Where to buy gold coins in India?

by Manshu on April 27, 2010

in Investments

When you think about buying gold coins – the first place that comes to your mind is probably the local jeweler, but there are a lot more options than that at your disposal, if you want to buy gold coins.

In this post I am going to look at some of those options.

1. Buy gold coins at the bank: A lot of Indian banks sell gold coins these days. The benefit of buying gold coins from a reputed bank is that you have a lot more peace of mind, as far as the quality of the gold coins go. The disadvantage of buying gold from a bank is that they normally charge a premium on the gold coins, and you might be paying extra than what you would have otherwise paid at a jeweler. Another disadvantage is that normally banks don’t buy back gold from you. If you buy gold from a reputed jeweler, then in most cases they will buy it back from you.

2. Buy gold coins at the post office: This might come as a surprise to some of you, and it certainly surprised me, but it is true that the Indian Post Office sells gold coins.  They too charge a premium on the gold coins they sell, but it seems that it is less than that charged by the bank. I am not sure about this though, and it is best to check this point yourself. Like banks, the Post Office will not buy the gold back from you, and only a few post offices are allowed to sell gold coins, so this option might not even be practical for you.

3. Buy gold coins online: I saw at least a couple of websites that were selling gold coins online, and that seemed to be legitimate. I am not linking to them because I couldn’t read any reviews on them, and do not know any one who has bought gold coins online in India. Further, when I checked the price of a 2 gram gold coin on their website and compared it with the gold coins SBI is selling, – I found that the online store is charging a higher price. The online store was asking Rs. 3998 for a 2 gram 99% purity gold coin, whereas the price I saw at SBI was Rs. 3,760. This doesn’t make much sense to me, and personally, I would rather go to a bank and buy gold coins, rather than pay extra to an online retailer to buy gold coins.

4. Buy gold coins from nation wide retailers like Tanishq: You can go to a reputed nation-wide jeweler like Tanishq, and can buy gold coins or bars from them. This offers you peace of mind because they have a strong reputation, and their good distributions means that this will be a convenient option for many of you.

5. Buy gold coins from your local jeweler: Most Indians will have a family jeweler, and if they sell gold coins or bars, then you might just find that this is the cheapest option. Furthermore, they will be willing to buy – back the gold coins as well, so that is an added benefit of buying from them.

These were five options that I could think of where you could buy gold coins in India, and I’d like to hear if there are any options that you know of and I missed out on.

{ 145 comments… read them below or add one }

R.Bhatia August 7, 2010 at 2:55 AM

It is not true that Indian Post office is selling gold coins cheaper than banks. Rather, they sell higher at about 5-6 %more. The reason is not clear.
Morever, their rates are not avialable on line to check by a customer.

There is need to to fix limit on the maximum price a bank can charge of gold coin.
At present their is difference of 5-6 % in the prices.

Also, the banks and post office must introduce the buy back scheme of their gold coins, as Tanisque has. This shall enhence the sale and purchase of gold coins.

Govt must think to mint its own gold coin, as USA and other developed countries are doing.

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priya April 10, 2011 at 4:41 AM

Yes, banks should have buy back schemes to make this investment popular

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Alex August 16, 2010 at 8:14 AM

You can buy the 99.99 purity gold coins, assay certified and distributed by the bank from the local jeweler and you will end up paying approximately Rs 1500 less from the actual price quoted in the bank. The computation goes as the actual market price of the 24 carat gold on that day +Rs 800 +1% tax if brought in Bangalore. If you are buying a 22 carat gold coin, you have to pay the actual market price of the 22 carat gold +die charges which would be approximately Rs 30 per gram or some people would levy Rs 300, depends on your local jeweler.

Say for example if you the bank quoted you Rs 16,500 for an 8 gm coin, you can buy that same coin from the jeweler for Rs 14,200. If you are getting an 8 g, 22 ct coin from the jeweler, you would be paying somewhere around 12,000. These figures are just approximates.

Hope this helps for a better investment

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Manshu August 16, 2010 at 3:31 PM

Thanks for the tip Alex. Is it easier to sell coins bought from a jeweler back to them as compared to coins bought in a bank?

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Sowmya January 12, 2011 at 11:46 PM

Hi,
Am interested to buy gold for investments and recently started exploring the market.
My Findings:
Banks charge a high premium for 24 Carat Gold coins/bar, but whereas my local jeweller has the same bank sealed gold coin of 24 carat on which he is charging 9% premium (as per RBI directives 9% is allowed) +1% ie 10% which i found quite reasonable compared to banks whose preiums are very high .
Buyback would be at the prevailing rate of 24 carat gold on the day of sale.
That means what you pay on Gold coin is the 10% premium rest is the return which you get back on the investment.

Also the Gold ETF about which i have read in this site only if sold after 1 year then Long Term capital Gains LTCG would be applicable which is again 10%

Hence i was trying to compare the two options in which Gold ETF seems better as for the same 10% cost you get the Gold and you dont have to pay the locker fee and storage tension .
You get the benefit of investment in Gold without actual physical possession and tension of safeguarding the same.

Please let me know your Views on the understanding.

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Manshu January 13, 2011 at 7:15 AM

Hi Sowmya, these are all good observations, and let me add a few thoughts to them:

1. When you go to sell the gold coin, you might face some additional deduction as reported by people who tried selling Tanishq gold coins, so you need to keep that factor in mind while looking at physical gold.

2. Gold ETFs do have costs which are about 1% of assets for the lower ones, so this is akin to storage charges, and you can think of this money that will be reduced from your profit, or increased to your loss.

3. VAT would have to be paid on buying physical gold.

So, these are some additional factors that you can evaluate.

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Loney February 14, 2011 at 8:05 PM

Hi Sowmya,
I would like to add something to your statement below:

Also the Gold ETF about which i have read in this site only if sold after 1 year then Long Term capital Gains LTCG would be applicable which is again 10%

For Physical Gold, you will have to wait for 3 years (in contrast with 1 year for demat gold) in order for the gain to be taxed as Long Term Capital Gain. The Short term capital gain is added to your income in both the cases.

