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.

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{ 145 comments… read them below or add one }

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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