INVC NEWS | Personal Finance : Buying gold on Dhanteras is a long-standing tradition in India, but the way people purchase and hold the precious metal is changing. Alongside jewellery, coins and bars, investors now have access to digital platforms that connect gold purchases to exchange-traded contracts and physical delivery.
One such option is Gold Vault by Dhan, which allows users to buy physical gold and silver through contracts traded on the Multi Commodity Exchange of India (MCX). After settlement, the purchased bullion is credited to a Commodity Receipts Information System (ComRIS) account and stored in an accredited vault. Users can also request physical delivery at their registered address.
The model aims to combine exchange-linked pricing with secure storage and doorstep delivery. However, Gold Vault is not simply a facility for buying any amount of digital gold. It operates through MCX contracts, has specific purchase denominations and involves several charges.
Here is how the facility works, what purity standards apply, and what investors should consider before using it this Dhanteras.
60-Second Brief
- Platform: Gold Vault by Dhan
- Exchange: Multi Commodity Exchange of India (MCX)
- Minimum gold denomination: 1 gram through the Gold Petal contract
- Other gold options: 8 grams, 10 grams, 100 grams and 1 kilogram
- Purity: 999 for selected smaller contracts and 995 for 100-gram and 1-kilogram contracts
- Storage: Accredited vaults after physical settlement
- Delivery: Home delivery can be requested after settlement and vault credit
- Important costs: GST, exchange charges, settlement, packaging, storage and shipping fees
What Is Gold Vault?
Gold Vault is a feature on the Dhan investment platform that allows users to purchase physical gold and silver at prices linked to MCX contracts.
Unlike a conventional jewellery purchase, the transaction takes place through an exchange-traded commodity contract. Once the contract is settled, the physical bullion is credited to the user’s ComRIS account and stored in an accredited vault.
The facility is designed to address some common concerns associated with owning physical gold, including storage, security and access to standardised purity.
Ansh Varma, owner of AC Jewellers in Karol Bagh, New Delhi, says exchange-linked pricing and defined contract specifications can offer buyers a more transparent way to access physical bullion. However, investors should compare the complete purchase cost rather than looking at the displayed gold price alone.
How Does Gold Vault Work?
The buying process involves several stages:
1. Activate Gold Vault
Users first activate the Gold Vault facility through the Dhan app. A ComRIS account is automatically created as part of the process.
2. Select a Gold Contract
The user chooses from the available MCX gold denominations, such as Gold Petal, Gold Guinea, Gold Ten, Gold Mini or the 1-kilogram Gold contract.
3. Place an Order
The order is executed through the relevant MCX contract. The transaction is subject to the applicable exchange and settlement process.
4. Physical Settlement
After settlement, the gold is credited to the user’s ComRIS account. This is a commodity receipt-holding account that records the bullion received after settlement. It performs a role comparable to a demat account for securities, although it is a separate system.
5. Secure Storage or Home Delivery
The bullion is stored in an accredited vault. Users can subsequently request physical delivery to their registered address, subject to the platform’s delivery process and applicable charges.
Gold Purity and Available Denominations
Purity is a key consideration when purchasing gold. MCX contracts specify quality standards for different denominations.
The gold options listed by Dhan include:
- Gold Petal: 1 gram, with 999 purity
- Gold Guinea: 8 grams, with 999 purity
- Gold Ten: 10 grams, with 999 purity
- Gold Mini: 100 grams, with 995 purity
- Gold: 1 kilogram, with 995 purity
The 999 standard represents 99.9% purity, while 995 represents 99.5% purity. These specifications are based on the respective MCX contract standards.
The smallest listed gold denomination is one gram. However, this does not mean users can purchase gold worth any amount they choose.
Key Benefits of Gold Vault
1. Exchange-Linked Pricing
Gold Vault uses MCX-linked prices, giving buyers a reference based on exchange-traded market rates rather than relying solely on individual retail quotations.
2. Physical Bullion Ownership
After the settlement process, the gold is credited to the user’s ComRIS account. This is different from simply holding an instrument that tracks gold prices without physical settlement.
3. Secure Storage
The purchased bullion is held in an accredited vault rather than being kept at home. This can reduce the burden of arranging personal storage and managing household security.
4. Defined Purity Standards
MCX contracts specify purity requirements for different gold denominations. This gives buyers a standardised quality reference.
5. Home Delivery Option
Users can request physical delivery after the gold has been settled and credited to the vault. This can be useful when they want to take possession of the metal for personal use, gifting or another purpose.
6. Transparent Price Reference
Because the purchase is linked to MCX contracts, users can track exchange prices through the platform. This can make price comparison easier, although the final cost will include additional charges.
What Are the Charges? The Cost Goes Beyond the Gold Price
This is one of the most important points investors should check before buying.