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GB February 16, 2011 at 4:41 AM

by telling ‘wait patiently’ iam not meaning 1 or 2 years.if you notice the share market it moves in cycles.1 0r 2 years it may be down.but after that you will get the returns more 3 times also.at 2008 market crash if you have bought gold and taken a loan and invested in equity mutual funds you would have doubled your money and the gold’s value also increased.now you can sell the gold for high rates.and repay the loan.what ever your earned in the mutual fund is bonus.

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Manshu February 16, 2011 at 5:00 PM

Hindsight is always 20 – 20 – anyway to each his own – all the best for your plan.

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GB February 15, 2011 at 10:12 AM

better buy gold coins and take a loan using that from a bank.the maximum interest will be 1.5%pm.invest the same in a liquid mutual fund.when ever share markets fall heavily invest part of the amount.wait patiently.once you get 3%pm return with draw and pay back the loan.

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Manshu February 15, 2011 at 4:28 PM

GB – What would you do if the market really tanks, and you can’t make the 3% per month that you are talking about? This is a really risky strategy, and personally, one that doesn’t make any sense to me at all.

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Kush March 2, 2011 at 1:17 PM

I have been researching gold market for three years. I will tell you this which I don’t see any other Indian mentioning. Gold ETFs don’t have the physical gold to back them up. ETFs are derivatives, and they are risky. If you want to participate in the gold bull market, you must buy physical gold, and never buy a piece of crap Gold ETF derivative. NSEL E-Demat is crap too. There is too much counter-party risk to these derivatives. You should buy gold for safety. Exception is if you are trading for short term. But you should not trade in gold for short term. Short term is primarily for losers or beginners. Smart people buy for the long term with the trend. There may come a time in 2,3,4, or 5 years when you may sell your gold. ONLY BUY PHYSICAL GOLD AND SILVER.

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Manshu March 3, 2011 at 8:19 AM

That’s not true – gold ETFs are required to hold physical gold to back up their purchase which is audited as well.

What’s the basis for you saying there is no gold to back gold ETF?

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Loney March 3, 2011 at 8:27 AM

That’s absolutely not true. Gold ETFs are 100% backed by Physical Gold in India. I think you are speaking about the US, where there are certain funds that use the derivative way into gold.

Thankfully in India though, it is not allowed. Infact, in India, even the AMCs donot have access to the gold stored in the vault. The gold is insured against any loss. It is routinely verified and audited and is taken care by the custodian of your mutual fund, which is usually a bank. The custodian keeps the gold on behalf of the investors and the amc.

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Kush March 6, 2011 at 7:31 PM

You are right about the gold ETFs in the U.S. using derivatives which shows that the ETFs cannot be trusted.

But the same is indeed true in India. More so. Because people here are blindly trusting the custodian banks.

AMCs need to have access to gold in the vault, which you yourself point is NOT the case. The custodian itself doesn’t have gold because if they did they would release the audit results, which none of the banks have released. It shows that something is fishy with the ETFs. So, never trust them. Only buy physical gold and sivler.

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Rajkumar Singh Deora August 17, 2010 at 12:23 AM

Jai Mata Ji

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Zakir Patel August 21, 2010 at 7:22 PM

It’s great information on this blog. Thank you ..

On further browsing I came across a Government run MMTC that claim to be selling Gold coins and bars however they do not have any outlets/offices in Mumbai. The only other reliable option I was able to figure out was that of National Indian Bullion Refinery. I am still to try it out. If any one has any experience with it that will help me and other readers first hand.

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Yash August 22, 2010 at 9:18 AM

You Could buy from MNC Bullion 99.9% purity Gold coins which are just like the Bank coins at much competitive price. I bought from them and I am happy with the coin and service. They informed me that very soon they would sell it online on their website http://www.buyorsellcoin.com for delivery anywhere in India

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Kush March 31, 2011 at 6:27 AM

As per the above post by Yash, I bought one Silver 100 grams bar from mncbullion.com. I must say that I am impressed with the service and the coin. The premium came about 16%, which is one of the best in the Indian retail physical silver market.

But today I found out about Jalan Jewellers in New Delhi. They have two branches: one in Chandni Chowk and the other in Lajpat Nagar. I went to Lajpat Nagar as their Hallmarking facility is located there. They are BIS approved for Hallmarking. You can check on this link to see their address on the table at BIS web site: Sl No. 6. http://www.bis.org.in/cert/hallmarkass.htm

The premium turned out to be slightly lower than MNC Bullion. Plus I got them to hallmark the bars. It seems MNC is not authorised to hallmark. But if you talk to them they may hallmark it through 3rd party. I am not sure.

So for any one living in Delhi, I highly recommend Jalan Jewellers. Especially the Lajpat Nagar branch as the hallmarking centre is located right there. When you buy tell them you want it hallmarked. I think it is Rs. 50 per item. I once again highly recommend that you check out Jalan Jewellers. They also supply in part to MMTC and Muthoot Finance.

For those who don’t live near Delhi, they can buy from MNC Bullion, who also give great service. But again prices are slightly higher than Jalan Jewellers: about 1%-2% difference. But if you can ask them to hallmark, it would be better.

So, my search for buying physical silver in Delhi finally ends. First choice is Jalan Jewellers: because of price, location, hallmarking. MNC Bullion is also an alternative. Strength of MNC Bullion is that they are reputed in South India and buy & sell online. Both of them are recognized from MCX, and NSEL. However, Jalan Jewellers is also recognized by IBMA.

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Vipin July 3, 2011 at 10:01 AM

Great. Thanks for such a detailed information I was seeking for long. Anyone interested in buying Gold/ silver should go through these blogs

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Diamond August 24, 2010 at 3:39 PM

Great information. I got a lot of good ideas to save money.

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rajan September 14, 2010 at 4:07 AM

thanks for ur useful info buddy

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Manshu September 14, 2010 at 5:47 AM

You are welcome…glad you found it useful.

