If your goal is investment and preserving value, bars are better: they have no making charge to lose, and their VAT is 0% if they are 99% pure or higher, while jewellery carries a making charge and 15% VAT on the whole amount, and neither comes back when you sell. At today's prices, a 10 g bar costs about 4,976.41 SAR and a shop buys it at about 4,622.69 SAR, so you lose about 4% to 5% if you sell straight away. A 21K bracelet of the same weight with a making charge of SAR 30 per gram costs 5,046.89 SAR and a shop buys it at about 4,038.60 SAR, so you lose about 19% to 20%.
Gold bars or jewellery: which is better if my goal is investment?
Last reviewed: · How we write and review (Arabic)
Last updated: Source: metals.dev in Saudi riyals, dollars at the 3.75 peg · World benchmark: LBMA price · How we get our prices
A full example at today's price
The same weight, 10 g, bought today and sold today (estimates from Dhahabi's tables, which update with the price):
| 10 g 24K bar | 10 g 21K bracelet (making charge SAR 30 per gram) | |
|---|---|---|
| Purchase price | 4,976.41 SAR | 5,046.89 SAR |
| Of which VAT | 0 | 658.29 SAR |
| A shop buys it at about | 4,622.69 SAR | 4,038.60 SAR |
| Loss if you sell straight away | about 7% | about 19% to 20% |
Why is the gap so large? The bracelet holds only 8.75 g of pure gold (10 × 87.5%), and on top of that come a SAR 300 making charge and VAT on the whole amount, which do not come back. The bar is all gold, and the shop's margin on it is small. How these prices are estimated is in how we calculate prices.
Why is there no VAT on bars?
Because they are investment gold. Article 36 of the VAT Implementing Regulations treats a qualifying metal as supplied for investment if its purity is at least 99% and it can be traded on the global bullion market.
ZATCA confirmed, in a statement reported by the Saudi Gazette (2022), that this gold is zero-rated and that jewellery carries 15%. Details are in Is there VAT on gold in Saudi Arabia?
When is jewellery the better choice?
Jewellery isn't the wrong choice; it serves a different goal:
- A piece you actually wear and enjoy
- A piece with sentimental value, or a gift for an occasion
- If you want to split your savings between something you wear and something you keep
So the bar is for the portfolio and jewellery is for wearing, and many people combine the two. If you are buying jewellery, choose heavy, plain pieces because their making charge per gram is lower, and compare making charges between shops: How do I know if a gold shop's price is fair?
Before you buy a bar
- Check the hallmark: the Precious Metals and Gemstones Law bans selling bars and items unless they carry the Kingdom's hallmark.
- Ask for an invoice showing the weight, purity and price.
- Ask the shop directly: is this price free of VAT because the purity is 99% or higher?
- Compare the bar's price per gram with today's 24K price: 467.27 SAR. Bar prices at every weight are on the gold bars page (Arabic).
If you are considering another metal, see saving in gold or silver.
Sources
- ZATCA: VAT Implementing Regulations, Article 36 (Arabic).
- ZATCA, via the Saudi Gazette: VAT applicable to gold if its purity level is below 99% (2022).
- Bureau of Experts at the Council of Ministers: Precious Metals and Gemstones Law, Article 4 (Arabic).
- Bar and selling prices are Dhahabi estimates, with a bar margin that varies by weight (6.5% on a 10 g bar) and a selling margin of SAR 5 per gram, as set out in how we calculate prices.
Frequently asked questions
Are bars better than jewellery for investment?
Usually yes: they have no making charge, their VAT is zero if they are 99% pure or higher, and you lose less when you sell. At today's price the loss is about 7% on a 10 g bar, against about 19% to 20% on a 21K bracelet with a making charge of SAR 30 per gram.
Are 21K bars VAT-free?
No. The zero rate is for gold of 99% purity or higher, which in practice means 24K.
Do I get the making charge back if I sell jewellery?
No. A shop buys gold by weight and karat only, and the making charge and VAT do not come back.
How much is a 10 g gold bar today?
About 4,976.41 SAR as an estimate, and it varies by shop and brand. Prices at every weight are on the gold bars page.