates that all gold jewellery sold in India must be either 22K or 18K with a hallmark. Unlicensed jewellers occasionally sell 20K or mixed-karat pieces at 22K prices. Always check the BIS hallmark before purchasing. To verify market value, multiply the net gold weight by the purity factor (22K = 0.9167, 18K = 0.75) and the current per-gram rate above.
Gold Tax in India: Capital Gains on Gold Sale
Finance Act 2024 changed capital gains rules on gold, effective July 23, 2024. The holding period threshold remains 24 months; the tax rate changed to 12.5% flat without indexation for most cases.
| Holding Period | Type | Purchase date | Tax rate | Indexation |
|---|---|---|---|---|
| Less than 24 months | STCG | Any | Slab rate | Not applicable |
| 24 months or more | LTCG | Before July 23, 2024 | 12.5% or 20% (lower) | Available for 20% option |
| 24 months or more | LTCG | On/after July 23, 2024 | 12.5% | Not available |
| 8 years (SGB maturity) | Exempt | Any SGB | 0% | Not applicable |
For gold purchased before July 23, 2024 and sold after, you can choose between 12.5% without indexation (new rate) or 20% with indexation (old rate). Choose whichever produces lower tax. For pre-July 2024 purchases, compute indexed cost as: purchase price x (CII of sale year / CII of purchase year), then multiply the gain by 20% and compare with 12.5% of unindexed gain.
Sovereign Gold Bond vs Physical Gold
Sovereign Gold Bonds (SGBs), issued by the Reserve Bank of India on behalf of the Government, track the gold price and pay 2.5% annual interest. For investors, they are superior to physical gold on almost every financial metric.
| Factor | SGB | Physical Gold | Gold ETF |
|---|---|---|---|
| Capital returns | Gold price linked | Gold price linked | Gold price linked |
| Interest income | 2.5% p.a. (taxable) | None | None |
| Tax at maturity | 0% (8-year hold) | 12.5% LTCG | 12.5% LTCG |
| Making charges | None | 8-25% of value | None (0.5% expense ratio) |
| GST | None | 3% on purchase | None |
| Storage risk | None (demat) | Locker required | None (demat) |
The 0% capital gains tax at SGB maturity is the defining advantage. On Rs 10 lakh invested in gold that doubles to Rs 20 lakh over 8 years, an SGB investor saves Rs 1.25 lakh in LTCG tax (12.5% on Rs 10 lakh gain) compared to holding physical gold.
Frequently Asked Questions
Disclaimer: Gold rates shown are sourced from MCX and international spot prices and may differ from local jeweller prices by Rs 50-300 per gram due to local association premiums and state taxes. All calculations on this page are indicative only and do not constitute financial advice. Consult a SEBI-registered investment adviser before making investment decisions.