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nidhi mahajan September 19, 2010 at 12:15 AM

THIS IS REALLY ANNOYING THAT TANISHQ AT ONE HAND IS SELLING GOLD AT A MARKED UP PRICE THAN THE MARKET RATE AND ON THE OTHER HAND DEDUCTING AS GOOD AS 5% WHILE BUYING BACK ITS OWN GOLD……. LOOTOING FROM BOTH ENDS……

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Prasanna January 7, 2011 at 12:49 PM

I amazed at this posting. Of course this how capitalism works. You buy below market from the willing seller and buy above or at market prices from the willing buyers. I do not see anything wrong other than pure market exists!.

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SHILPA January 11, 2011 at 6:09 PM

Usual practice in USA is if spot gold price on that day and time is say 1370USD per ounce, then the dealer will sell it with 50 to 75 $ premium. ie. 1370+60= 1430.
while buying back the same coin he will see the spot gold price of the day and give 10$ less to customer. i.e spot price is 1370. then buyer will get 1320$. so we just have to accept the practice. what make sense for buyers is wait for at least 15-20% growth hence this dealer profit is taken care of and ylu still get appreciation. in short term trading gold coin incur losses.
hope it helps

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Manshu January 12, 2011 at 10:23 AM

Thanks for sharing that Shilpa.

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nidhi mahajan September 19, 2010 at 12:18 AM

WHOM SO EVER U MAY PLAN TO BUY GOLD FROM, IT IS ADVISABLE TO ASK THE DEDUCTION POLICY FOR BUY BACK. A CUSTOMER LOOSES A LOT OF MONEY HERE ALSO.

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Prasanna January 7, 2011 at 12:51 PM

Loosing 10% is lot? Hmmm well people should not sell them at all; but at low prices and sell high prices, when price difference is high? why this so difficult

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Tejas Dave October 22, 2010 at 3:26 AM

Thanks a lot for this information.
That is a comment that the local merchants deduct 5% when it is sold back to them. Where should we go if we want to buy it to envest for long period like 10 or 15 years ?
To the local jewller, bank or Tanisque?
Your reply would be very important for me.

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Manshu October 22, 2010 at 6:43 AM

The bank will not buy the gold coins back from you Tejas, so that’s one thing to keep in mind. As Nidhi said above Tanishq sells at a slight premium to others, and then deducts a certain amount.

So, I’d say check with Tanishq on what they are offering, and then compare that with a local jeweler of repute to see how they fare. The key thing would be to compare what the local jeweler will deduct for buying it back (if he deducts anything at all), and seeing which one is better.

Does this make sense?

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Jitender October 23, 2010 at 12:29 AM

re bhai u information hai to kam ki. RAM RAM JI

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Sarat October 29, 2010 at 5:22 AM

@ Tejas Dave, Manshu

Although i haven’t bought aby gold through this route one of my friend is suggesting me this.

As per my information the best way for you to purchase gold as investment is to invest it as E-Gold. For that matter Buying from E-Gold seems to be best option.

Download daily summary from the following link and there is a clear comparision given between E-Gold , Banks and Tanisq.

http://www.nationalspotexchange.com/SitePages/MarketMaster.htm?pg=7

The procedure would be as follows

1) Open a E-Gold Trading account with the Depository Participants like Karvy
2) Buy E-Gold and Hold it if its for Investment. You can buy as low as 1 Gram
3) Else you can get it delivered in 2 days ( 24K – 995 Purity)

Keep in mind that You spend extra Rs. 500 for opening an account with Karvy so if you are buying gold below 5 grams it doesn’t make sense.

You can check the pricing in their website daily.

I am yet to find a couple of answers about E-Gold

1) As per my information it is delivered in select cities only.
2) what are the charges when i get these Gold Coins exchanged for Ornaments

Anybody knows the answeres for these questions please comment.

I think this way to buy gold is slowly gaining prominence as i have seen a couple of blogs recommending this mode.

http://www.mydigitalfc.com/news/e-gold-may-be-better-buy-569

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Manshu October 29, 2010 at 6:23 AM

Sarat,

Thanks for sharing this info and I’ve been hearing about this option recently myself and had to look into it in detail but haven’t been able to.

One of the things that I am really skeptical about is how someone can say this is the “best” way to invest in gold when it hasn’t even been around for a year? Don’t you need to see a certain track record before you put it up on that pedestal?

But again, thanks for bringing up this in the discussion.

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nitesh bhongade November 1, 2010 at 2:33 AM

I am still not convinced to your suggesstions. No body is confirming where to buy gold exactly.

please suggest.

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Manshu November 1, 2010 at 6:01 AM

Nitesh the content here is mostly geared towards giving you information – pros and cons about a topic, and then letting you take the final decision. What’s best for one person may not be the best for another. So, given that please evaluate the points mentioned here and use your own judgment.

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DIVYA November 2, 2010 at 2:25 AM

THANX FOR THE INFORMATION

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Manshu November 2, 2010 at 4:14 AM

Thank you for reading Divya.

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manjusha December 3, 2010 at 2:19 AM

Hi All,

as posted by nidhi mahajan…..i have faced the same problem with the
waman hari pethe jwellers at nagpur.

the market rate of gold per 10g is – 20750 and WHP are charging 21750 (almost 1k more)…morever they are also deduction of 10% ….at the time of buying it back…..which not at all the good thing….also the employees are not able to explain me properly the reason for the same.

always make enquiry for the buy back policy……moslty buying from local(but still known) jeweller is good..

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Manshu December 3, 2010 at 7:47 AM

Thanks for sharing your experience Manjusha….so the key thing here is to be sure of the buyback policy.

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Goel December 5, 2010 at 11:29 PM

Does Tanishq deducts extra if the coin has been bought from another vendor. For example, if I buy a coin from MMTC, and sell it to Tanishq, the questions are:-
1. would they buy coin of another vendor at all?
2. if yes, would they deduct the normal 5% or more?

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Manshu December 6, 2010 at 10:05 AM

Sorry Goel, but I don’t know the answer to either 1 or 2; maybe someone else who has tried this can answer your question.

