Gold and Silver Prices in Nepal: A Complete Buyer's Guide

Gold and Silver Prices in Nepal: A Complete Buyer's and Investor's Guide

Gold holds a special place in Nepali culture — it is used in weddings, religious ceremonies, and as a long-term store of wealth. From the gold jewelry gifted at a Nepali wedding to the gold coins kept as family savings, precious metals are deeply embedded in Nepal's economic and cultural fabric. This guide explains how gold and silver prices are determined in Nepal, the different types of gold available, how to buy safely, and how to use gold as an investment.

Why Gold is Important in Nepal

Nepal is one of the world's largest per-capita consumers of gold relative to its income level. Several factors drive this:

• Cultural significance: Gold jewelry is an essential part of Nepali weddings, with the bride typically receiving significant gold ornaments from both families
• Religious use: Gold is used in religious ceremonies, temple decorations, and as offerings
• Store of value: In a country with limited formal investment options, gold serves as a traditional savings vehicle
• Inflation hedge: Nepalis have historically used gold to protect savings from inflation and currency devaluation
• Collateral: Gold jewelry is widely accepted as collateral for loans from banks and cooperatives

Types of Gold Available in Nepal

Nepal recognizes several types of gold for trading, each with different purity levels and use cases:

The price difference between fine and tejabi gold is typically NPR 200-400 per tola. When buying jewelry, the making charge (बनाउने शुल्क) is additional and can range from NPR 500 to NPR 3,000 per tola depending on the design complexity.

What is Tejabi Gold? Tejabi gold (also spelled Tejabi) is the standard gold used for trading in Nepal's wholesale and retail market. It has a purity of 99.5% and is the benchmark for daily price quotations by FENEGOSIDA. Most gold bars and coins sold in Nepal are tejabi quality.

The Nepali Gold Measurement: Tola

Nepal uses the traditional tola as the primary unit for measuring gold, unlike the international standard of troy ounces or grams:

• 1 tola = 11.664 grams (approximately 0.375 troy ounces)
• 1 tola = 11,664 milligrams
• Gold prices in Nepal are quoted per tola
• For international comparison: 1 troy ounce = approximately 2.667 tolas

How Gold Prices Are Determined in Nepal

Gold prices in Nepal follow a specific calculation process managed by FENEGOSIDA (Federation of Nepal Gold and Silver Dealers' Association):

1. International spot price: The London Bullion Market Association (LBMA) publishes the international gold spot price in USD per troy ounce 2. Currency conversion: The spot price is converted to NPR using Nepal Rastra Bank's official USD/NPR exchange rate 3. Unit conversion: The price is converted from per troy ounce to per tola (1 troy ounce = 2.667 tolas) 4. Import duty: Nepal levies import duties and customs charges on gold (currently around 10%) 5. Dealer margin: FENEGOSIDA adds a standard margin for wholesale dealers 6. Daily publication: FENEGOSIDA publishes the official buying and selling rates each morning

Factors that cause gold prices to rise in Nepal: - Rising international gold spot prices (driven by global uncertainty, inflation, USD weakness) - Depreciation of the Nepali Rupee against the USD - Increased import duties or taxes - High domestic demand (especially during wedding season: Magh and Baisakh)

Silver Prices in Nepal

Silver is priced per tola in Nepal, similar to gold. Silver has multiple uses:

• Religious items: Silver is used for making religious utensils, idols, and ceremonial items
• Jewelry: Silver jewelry is popular for everyday wear and traditional costumes
• Investment: Silver is increasingly seen as an affordable precious metal investment
• Industrial use: Growing demand from electronics and solar panel manufacturing

The silver-to-gold price ratio in Nepal typically ranges from 1:70 to 1:90, meaning silver is 70-90 times cheaper than gold per tola. This ratio fluctuates based on global supply and demand dynamics.

Tips for Buying Gold in Nepal

Verification and authenticity: - Always buy from registered dealers who are members of FENEGOSIDA - Check for hallmarking — genuine gold jewelry should have a hallmark stamp indicating purity (e.g., 916 for 22K, 999 for 24K) - Ask for a certificate of purity from the dealer - Keep your purchase receipt as it is required for resale and insurance

Price comparison: - Compare prices across multiple dealers as making charges can vary significantly - Check the FENEGOSIDA daily rate before buying to know the fair market price - Understand that the price you pay includes the gold value plus making charges - When selling back, you will receive the gold value minus the dealer's margin (typically 1-2%)

Buying gold for investment: - Gold coins and bars have lower making charges than jewelry - Store investment gold in a bank locker for security - Consider Sovereign Gold Bonds or digital gold if available through your bank - Gold prices tend to be higher during the wedding season (Magh and Baisakh months in BS)

Gold as an Investment in Nepal

Historically, gold has been a strong store of value in Nepal. Over the past decade, gold prices in Nepal have increased significantly, driven by both rising international prices and NPR depreciation against the USD. However, gold is not without risks:

• Storage risk: Physical gold requires secure storage
• Liquidity: Selling gold jewelry may involve making charge losses
• No income: Unlike stocks or bonds, gold does not generate dividends or interest
• Price volatility: Gold prices can fluctuate significantly in the short term

For most Nepali investors, a small allocation (5-15% of savings) in gold provides portfolio diversification and inflation protection.

Monitor daily gold and silver prices using our Bullion Market tracker, which shows live FENEGOSIDA-published rates updated every trading day. The tracker also shows historical price trends to help you identify the best time to buy or sell.