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The recent increase in import duty on gold from 6% to 15% (10% basic customs duty + 5% AIDC) from 13th May 2026 will bear both positive and negative consequences for investors, but it will be primarily positive.

Existing Holders: This is great news. The more expensive the landed value, the more expensive domestic prices will be, and the more expensive will be the value of physical gold, coins, and jewelry that you already own. The gold futures traded in Mumbai have turned over-the-counter and have taken a hit to their neck already.

New buyers will find buying physical gold and jewelry will cost more, as jewelers will pass on the additional duty. This could depress these prices in the near term and help them rise in the medium to long term.

Investment Advice:

• Use paper gold options such as Gold ETFs and Sovereign Gold Bonds (SGBs) to save on the cost of importation and benefit from tax advantages.
• The decision is an attempt to curb forex outflows, and until now, from a historical perspective, it favored premiums domestically. AD sector.

In aggregate, the duty tax on gold will make it more attractive to long-term investors as an inflation hedge and will deter a person from buying gold in order to use it for consumption now. Experts recommend that investors must continue investing in SIPs of digital gold in the ongoing uncertainty in the world.