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Goel December 5, 2010 at 11:37 PM

I just read on the Tanishq website that “When you exchange any Tanishq gold coin with jewelry… a full value exchange is done on the same.”

http://www.tanishq.co.in/tanishq-story/tanishq-22k-gold-coin

but my questions remain

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SHILPA January 11, 2011 at 6:19 PM

they had made their money by the time on making charges of jewelery and which are huge as compare to other local jwellers.so………… full value exchange is still a compromise.

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Neha Mehta December 6, 2010 at 6:19 AM

Neha,
The very basic question..

Gold Invest karne k liye sabse jada konsi chiz leni chaiye..
ornaments ya..coins ya ny as such kind of jwellary..
Pls suggest..
Thanks..

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Manshu December 6, 2010 at 9:56 AM

Neha, the gold coins are much better than gold jewelery for investing, but keep in mind when you go back to sell your gold coins to the jeweler he will deduct some percentage, so you will have to bear that in mind.

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Vijay Jain January 20, 2011 at 12:31 AM

Neha, more educated women buying in investment avenues than going behind jewellery investments. fashion changing very fast. What is good today may not be in fashion tomorrow.

Therefore for longterm investment and guard against inflation, BUY E-GOLD & E-SILVER than physical gold/silver coins or jewellery

Gold Jewellery has become passe, with so many more options in the latest fashion trend.

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Ashish Agarwal December 22, 2010 at 12:38 PM

Buying gold from the bank,s is never suggested one should always buy gold from some known jeweler and with a view of keeping it for at least 8-10 years.

In kolkata MMTS shops people don,t entertain you but may be in other cities you can directly approach them.

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Ninna January 7, 2011 at 4:36 AM

Fine, i view this site because i was in confusion of buying gold, and now after reading all the comments and views now i m more confused, so now i ve come to conclusion that i wil purchase gold coins or bars from nationalised bank.
As per today and till february is concerned i would go for bank of baroda or punjab national bank because they are giving discount of 2%, and during other time its better to purchase from corporation bank, because its price is less when compared wit all other nationalised banks.
Thank you.

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Manshu January 7, 2011 at 12:19 PM

All the best with your decision Ninna, just make sure you figure out how you will sell the gold coins because as you would have noticed that is the place most people have faced trouble.

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brij mohan lal October 2, 2011 at 3:09 PM

please tell me system of purchase gold from PNB and all terms and condition .

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Manshu October 4, 2011 at 5:59 AM

PNB is the best organization to tell you that – you can go to their branch, they will tell you a price of the day, and then you can buy the coin. Just keep in mind that they won’t buy back the gold coin from you so you will have to sell it to a jeweler somewhere and a lot of people have faced problems in that.

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Tejas January 11, 2011 at 10:16 PM

Mentality of Indians is to buy physical gold no one would like to go for E Gold funda.
They will go to the merchant and made ornaments.
In India Gold is a long term investment.
Ultimately the customer has to be cheated by the merchants so better to go to earn more profit from the price to cut down the cheating ratio.

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Sowmya January 13, 2011 at 1:58 AM

Hi,
Am interested to buy gold for investments and recently started exploring the market.
My Findings:
Banks charge a high premium for 24 Carat Gold coins/bar, but whereas my local jeweller has the same bank sealed gold coin of 24 carat on which he is charging 9% premium (as per RBI directives 9% is allowed) +1% ie 10% which i found quite reasonable compared to banks whose preiums are very high .
Buyback would be at the prevailing rate of 24 carat gold on the day of sale.
That means what you pay on Gold coin is the 10% premium rest is the return which you get back on the investment.
Also the Gold ETF about which i have read in this site only if sold after 1 year then Long Term capital Gains LTCG would be applicable which is again 10%
Hence i was trying to compare the two options in which Gold ETF seems better as for the same 10% cost you get the Gold and you dont have to pay the locker fee and storage tension .
You get the benefit of investment in Gold without actual physical possession and tension of safeguarding the same.
Please let me know your Views on the understanding.

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Vijay Jain January 20, 2011 at 12:26 AM

Why not look at the opportunity of buying Gold and Silver in Electronic Demat Form. It is Safe. The price are quoted on the exchange website. You can buy or sell anytime. The exchange is open from 10Am to 11pm, No storage charges, just your Demat a/c which is also with NSDL ( a GOVT C0). No making charges, No Purity losses.

There is NO ETF for Silver. Silver has given a return of 60% in last 6 months. Industrial use has gone up and so has price.

You or anyone who need to buy or invest in Gold and Silver can contact me with their requirements. The minimum buy for Gold is 1Gm and for Silver 100 Gm.

You do not have this possibility of small investment anywhere. You can have a SIP done as well to buy in a fixed lot, every day,week or month as per desire

Once you have accumulated enough qty, you can exchange for Physical Gold or Silver.

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Vijay Jain January 20, 2011 at 12:13 AM

I think anyone out here really interested to invest – Longterm or Short terms in GOLD or SILVER should look at investment through E-Gold and E-Silver Route.

In earlier days, people use to make Jewellery and utensils for not only their use but also for future safeguard against inflation and other perils. Now the educated class do not see much of such usages and as such it has become more of an investment avenue and opportunity.

I have two reason for my arguments:-
1) The buying and selling price of GOLD/SILVER COINS are fluctuating and many fakes are there in the market.
2) Coins of Ganeshji, Laxmi ji become a show pcs which cannot be sold, when required, for religious beliefs.
3) With the changing fashion in the Jewellery industry, the same has become outdated in no time, and the resale value on selling. after deduction of making charges and impurity is quite questionable.

Therefore, suggest that in the long run, investment in GOLD & SILVER through Electronic route will be much better.

Anyone looking for buying GOLD & SILVER in ELECTRONIC DEMAT form can write to me.

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Shilpa September 23, 2011 at 11:30 AM

Hi Vijay,

I am planning to invest in Gold but not able to make a decision that should i go for physical gold or for e gold.

Kindly let me know whether e gold and gold etf are the same thing, also let me know with how much minimum amount i can start investing in gold.

After going through the trail conversation i am more confused.

