HDFC bank has become the first bank in India to sell physical silver.
I was unaware of this development till I received a comment, and had a small commentsation (comment + conversation – word that I just  invented; likely to cause embarrassment many years from now) that I thought is worth reproducing here for others.
- Manshu March 3, 2011 at 8:30 am [edit]
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- Loney March 3, 2011 at 8:35 am [edit]
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- Manshu March 3, 2011 at 8:49 am [edit]
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Oh – I didn’t know about that – and they are charging a fat premium I guess, and then won’t be able to buy it back either?
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- Loney March 3, 2011 at 8:56 am [edit]
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- Manshu March 3, 2011 at 1:43 pm [edit]
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Well then I better get ready for some more angry comments now!!!
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If you are going to buy silver from banks then please keep the following two factors in mind:
1. Banks charge a premium when compared with your local jeweler. Buying silver from a bank may give you the satisfaction about purity of silver since a bank is more reputable than a jeweler next door, but will also mean that you pay more.
2. Banks will not buy back the silver from you. Many people have found that when they buy gold bars from banks they pay a premium, and when they try to sell it to jewelers – the jewelers ask for a deduction, so the retail investor gets dinged at both ends of the transaction.
These are points that you should keep in mind, and factor in your decision making process.
There are several people who think that paper gold or silver is not safe and for them it’s not even an option to buy anything other than physical gold or silver.
Then there are some people who are not comfortable with buying gold or silver from jewelers and since bigger brands like Tanishq also charge a premium they don’t mind going to a bank.
The point I’m trying to make is you need to be cognizant of the premium, and the fact that you will have to figure out how you’re going to sell this silver later on.
It’s not necessarily a good or bad thing because that depends on how you look at it, but you certainly need to be aware of these facts.
Just got duped..
Bought 500 gms silver @ 3370/50 gms (discounted for being a classic customer)
paid 67400 /kg vs market price of 49915/kg
we should sue these banks.. will go to bank tomorrow & see if anything can be done.. will keep you all posted
HDFC Rates
http://www.hdfcbank.com/common/gold_rates.htm
Market price
http://www.sify.com/finance/gold_rates/
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