Dhan’s published fee schedule lists several costs that can apply to a purchase:
- Gold GST: 3%
- Brokerage: ₹20 per order under the standard published schedule
- Exchange charges: 0.0021%
- SEBI charges: 0.0001%
- Stamp duty: 0.002%
- Physical settlement charges: Approximately 0.1%
- Packaging charges: Depend on the selected denomination
- Vault charges: Annual storage fees
- GST on applicable charges: 18%
- Home delivery: Shipping charges based on the delivery location
- Premium adjustment: May apply, where relevant
Dhan’s support information also describes an upfront amount provisionally equivalent to 5% of the bullion cost that may be blocked to cover charges. The actual charge calculation and final amount should be checked in the app before placing an order.
What About the Dhanteras Zero-Brokerage Offer?
Dhan announced a festive zero-brokerage offer for Gold Vault purchases made between October 19 and November 13, 2026.
However, the offer conditions should be read carefully. The brokerage benefit is linked to the relevant contract’s expiry and completion of physical settlement, subject to the applicable terms. It should not be confused with an offer that removes every purchase-related cost.
GST, storage, settlement, packaging and other applicable charges may still affect the total expense. Investors should check the offer conditions and transaction details before buying.
What Are the Limitations and Risks?
Gold Vault offers a different route to owning physical bullion, but it may not suit every buyer.
1. No Flexible Small-Value Purchases
Unlike some digital-gold services that allow users to invest a few hundred rupees, Gold Vault works through fixed MCX contract denominations. The smallest listed gold option is one gram.
2. Additional Costs Can Affect the Final Price
The displayed exchange price is not necessarily the complete cost of ownership. GST, settlement, packaging, storage and delivery fees should all be included when comparing alternatives.
3. Contract and Expiry Conditions Matter
Gold Vault uses MCX futures contracts as part of its purchase and settlement process. Users should understand the selected contract, expiry date, settlement requirements and the amount of money that may be blocked.
4. Gold Prices Can Fall
Exchange-linked pricing does not protect investors from market losses. If gold prices decline after purchase, the market value of the holding may also fall.
5. Physical Delivery Involves Extra Steps
Home delivery is not the same as receiving a coin immediately after tapping the buy button. The contract must first complete the required settlement process, after which the user can initiate delivery and pay applicable shipping charges.
6. It May Not Suit Buyers Who Want Jewellery
Gold Vault is primarily a way to acquire bullion. Buyers who want ornaments for a Dhanteras puja, wedding or personal use may still prefer purchasing jewellery from a jeweller, where design, making charges and immediate possession are relevant considerations.
Who Should Consider Gold Vault?
Rajiv Varma, owner of Lal Sons, says the facility may interest people who want exposure to physical gold without keeping it at home and who are comfortable buying through exchange-linked contracts.
It may be worth examining for investors who:
- Want to own physical bullion rather than only track gold prices.
- Prefer vault storage to keeping gold at home.
- Understand the contract and settlement process.
- Are comfortable with the available denominations.
- Have calculated the total purchase and storage costs.
It may be less suitable for people who want to invest very small amounts regularly, need immediate physical possession or are unfamiliar with commodity contracts.
Gold Vault vs Traditional Gold Buying: What Is the Difference?
Traditional jewellery purchases provide immediate physical possession and allow buyers to select designs, but the final bill may include making charges, wastage and other retail costs.
Gold Vault offers exchange-linked pricing, standardised contract specifications and vault storage. However, it has its own set of charges and a settlement process that buyers must understand.
The two options serve different purposes. A household buying jewellery for a festival or wedding may value design and immediate possession, while someone seeking bullion ownership without home storage may want to examine the exchange-linked route.
What Should Investors Check Before Buying?
Before placing an order, investors should:
- Confirm the exact MCX contract and its expiry date.
- Check the applicable purity and quantity.
- Calculate the complete cost, including GST and all platform and exchange charges.
- Review the annual vault fee and home-delivery charges.
- Understand the settlement process and the funds required.
- Read the conditions of any festive brokerage offer.
- Consider whether physical bullion or jewellery better matches their actual requirement.
Bottom Line
Gold Vault by Dhan offers an exchange-linked route to buying physical gold, with the bullion credited after settlement and stored in an accredited vault. Its main attractions are MCX-linked pricing, specified purity standards, secure storage and the option of home delivery.
But it is not a zero-cost alternative to buying gold from a jeweller. Fixed contract denominations, taxes, storage fees, delivery costs and contract-related conditions all matter.
For Dhanteras buyers, the sensible approach is to compare the final cost and understand the settlement process before investing. The right choice depends on whether the priority is jewellery, immediate possession, small-value investing or holding physical bullion securely.
