Let’s be honest. In Nepal, gold isn’t just gold. It’s part of who we are. Whether it’s for a wedding, a festival, a baby shower, or just a special family moment, gold somehow always makes an appearance. It’s in our homes, passed down through generations, and tucked away in safes like a little treasure chest of pride and security.

For most of us, buying gold feels like a smart move. It’s something you can touch, hold, and keep close. And with the gold price in Nepal going up year after year, it almost seems like a guaranteed way to grow your money.

But here’s the thing nobody really talks about. In Nepal, buying gold is often more about emotional satisfaction rather than building wealth. It gives us peace of mind, but not necessarily the kind of returns we expect from an "investment."

So before you head to the jewellery shop thinking you’re making a solid financial move, let’s take a step back and look at the full picture. Because while the gold price in Nepal may be rising, that doesn’t always mean your wealth is growing along with it.

Buying Gold in Nepal Means Buying Jewellery (And That’s a Costly Investment Mistake)

When most people in Nepal think about investing in gold, the first thing that comes to mind is walking into a jewellery shop and buying a necklace, bangle, ring, and so on. But here’s where things start to go off track.

While it may feel like you’re investing in a valuable asset, the reality is that buying gold jewellery in Nepal is often more of an emotional purchase than a smart financial decision. Let’s break down why.

1. You Don’t Just Pay for Gold, You Pay a Lot More

When you buy gold jewellery in Nepal, you’re not just paying for the gold itself. There are multiple extra charges added on top of the base gold price, which significantly increase your total investment.

Here’s what typically goes into your final bill:

• Gold price per tola – This is the market rate you see quoted daily.
• Making charges – These are labor costs paid to the artisan who crafted the jewellery. Depending on the design complexity, this can range anywhere from 6 to 12 percent or even higher.
• Wastage charges – This is one of those extra costs that most people don’t really think about when buying gold. But it adds up. When a piece of jewellery is made, especially if it’s got a fancy or intricate design, a little bit of gold gets lost during the process. Some turn into dust, some stick to the tools. To make sure the final piece still weighs exactly 1 tola, the jeweller uses a bit of extra gold. And guess what? You end up paying for that too. That’s what they call wastage charges. It might not sound like a big deal, but it’s another way your total cost quietly climbs higher than the actual gold price in Nepal.

So, let’s say the current gold price in Nepal is Rs. 170,000 per tola. After making and wastage charges, your final price might easily shoot up to Rs. 185,000 or more per tola.

Now here’s the thing: you’ve already spent way more than what the gold is actually worth from day one. So before you can even think about making a profit, you’ll need to wait just to recover that extra amount you paid upfront. And that’s assuming the gold price keeps going up consistently, which, let’s be honest, doesn’t always happen.

2. You Lose Even More When You Try to Sell

This is where most people get a reality check.

When you decide to sell that gold jewellery later, the jeweller won’t care about how much you paid in making or wastage charges. In fact, they’ll completely disregard those costs during resale. You’re paid only for the raw gold content and its purity, not the craftsmanship or design.

So, all that extra amount you paid upfront? That’s a sunk cost, meaning it’s gone for good. And the situation gets worse when you consider what comes next.

3. Melting Charges Are a Hidden Resale Trap

Selling jewellery isn’t as simple as handing it over and getting the market rate. The gold shop will need to melt the jewellery to assess purity and reuse the gold, and this comes with yet another set of costs that most buyers are unaware of.

Here’s what typically happens:

• Melting charges – You’ll be charged for melting the jewellery and turning it back into raw gold. This fee is deducted from the total value of your gold.
• Purity deductions – If the jewellery is not 24-karat or if any impurities are found, the jeweller will deduct further from your final payment.

So let’s revisit the earlier example. You bought a tola of jewellery for Rs. 185,000. Even if the gold price in Nepal rises to Rs. 174,000 per tola, you might end up getting only Rs. 160,000 to Rs. 165,000 after all deductions.

That’s a huge gap, and despite a rising market price, you’ve still lost money. This is the harsh reality many gold buyers in Nepal face. The costs involved in buying and reselling gold jewellery are so high that they often cancel out any potential gain from a price increase.

Gold Price in Nepal Is High, But It Could Have Been Much Higher

If you’ve been keeping an eye on the gold price in Nepal lately, you’ve probably noticed it’s been shooting up like never before.

A Quick Look at Recent Prices:

• Chaitra 4, 2081: Gold hit a record-high of Rs. 176,000 per tola.
• Today: It’s still hovering close to Rs. 174,100 per tola, and that’s no small number.

It’s safe to say gold prices are at some of the highest levels we’ve ever seen.

But here’s the surprising part: even though these prices seem sky-high, they could have been a lot higher. Yes, really.

Let’s rewind to four months ago.

The Government’s Big Move

On Mangsir 11, 2081, the government cut the gold import tax from 20 percent to 10 percent.

This change brought instant relief to gold price in Nepal.

• Gold price dropped by a staggering Rs. 15,900 in a single day.
• It fell from Rs. 167,200 to Rs. 151,300 per tola, one of the sharpest single-day drops in recent memory.

What If That Tax Cut Never Happened?

