Why Gold Still Tops the Nepali Wedding Checklist

By Prabin Shakya

Why gold still tops the Nepali wedding checklist and it still will in the future?
Gold has long been a symbol of social status and family prestige in Nepali weddings, enhancing the beauty of the bride and the guests alike. Heirloom jewelry, passed down through generations, carries the pride and legacy of a family’s success. The tradition of gifting gold to the bride by family and close relatives not only celebrates love and blessings but also provides a sense of security and financial independence. Tangible and liquid, gold is valued across all age groups. Beyond its monetary worth, gold holds deep cultural and religious significance, making it an enduring staple in Nepali wedding celebrations. Additionally, Gold is one such commodity that is the intersection of all three; culture, security and status, which no other investment tool is till date.

How Stable Is Gold Compared to Other Investments?
While bank deposits, shares, and real estate are popular investment options, gold remains the most stable. Bank interest fluctuates and often fails to keep pace with inflation, and shares, though potentially rewarding, come with high volatility. Real estate can yield good returns but requires large capital, is subject to taxes, and can be hard to sell in emergencies.
Gold, however, is portable, globally accepted, and protects against inflation and currency depreciation, earning its reputation as “liquid cash” and a truly safe investment.

For long-term investment, which form of gold is more suitable?
It is always best to hold gold or silver in its natural form i.e raw 24 karat biscuits and granules (in case of silver ).
Reasons being
• They hold highest purity i.e 99.9% purity
• No making charges except the government imposed 2% lux taxes
• When gold is held in raw form its usually easier to resell as most jewellers would easily buy it as its less of a hassle to check the purity or adulteration risks.
• Besides gold in raw form will take up lesser space in your closet or bank lockers for easier storage.

When Is the Right Time to Buy Gold in Nepal?
There’s no exact formula to predict the perfect time to buy gold. In Nepal, gold prices closely follow international rates per ounce in USD, which are then converted to NPR, often inflating the local price due to exchange rates.
Global economic uncertainty drives demand for gold, pushing prices higher. Inflation also plays a role, as bank interest rarely keeps up, prompting people to turn to assets that retain real value. The US dollar’s strength matters too: a weakening USD or a Federal Reserve rate cut can make gold more attractive as a secure investment.
On contrary, when bank interest rates improve, gold prices may fall as people prefer earning guaranteed returns from deposits rather than selling gold to realize profits. Strong bull markets can reduce demand for gold as investors diversify into equities, lowering its price. Strong confidence in the economy tends to suppress gold prices, while uncertainty boosts demand and pushes prices up. Given the unpredictability of these factors, a smart approach is buying gradually over time rather than trying to time the market.

What should customers clearly understand about the carat system of gold in Nepal?
Karat indicates the gold purity and Nepal probably is amongst the very few countries in the world that can actually produce 24 karat jewelleries, kudos to the crafsmenship the country is blessed with. The many other forms of gold purity as international standards are:
• 24K -99.9% pure
• 22K – 91.6% pure
• 18K – 75% pure
• 14K – 58.5% pure
• 12K – 49.9% pure
• 9 K – 37.49% pure ( Lately being BIS hallmarked and used in india too )

What percentage of gold jewellery is pure gold, and how much consists of alloy or mixed metals?
The purity of gold in jewellery is measured in karats. To calculate it, divide 100 by 24 and multiply by the karat value. For example, 100/24*22=91.6, 22K gold contains 91.6% pure gold, with the remaining 8.4% made up of other metals or alloys. These alloys improve strength, durability, and design flexibility since not all jewellery can be crafted in soft 24K gold, ensuring pieces last for generations.

What is the current status of BIS / Nepal Government hallmarking in Nepal?
Unfortunately, the Nepalese government has not yet implemented a formal BIS or hallmarking system. However, most reputable jewellers ensure their gold meets the stated karat and quality standards on their own, often offering a 100% buyback guarantee. Until official regulation is in place, consumers must rely on the jeweller’s bill of guarantee for verification of both weight and purity.

Why are bills and certificates so important when purchasing gold?
Since the hallmarking is still underway bills and certificates play an important role for proof of purity, weight and price transparency. Besides this, it also provides the following benefit
• Bills provide a consumer with the facility to easily resale and exchange.
• Bill is a proof of purchase giving the owner a time lapse of what they had purchase and for what prices thus creating a clear financial decision when needed.
• Bills act as a protection against disputes if any arises, as it is proof and confidence of auntheticity.,
• A consumer can leverage their gold and gold jewellery with the bank in case they don’t want to sell but use the gold as collateral with the bank.

In Nepal, how is the resale value of gold jewellery determined?
In Nepal, gold jewellery resale is highly transparent. Every purchase comes with a bill, and jewellers guarantee a return on the metal. However, resale value excludes certain costs like wastage, labour charges, and the 2% government tax. Consumers are assured payment for the net weight of the gold at current market rates, which is consistently applied across reputable jewellers nationwide.

