Digital watermarking is the field of digital image processing which deals with hiding information in a digital content. In this paper, performance analysis of DCT (Discrete Cosine Transform) based digital image watermarking using color spaces is done. Mostly, images that are taken for digital watermarking experiments are in RGB (Red, Green and Blue) color space. Eight different color spaces are considered for evaluation viz. RGB, YCbCr, JPEG-YCbCr, YIQ, YUV, HIS, HSV, CIELab and the performance of proposed algorithm is tested to check for which color space the algorithm works well.