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Asif January 23, 2011 at 9:39 AM

Thanks ALL, for sharing valuable information & knowledge. Very Useful. Cheers!

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Manshu January 24, 2011 at 10:57 PM

Thank you for your comment Asif.

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Shilpa September 23, 2011 at 11:32 AM

Hi Manshu,

PLS help me in getting the clarity about Gold ETF and E gold and to whom to approach, as i am very new in the market and have no clue regarding gold investment.

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Manshu September 25, 2011 at 9:49 PM

Shilpa – for gold ETFs you don’t have to approach anyone other than your regular share broker or online trading account like ICICI DIrect or HDFC securities or anything. Have you ever bought shares and do you have an account with any of these companies?

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Shilpa October 4, 2011 at 10:21 AM

Hi Manshu,

I have never bought any shares but i do not have any account with these companies. Can you help me out with the procedure for the same.

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Manshu October 5, 2011 at 4:12 AM

Hi Shilpa,

What you need is a Demat and a Share trading account to get started to invest in shares, or if you are only interested in gold and not shares in general then there are gold mutual funds that give you that option also.

For Demat / Trading you can contact someone like ICICI Direct, HDFC Securities or any other bank of your choice, or for MF you can contact the fund house directly like Kotak.

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Vijay Jain January 26, 2011 at 3:50 AM

Besides E-gold & E-silver you can soon invest in Platinum. NSEL has reported tremendous growth in turnover of both E-Silver and E- Gold, exceeding all expectation. Even E-Copper has registered very high growth.

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Harmeen February 9, 2011 at 10:23 PM

Thanks for the information, I am really interested to know more about E gold . Please tell me more, does investing in E gold means extra income tax payment . I always believed MMTC gold coins are safest bet , as they are believed to buy it back.

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Vijay Jain February 10, 2011 at 10:34 PM

Dear Harmeen,

Thanks for your interest in E-Gold. You may just need to open a new DEMAT account for METALS only. You can open with any DP who is registered with NSEL.

Once you have opened the demat, you can let me know your contact details, and we can contact you. Else you can contact us richvikenterprises@gmail.com . We can arrange for buy and sell for your E-gold. You can also buy E-silver, which in my opinion is a better product, return wise, for investment. In the last two weeks the price has gone from 44000 to 46000. The investment is also lower. I would also suggest to buy E-copper for medium term profit.

As far as E-Gold or E-Silver is concern, there is still ambiguity to taxation, but be be safe, it is treated as investment in Physical metal and accordingly taxed as LT > 3 years and ST< 3 years.

Anyway who is anyway interested in Short Term investment in Gold and Silver.

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Manshu February 11, 2011 at 4:44 AM

Harmeen – here is a post about NSEL and you can view the post and comments to learn more about this option.

http://www.onemint.com/2011/01/13/e-gold-and-e-silver-from-nsel/

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Ossie February 12, 2011 at 10:34 PM

Hi,

I am a Perth Mint (Australia) Distributor of Gold and Silver coins/bullion.

I am trying to locate a person or business who would be interested in importing pure Australia gold/silver bullion for investment into India.

I can find such a business. They all seem to be jewllers etc.

Surely there is a market for gold and silver investment in India?

If anyone can point me in the right direction I would appreciated it.

Cheers

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Vijay Jain February 13, 2011 at 10:21 AM

In my opinion, there is huge market for Gold & Silver Bullion, which must have now understood after reading the above comments.

Yes, Jewellers are the main marketers, but there are various other agencies who imports bullion for Indian market.

Please send me the full details about your products, weight, marking and purity and let me try to help you in locating some buyers. Our email id is richvikenterprises@gmail.com

Regards

Vijay Jain

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gitansh March 5, 2011 at 2:50 PM

There is surely a great market in india. But people here mostly dont trust in foreign mints and most importantly there are not too many realible sources here in india that buy or sell foreign mints coin.
Actually i m interested in silver more than gold and as i am a student can spend much money on physical . just some pocket money…
But anyways looking for perthmint coins u can email me at
gitansharora@gmail.com

THANKS

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VAIDYANATHAN February 13, 2011 at 11:46 PM

Considering the problems in buying / selling physical gold, the e-option is obviously better. But which is a better option? E-gold or Gold ETF?

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Manshu February 14, 2011 at 5:02 PM

Gold ETFs have been around for much longer, and Benchmark Gold BEES has got good volumes and low cost. It’s understood how this functions and at present I’d personally go for ETFs rather than E-Series.

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gitansh March 5, 2011 at 2:53 PM

HEY can u tell me more about ETFs. I am rather new to this..
and also can ETFs be delivered like E-series of MCX?

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Manshu March 6, 2011 at 1:10 PM

No, they can’t be delivered like MCX.

The category on ETFs have a lot of info that can get you started on understanding them. Here is the link.

http://www.onemint.com/category/etf/

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Vijay Jain February 16, 2011 at 1:04 AM

In my opinion both option of investment in Gold is better and it is true that Gold ETF has been for a while and whereas E-Gold/E-Silver has just come into limelight in last 6-8 months.

However looking to the volumes that E-Gold and E-Silver is generating in the Exchange, I see a definate shift in people’s investment perception and personally I feel that E-Gold / E-Silver are better products than GOLD ETF.

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Minakshee March 18, 2011 at 3:04 AM

Sir,

Thank you for the information.Now I have got some idea for buying gold.

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Manshu March 18, 2011 at 7:40 AM

Appreciate your comment.

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ratna April 11, 2011 at 1:58 AM

I have purchased 24k gold coins of 8 grams from Manappuram jewellers . They charged me Rs.151 +2% VAT additionally. Is that fair enough. How far is Karat meter reliable.

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Kapil Kumar May 10, 2011 at 5:13 AM

Jai Mata Di

i know about a company which offer’s 24 c gold coin with 99.9 % pureity in gold it muthoot finance.
i think muthoot is a good option to purchase gold coin.

kapil

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harish May 20, 2011 at 9:17 PM

What about the Reliance gold coin? Any one has any experience with Reliance ? Is it trust worthy option?

