Looking To Buy Gold Coin in India?

Aug 11, 2011     Posted under: Investment

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Gold is always considered as one of the safest medium to invest money. The past trend shows that gold has always resulted in high returns as compared to other assets. But, one thing one needs to keep in mind while buying physical gold and keeping is with their security but with the bank lockers in place and too at not that much premium who will mind the overall returns gold is providing.

So, here are few things one should know about buying gold coins:

  • Reputed Banks sell gold coins: When buying gold coin the biggest thing you will look out for is the trust factor of gold purity. Reputed banks like SBI also sell gold coins so that reduces the chances of fraud. There are a number of banks (both private and government) who are selling gold coins so you need to contact banks for details on this. Also, each bank provides a purity card when they sell gold coin, so always keep in mind to ask for that because that will make it easier to sell.
  • Different Size: Gold coins come in various sizes – so one can buy as per the requirement. The usual sizes are 2, 4, 5, 8, 10, 20 and 50gms. The gold coins are 24carats in purity and bank guarantees the purity.
  • PAN needed for gold purchase worth more than Rs. 50,000: If you are planning to purchase gold coins worth more than Rs. 50,000 then the banks will ask for your PAN details. So, keep that ready – this is one reason that people switch to local jeweller for this purchasing.
  • Bank’s wont buy-back Gold coin: As of date there is no bank which buys back the gold coins which is little absurd but that’s how it is. I tried to ask this from the bank authorities but there is no clear answer. This is also another reason to switch to local jeweller because they have no problems in buying back the gold.
  • Premium for Buying Gold from Bank: If you compare the prices of the gold coin from the local jeweller and bank you might notice a difference, even though they guarantee the same purity. This is extra premium banks charge and people end up paying this due to the trust factor with the bank. But it all up to individuals if they have a trustworthy local jeweller there is no problem in purchasing gold coins from them because that takes cares of selling also.

NitiN Kumar Jain

Nitin works in an IT MNC professionally but blogs and owns NKJ Live. He is also the co-owner of a professional start-up ARGHAM BYTES

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  • Gopinath

    Do you know that you can save 15,000+ on purchase of 50 grams gold bar from Indian Overseas bank instead of a private bank(7 September price) ? Always compare gold coin rates from different banks before comparing. 

    • http://nitinkumarjain.in NitiN Kumar Jain

      That sounds good … thanks for the info

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