Now imagine this. If the government hadn’t reduced the import tax, where would prices be today?

Given how prices have bounced back in just a few months, it’s not hard to believe that:

• The gold price in Nepal could have crossed Rs. 200,000 per tola by now.

That would have pushed gold even further out of reach for most regular buyers and middle-class families.

So yes, gold is expensive right now, but strangely, this is the "cheaper version" of what it could have been without that policy change.

This also shows that the gold price in Nepal isn’t just driven by global trends. Government decisions and tax policies play a huge role in what we pay at the jewellery shop.

The Bigger Issue: Nepali Investors Have No Alternatives

Nepal’s investment ecosystem is still underdeveloped. People don’t have easy or reliable options for wealth building.

Most people don’t choose gold because it’s the most profitable. They choose it because it’s the only thing that feels safe, simple, and accessible.

It’s easy to buy, doesn’t require paperwork or market knowledge, and fits naturally into our culture. But without better options, gold continues to be the default, even when the returns don’t justify the cost.

That’s exactly why the government should step in and make gold investing more practical and rewarding.

How Other Countries Do It Better: A Global Comparison

While we’re still mostly stuck with buying gold as jewellery in Nepal, other countries have come up with much better ways to invest in gold, ways that are smarter, easier, and actually more rewarding.

India’s Gold Sovereign Bonds (SGBs)

India launched Sovereign Gold Bonds (SGBs), where people invest in gold-linked government bonds, not physical gold.

• You earn 2.5 percent annual interest on your investment
• The bond value increases with the gold price in India
• No making charges or storage costs
• Tax-free maturity gains

It’s a perfect mix of safety, returns, and flexibility without dealing in physical jewellery.

What Other Countries Offer

Many countries around the world give people multiple ways to invest in gold, such as:

• Gold ETFs (Exchange-Traded Funds) – These are like mutual funds, but instead of investing in stocks, they invest in gold. You can buy and sell them easily through stock exchanges.
• Gold mutual funds – These are managed funds that invest in gold-related assets. Ideal for people who want to invest in gold but don’t want to handle the buying and selling themselves.
• Digital Gold Platforms – You can buy small amounts of gold online, even with just a few hundred rupees, and the company stores the gold for you.
• Certified gold bars and coins – These are pure gold pieces sold by licensed sellers or banks, with guaranteed weight and purity.

All these options are well-regulated, easy to access, and much more cost-effective than buying gold jewellery, something we still don’t have in Nepal.

What Needs to Change in Nepal’s Gold Investment Landscape?

Nepal needs a modern gold investment ecosystem, not just better jewellery designs. Here’s what must change: 

1. Promote Pure Gold Investing

• Make 24-karat gold bars and coins accessible through banks or licensed dealers.
• Encourage the public to differentiate between jewelry and investment-grade gold.
• Standardize gold pricing in the country and make daily gold price in Nepal transparent across regions.

2. Launch Gold Bonds and ETFs

• Nepal Rastra Bank should introduce Gold-Linked Savings Bonds similar to India’s SGBs.
• Stock exchanges like NEPSE must work on launching Gold ETFs, allowing investors to invest without physically buying gold.

3. Educate the Public

• Financial literacy programs should focus on investment tools and help people compare jewellery with digital or bond-based gold options.
• Compare the actual returns after factoring in gold price in Nepal, making charges, resale deductions, and taxes.

4. Regulate the Gold Market

• Make it mandatory for jewellery shops to provide purity certificates.
• Establish a system for standardized making charges and resale terms.
• Create a gold pricing board or standard council for more uniformity in the daily gold price in Nepal.

5. Introduce Tax Incentives

• Offer rebates on digital gold investments or gold bonds.
• Reduce capital gains tax for long-term gold investors.

6. Build Digital Gold Infrastructure

• Nepal Rastra Bank should create a regulatory framework to protect digital gold investors.
• Authorize fintech startups to innovate in gold savings and enable micro-investments linked to gold price in Nepal.

Real Talk: What Should You Do?

If you’re thinking about investing in gold in Nepal, ask yourself:

• Am I buying gold for tradition or return?
• Can I afford the making and resale charges?
• Is this the best use of my savings?

If you’re investing for future returns, we suggest you look beyond jewellery. 

Final Thoughts

Gold will always hold emotional and cultural value in Nepal, but that doesn’t automatically make it a smart investment. With high costs, hidden charges, and poor returns, gold, especially in the form of jewellery, often ends up being more of a tradition than a wealth-building tool.

The bigger issue is that most people turn to gold simply because they don’t have better alternatives. Real estate is too expensive, the stock market feels complicated, and bank savings offer little growth.

That’s exactly why the government should consider introducing paper gold options like Sovereign Gold Bonds or digital gold savings plans, just like India has. These tools can make gold investing more affordable, rewarding, and accessible for everyday people without the usual headaches of making charges or resale losses.

In order to help Nepali citizens build real financial security, the government needs to give them better ways to invest in what they already trust, starting with gold.

Additional Resources:

• Gold Price in Nepal Takes a Freefall: How Illegal Imports and Tax Loopholes May Have Contributed to This Drop!