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Manshu May 21, 2011 at 12:40 PM

The main question there is whether they buy it back from the customer because that’s when people face problems. I don’t know if customers can sell it back to them but if they can’t then they will face some of the same problems they face when they go to sell a bank gold coin to a jewelery shop.

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Bakhs May 28, 2011 at 2:27 AM

BTW Tanishq besides being very expensive also does not declare the premium it charges on the coin of various denomination. All the sales person has a printout of making charges etc but if told to give a copy they say it is a Policy decision. AVOID TANISHQ for me

I prefer TBZ any time

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sandeep June 17, 2011 at 6:29 PM

I have bought a gold coin at http://www.caratlane.com/gold-coins recently. Looks like a professional site. They don’t buy back but you can always exchange your coins with jewellery at 100% value anytime. They also have a Lowest price guarantee policy where they will re-imburse you with the difference if you are able to find a lower price in the market.

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Manshu June 18, 2011 at 8:31 AM

Thanks Sandeep, have you already received the coin? Any feedback on how long they take to deliver, and if you plan to get the purity tested or anything else like that?

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sandeep June 18, 2011 at 5:43 PM

I have received the coin. Took about 3 days for delivery.

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Manshu June 19, 2011 at 7:36 AM

Thanks Sandeep.

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Sudhir June 22, 2011 at 2:40 PM

PURITY OF GOLD IS IMPORTANT!!!

Hi all ! I had been looking into the discussions for quite some time. All appear very interesting. However, it also appears that some bloggers, althought might be aware of some finer aspects of Gold and Investment in Gold, do not intend to provide fuller details of the information. May I add somethin here.

As quite a bit of discussion is on Coins, I am rstricting myself to the same.

I could not notice any ‘informative/expert’ blogger writing anything about the purity of Gold.

The ’24 Carat’ Gold is available in 3 Purities, if not more, 995 Purity; 999 Purity and 9999 Purity.

E-Glod that is being discussed by Mr. Jain or the Caratlane that is being suggested by Mr. Sandeep both belong to 995 Purity Gold. Which actually is NOT 24 Carat Gold.

Though 100% pure gold is highly difficult to achieve, the highest purity that is avaialble is 9999 Purity i.e. 99.99% pure.

Thus, actually speaking 24 Carat Gold means 9999 Purity.

Today on 22-06-2011, MMTC’s Selling Price for a 10g 9999 Purity Gold Coin is Rs.24,835.00 in Mumbai [actually checked] and the Price of a 995 Purity Gold Coin at http://www.Caratlane.com is Rs. 24,015.00 and at the NSEL the price of 10g 995 purity E-Gold is 23,520.00 as displayed on their respective websites. Tanishq is selling the 10g Coin of 9999 purity today at 26,306.00 .

So in my opinion the Best Investement would be to buy physical gold of 9999 purity [AND NOT JUST 24-Carat] from MMTC. Readers may make their research by visiting 2 or 3 showrooms/banks/outlets on the same day and then share with the readers for the benefit of all and not to make this blog for their own benefit.

Regards to all.

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Manshu June 22, 2011 at 8:42 PM

Sudhir, Thanks for your comment; just curious to know how this affects selling price? Do companies like Tanishq deduct less money while buying back higher purity gold?

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Sudhir June 25, 2011 at 10:09 AM

Thanks for reading my views!
Actually I am only buying at this point in time and have not actually collecteted any info about selling and details thereon. Right now MMTC does not buy back the gold coins. But as I am taking the exercise now for buying and sharing tha info, I shall certainly share when I go and sell my investements/possessions. So can not comment or reply the query now.

However, with my contributed infor above, if some readers can add better inouts for buying or selling for better returns, it would benefit larger populace.

I checked with the Spot Exchange, but the whole process appears to be too complex and therefore difficult.

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Manshu June 28, 2011 at 8:11 PM

Thanks Sudhir.

I asked about selling because that’s where people are facing issues. So, just wanted to see if you have that figured out or not. Thank you for your comment.

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mahesh kumar July 31, 2011 at 5:51 PM

gold invest is loss better to invest in bank term depost

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Venkat August 1, 2011 at 1:44 PM

You may want to be also aware of the difference in Gold purity in 24 Karat.
I just checked out the MNC Bullion , which is relatively lower in price, but realized they offer 99.9 , while the prices where you might find higher would be is 99.99 purity. Well i guess that makes the Banks and MNC bullion on a level playing field.
Here are today’s prices from different Banks and MNC Bullion:
This is 99.9
MNC Bullion : Rs. 124387 for 50 gms
Corp Bank : Rs. 121024 for 50 gms + Taxes

HDFC : Rs. 136178 for 50 gms (Mudra gold. not sure whatz the difference)
SBI : Rs. 124500 for 50 gms (not sure about what purity they are offering)

Gng to check with GRT Jwellers and Tanishq to know their quotes. Watch out

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Manshu August 1, 2011 at 7:03 PM

Thanks for the input Venkat – higher purity is good, but the issue with the sale makes me think it’s simply better to buy a gold ETF. Not knowing how much they will deduct at the time of buying from you, and then creating all kind of hassles on top of that. It’s just too discouraging.

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DEEPALI G. August 4, 2011 at 1:04 PM

THANKS

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DEEPALI G. August 4, 2011 at 1:08 PM

thank u for all, i am getting idea about purchase gold coins

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Harinathan.K August 4, 2011 at 9:26 PM

I am a regular customer of Gold Coins/Bars from MMTC,one of the largest importer of Gold in India. The only limiting point is that MMTC does not have sales outlets other than Metros. Their rates are also quite attractive.

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Manshu August 5, 2011 at 3:58 PM

How about selling the gold coins? Have you tried that, and do they buy it back from you?

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Sayyad August 15, 2011 at 2:13 PM

Manshu,

Thanks a lot for a very informative thread. I’ve a very basic question.
I own a bit of physical gold. If the gold does reach (say) twice its price today or more, where will I go and sell it? Will even the jewellers buy it back at that price? If there’s any other place to sell it, I’d love to know.