Is it better for customers to resell gold at the same shop where it was purchased, or can it be sold at any jewellery store?
Yes ! although gold can be sold almost across any jeweller, you are suggested to sell the jewellery to the same jeweller you purchased, for reasons as follows:
• Selling to the same jeweller often gives you better value and the time taken to sell is shorter.
• With increased theft and application of compulsory KYC verification by the government, jeweller do not hold confidence over a newcomer for legal matters.
• Products when not manufactured by oneself, raises a doubt over purity which can of course be ruled out over examination but that would mean loss of time and money.
• Original jewellers are more likely to honor buyback guarantees without complications. When you don’t go to the same jeweller, they don’t have the compulsion to buyback for many factors like suspicion of wrong owner , Go AML filling hassles, etc.

Can gold be sold without a bill? How much does this affect the resale value?
Yes, gold can be sold without a bill, but in today’s regulatory environment it is extremely difficult. Sellers must comply with strict government procedures, including updated KYC, self-declaration of ownership, police reports, and national ID verification with thumbprints. Even if the sale goes through, the gold usually undergoes heavier scrutiny, often resulting in lower resale value or purity deductions as jewellers safeguard themselves legally.
What precautions should customers take while selling gold?
If you purchase your jewellery from a reputed jeweller with a good history this topic won’t be much of an issue but still here are a few tips you can consider
• Keep track of the daily gold rate before selling just as you would before buying to find a good rate.
• The key is to avoid distress selling, as gold is a long term asset and one never loses money over this metal
• Consider taking bank cheques or bank transfers instead of cash for safety & security purpose.
• Always check you got what you were promised at the time of purchase
• Make it a habit to read the terms and conditions mentioned by the jeweler in the bill at the time of purchase to avoid disputes later while selling.

What precautions should customers take while selling gold?
If you purchase your jewellery from a reputed jeweller with a good history this topic won’t be much of an issue but still here are a few tips you can consider

How common is the practice of insuring gold in Nepal?
Gold insurance is not commonly practiced in Nepal. It is mainly limited to jewellers insuring their stock, particularly those using bank loans. High government-imposed premiums make insurance costly, especially as gold prices rise. Additionally, limited awareness and financial education among consumers have contributed to low adoption of gold insurance for personal assets.
What special precautions should families with a large amount of gold take?
For families holding large amount of gold I would suggest the following
• Insure their gold with a reputed company.
• Use different bank lockers ( not putting all gold in one bank )
• Store your jewellery bills too as bills have become compulsory while selling in the market later.
• Have your second generation visit your jeweller just in case something unsual happens to you so you know your children can identify where the jewellery was bought.
• Avoid displaying unnecessary excessive amount of jewellery during events to ward off evil intentions

What special precautions should families with a large amount of gold take?
For families holding large amount of gold I would suggest the following
• Insure their gold with a reputed company.
• Use different bank lockers ( not putting all gold in one bank )
• Store your jewellery bills too as bills have become compulsory while selling in the market later.
• Have your second generation visit your jeweller just in case something unsual happens to you so you know your children can identify where the jewellery was bought.
• Avoid displaying unnecessary excessive amount of jewellery during events to ward off evil intentions

Do you see the younger generation increasingly understanding gold as an investment?
Absolutely! with the increased financially literate generation who are smarter with their investment decision than the older generation, they increasingly view gold in its raw forms as an investment and are also open to digital gold and commodity markets, even though these are not yet fully implemented in Nepal.Gen Z consumers are also shifting toward more sustainable choices, such as lab-grown diamonds over natural ones, valuing transparency and value for money alongside tradition.
What advice would you give to someone buying gold for the first time?
Firstly, understand Gold is a long-term asset, so there’s never a “I’m too late to invest” statement. You make money out of gold no matter when you enter, all you got to have is time and patience to realize profit out of it. Consider the following
• Before you buy gold decide what is your purpose whether its investing or decorative, if investing go for raw else jewellery.
• If you’re buying designed jewellery, opt for 22K for a more durability, as 24 k pure gold tend to wear off easily over a period of use.
• Always buy from a reputed jewellery, bargain less over the labour and wastage as a cheaper manufacturing cost comes with a hidden con which you might discover later when selling off the jewellery. Understand a good quality product definitely incurs good cost
• Always take care of the bill that you’re given for future reference and sell off .

What advice would you give to someone buying gold for the first time?
Firstly, understand Gold is a long-term asset, so there’s never a “I’m too late to invest” statement. You make money out of gold no matter when you enter, all you got to have is time and patience to realize profit out of it. Consider the following
• Before you buy gold decide what is your purpose whether its investing or decorative, if investing go for raw else jewellery.
• If you’re buying designed jewellery, opt for 22K for a more durability, as 24 k pure gold tend to wear off easily over a period of use.
• Always buy from a reputed jewellery, bargain less over the labour and wastage as a cheaper manufacturing cost comes with a hidden con which you might discover later when selling off the jewellery. Understand a good quality product definitely incurs good cost
• Always take care of the bill that you’re given for future reference and sell off .