Will gold and silver become cheaper after the budget?
Budget 2026: In India, gold is not just a metal but synonymous with security and tradition. But when the prices start touching the level of Rs 1.6 lakh per 10 grams, it starts becoming out of reach of the common man. At present, the prices of gold and silver are at historical highs. In such a situation, everyone’s eyes are fixed on the upcoming Union Budget 2026-27. People are hopeful that the government will make some announcements that will provide some relief to their pockets and make it easier to shop for weddings at home. Industry experts have also demanded many important changes from the Finance Ministry.
Why are the prices of gold and silver on fire?
First of all it is important to understand why prices have increased so much. In the international market, the price of gold has reached near $5,000 and silver near $100. According to experts, the main reason behind this is global tension and weakness of the rupee. Apart from this, a major reason is also being said to be ‘the dispute related to Greenland’, which has affected the supply chain and market sentiment. Due to these reasons, prices are skyrocketing in the domestic market, due to which both common investors and buyers are worried.
Burden on common man’s pocket, industry asks for relief
Rising inflation has severely squeezed the purchasing power of Indian families. Chetan Thadeshwar, MD of ‘Shringaar House of Mangalsutra Limited’ believes that the government should emphasize on increasing domestic consumption in Budget 2026. Their demand is that the import duty on gold should be made rational. If the tax structure improves and duties are reduced, the common customer will directly benefit from it. With the increase in demand, not only will the retail business shine, but new employment opportunities will also be created in the manufacturing and export sectors.
Will SGB scheme start again?
Buying gold does not just mean buying jewellery, but it is also an investment. Experts are strongly advocating the government to restart the ‘Sovereign Gold Bond’ (SGB) scheme. According to Jashan Arora, director of Master Trust Group, due to frequent changes in taxes and duties, prices suddenly jump, which shocks investors.
The SGB scheme was very popular among investors because the government offered 2.5% interest and also got tax benefits. It was closed in the year 2024, now there is a demand to restart it. Along with this, awareness campaigns and tax exemptions are also expected to promote digital gold, so that the gold kept in homes can be useful for the economy.
Appeal to reduce GST
When you buy jewellery, apart from the price of gold, you also have to pay making charges and GST. At present 3 percent GST is levied on jewellery. ‘All India Gem and Jewelery Domestic Council’ (GJC) has appealed to the government to reduce it to 1.25% or 1.5%. The organization’s argument is that if taxes are reduced, jewelery will be cheaper and people from the middle class and rural areas will be able to purchase more. This will also reduce the pressure of working capital on small jewelers and doing business will become easier.