Thanks again.

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NRUSINGHA NARAYAN PATRO August 22, 2011 at 12:59 PM

informe me periodically

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Manshu August 22, 2011 at 4:34 PM

of what?

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Raksha August 22, 2011 at 1:18 PM

Hi, my parents bought some gold coins from SBI 2 years back, they were not aware about the fact that SBI won’t buy back the coins. They bought it as an investment for my younger sister. Since banks won’t buy back now what can they do with it if they want to get a return on it? Why are banks selling these coins if they don’t buy it back?

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Manshu August 22, 2011 at 4:34 PM

You can take it to a jeweler and sell it there or get them to make jewelery. That’s about the only thing you can do with it. You will have to inquire at a few jewelers to see who gives you the best rate and least deduction. Banks not buying back their gold has become a huge headache as a lot of people are in the same boat as your parents.

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gopinath September 6, 2011 at 10:01 PM

Banks are trusted source for buying gold coins. By doing a bit of analysis we can save lot of money. We should compare rates among several banks and choose the bank that sells coins at better price.

For example today (Sep 6th 2011), 10 grams of gold at Andhra bank cost 30,321.00 but where as HDFC Bank sells at 34,001.00. The difference is close to 700 Rs. This site http://www.coziie.com/gold-coin-rates provides a nice comparison report.

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Hari September 7, 2011 at 6:00 PM

Can anyone tell which is the best place 2 buy gold in Bangalore.

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fahad September 21, 2011 at 11:54 PM

thanks for info can you tell me manshu from where I can buy cheapest gold coins and where can I again sell it . I m new to this market.

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sandy September 24, 2011 at 8:08 PM

If you want to buy Gold coins/bars in Bangalore, suggest going to Shubh jewelers – they get gold from Rajesh exports (leading gold and jewelery exporters in India).
Shubh doesn’t charge any extra amount other than 1%tax…no making charges etc. Also, their buy back policy is pretty good as well…on every gram of 24 carat gold..they deduct INR 51 on that day’s rate. I have tried it and its great!

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Himanshu October 24, 2011 at 10:59 AM

Sorry to say that their claim of “no making charge” is false. If you compare with prevailing gold rate of the Bangalore market, they charge high, generally their rate for 22 K is approximately equal to that of 24 K rate of market. By this they are charging about 10% more than shown in advertisements. Please check again and write your feedback.

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Simran October 8, 2011 at 2:40 PM

Hi All,

Can anyone please advise, the bst place to buy gold from faridabad ?

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Ahmed October 22, 2011 at 10:10 PM

Hi,
Never buy from banks you will end up paying much higher than market rates..Jewelers if trust one then can go ahead but again will end up paying more anyways less than banks ..
Try Here i feel its the best place to buy physical gold (always good to have it on hand than paper)
Bangalore Refinery http://www.bangalorerefinery.com ,”Bangalore Refinery today is acclaimed for refining nearly 95% of the total gold mined in India”
They update daily gold prices daily..

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Alka C November 5, 2011 at 6:09 PM

Hi Ahmed !

From all the above info I observed that buying from either Banks or Post office is not worth rather we should ahead with buying it form jewellers if it is physical gold

Please add to my info what exactly is Glod ETF ?
How we can purchase one and what are the minimum units that one should buy ?
what are the other charges other than their market rate as on the date of purchase ?
Where to access more info on the same ?
If we want to convert the same in physical Gold then how to go for that e.g if we wish to get the same for jewelry making ?

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Manshu November 5, 2011 at 7:02 PM

Alka – gold ETFs are electronic products like shares which then hold gold. You can’t convert them to gold ever. You will have to buy and sell them on the stock exchange and that’s what they are – mutual fund type things that own gold and whose price moves in the same way as gold.

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Venkat November 5, 2011 at 9:51 PM

Hi Manshu,
That is not true anymore. I bumped across a recent (1 month old) news piece, that now you can take physical delivery, if the EFT value goes above 8 gms. Earlier it was 1 kg. Couldn’t get the news article reference.

However, i find this article from hdfc, gives a gist on Gold ETF, except the physcial delivery part.
http://www.hdfcsec.com/data/docs/education/Sampatti_Gold_ETF_simplified.pdf

Rgds,
Venkat

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Manshu November 5, 2011 at 10:00 PM

No Venkat I don’t think that’s possible. Who will give you the units for gold?

The ETFs that sell on the stock exchange are secondary units that people like you and I trade. The fund creates units for a kilo and then they are traded on the exchange by someone like you and me so unless you have that many units you can’t go to the fund and redeem it.

8 grams is pittance when it comes to exchanging it for gold, and because of expenses 1 unit will never actually represent 1 whole gram – it will always be a bit lower. I think you need to recheck your sources.

That link you sent is not very helpful as far as understanding the creation and redemption mechanism of ETFs is concerned which is what we are talking about right now.

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Venkat November 5, 2011 at 9:41 PM

Gitansh, what you are offering is illegal !

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Manshu November 5, 2011 at 10:05 PM

Venkat – thanks for pointing this comment and bringing it to my attention. I will delete it.

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Rajesh November 7, 2011 at 11:15 AM

Wt about gold coin of 99.50…….??

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readtoawake com December 5, 2011 at 2:02 AM

Throughout the history, the Governments of each country have been printing money and your hard earned money is losing its purchasing value everyday as there are more and more money in the circulation every day.

This loss of value of the money is called inflation and the only way to protect your money from inflation is investing in the real money that is gold and silver. If the inflation goes up, the prices of gold and silver also go up so if you invest in precious metals you don’t need to worry about inflation.

Buying Gold coins is not the best way to invest in Gold. But it is definitely a better investment than buying jewelry.

Personally I invest in Gold based ETFs such as GoldBees and SPDR Gold (GLD). These are paper investments where you invest your money in gold and silver without physically owning them. The expenses are very low of investing in Etfs and you get almost the same return as investing in physical gold

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Ajit December 17, 2011 at 12:09 AM

Personally – I think possession is 90% of the law.
I have gold – I can hold it in my hand – it is mine

You sir have an ETF – I my opinion you have piece of paper at best. Hahaha!

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Manshu December 17, 2011 at 12:17 AM

*At best* I have something that’s as good as gold; *at worst* it’s an electronic blip in a screen & not even a piece of paper. Semantics, semantics 🙂

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mohan December 24, 2011 at 7:49 PM

ETF suck, in an economic crisis like what we are going through currently, the banks controlling the ETF can crash. Where’s your ‘etf blip’ in that case??

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Manshu December 24, 2011 at 8:08 PM

Banks don’t control ETF. Goldbees which is the biggest gold ETF in India is owned by Goldman Sachs, so in that sense you could say that their parent is a large US bank, but that doesn’t mean it’s controlled by them.

But if your base case is that banks are going to collapse worldwide and there is going to be massive chaos in the financial system then there is no point in buying anything but physical gold.

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Rico February 25, 2012 at 9:31 AM

I’ve never possessed physical gold in my life other than that in my mother’s & wife ‘s sparse jewelry, but as I cross 50 years of age I yearn to own it in its most base form…the gold bar . Never had the nerve to buy one however as my age has made me particularly wary of being cheated
Perhaps its a primal instinct!
This from someone who was reasonably successful in the stock market (Transactions which include Gold ETFs)
Onset of mental degeneration ?

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Sujata January 12, 2012 at 2:03 PM

I also very much pleased on this article and it’ll be helpful for me. Thanx alot

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Manshu January 12, 2012 at 9:33 PM

That’s great to hear Sujata!

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Giri February 27, 2012 at 8:02 AM

Hi
I heard that there are some restrictions placed by govt on purchasing gold bullion like on purchase of certain amount the govt is reported about the transaction. Can any one confirm? This is the way to keep tab on purchasers by govt to confiscate I think. Also the increased import duty to 2% of value so as to discourage gold imports. Did any one purchase gold recently and are aware of any restrictions. Thanks.

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Pavan March 5, 2012 at 2:26 PM

Very informative post. The post office option surprised me also. I will check prices in my city and post comparisons. Yes ETF vs Physical Gold is a good debate. May be you should post an article on the pros and cons of each. If I were to choose based on emotional sentiments then I would go for Physical gold. But what are the specific benifits of ETFs, the flexibility to trade anytime.?

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Manshu March 5, 2012 at 5:48 PM

Currently, the big benefit is the ease with which you can buy and sell since the problem with buying physical gold is that you have to pay a heavy premium when you buy it and then it’s not easy to sell it without having to incur some sort of deductions. If you can find a jeweler that buys and sells gold bars or coins without charging any premium or cutting anything while buying it back the that’s a good option.

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RAJIB MAJUMDAR March 12, 2012 at 7:46 PM

i have some gold plate of 24k -99.95%.
with vat + testing crtificate.
1gm———28 pic
2gm———– pic—23
5gm————-32 pic

can i sale to any one other than jeweler ?
do i need any license to do this?
if i am not a jeweler.

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mena March 14, 2012 at 10:49 AM

u can buy gold coins online at good online discounts too through icici bank website. they offer variants too and then collect it from icici bank branch

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sriram March 28, 2012 at 1:49 PM

Hey thanks mena, will go and check out the bank site.. wanted to purchase a coin

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krishnamurthy April 18, 2012 at 7:10 PM

after reading this post iam in a dilemma where can i buy a gold coin whether at bank or post office or through online…..suggest me plz

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chattarjee August 1, 2012 at 3:06 PM

Now write another article about how to SELL gold coins in India 🙂

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Harinathan.K August 1, 2012 at 7:16 PM

In addition to the above well known sources, you can also buy Gold Bars/coins from MMTC Ltd.,from their showrooms -Sanchi. Even about 8 years back itself, I had bought 5/10/20 gm bars from MMTC at competitive rates

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Ajith August 18, 2012 at 4:16 PM

I hear BRPL (Bangalore Refineries) manufactured 24kt coins are the best, safest and cheapest to buy.

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Anilkumar August 27, 2012 at 12:28 PM

Hi,
Where are selling in my gold coin so get more profit,
Have 99.9 Gold coin by sbi bank

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Swapan Deb Ray October 18, 2012 at 11:38 PM

Here are one more option that you can buy gold coin also from Muthoot Finance Limited.

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Chris October 19, 2012 at 10:11 PM

Thanks for the info. I am looking at investing in Gold for my retirement fund, so this is useful information to me.

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abir October 23, 2012 at 9:08 AM

Good info,enough for a new entrant like me.Thanks

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Swagata Guha October 23, 2012 at 10:27 AM

Hi,
I today read an article on business standard that one can buy/sell gold and silver online through ” BULION INDIA ” platform at wholesale price.They are offering their retail clients to purchase gold and silver as if they were buying shares and still use them physically whenever they need them.
Is this is one of the right way of buying bullions? Kindly suggest please

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sandip December 22, 2012 at 5:36 PM

Tanish charges 5% making cost though.

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Shivam January 6, 2013 at 7:08 PM

I daily buy 1 silver coin of 10 gms
Will I get any benefit in future with this
I buy the coin from any local shop then how will I sale this in future…

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surjit singh January 9, 2013 at 1:09 PM

gold price 10grm coin rate 24carat today and next 2year(2015) rate how?

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KK January 20, 2013 at 8:51 AM

Gold or real estate, never days invstement is not yielding much sadly.

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Chad July 20, 2013 at 12:35 AM

Idk if its best to invest in silver bullion at this time, seeing as it really hasn’t exploded like some experts said it would.

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Chintan Shah February 23, 2014 at 8:20 PM

Nowadays,gold coins are sold at very reasonable rates online on various portals & various discount coupons are available online.

At Snapdeal & ebay,you will be suprised to find rates too competitive & that too,delivery at your doorstep.No need to go to Bank & retail shops.

Also,they have Paisapay & Trust Mark which means that after u confirm that the item received is proper & upto the mark,they will make payemnt to the seller afterwards which secures you totally.

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