Can I buy gold coins at the post office?

by Manshu on April 21, 2010

in Investments

A few days ago I wrote about buying gold coins in India, and in that post I wrote about banks selling gold coins. What I didn’t know at the time was that even post offices have started selling gold coins in India!

The post office sells 24 carat gold coins of the denominations of 0.5 grams, 1 grams, 5 grams and 8 grams. Right now, this service is quite limited, and not every post office sells gold coins.

Buy gold coins from the post office

Buy gold coins from post office

In fact this option is available only to people living in the following cities:

  • Chennai
  • Trichy
  • Madurai
  • Coimbatore
  • Salem
  • Delhi
  • Ahmedabad
  • Surat
  • Vadodara
  • Pune
  • Nagpur
  • Nashik
  • Mumbai

This link has a list of all the post offices within these cities that sell gold coins. I read somewhere that post offices in Jharkhand have also started selling gold coins, but didn’t find them in the postal department’s website.

There are several similarities in buying gold coins from the post office and buying them from a bank; for one – if you are buying gold coins worth more than Rs.50,000 – you will have to furnish a copy of your PAN card. For another – you will pay a certain premium because the post office says that it charges a commission of 4% on the gold coins. However, this premium might still be less than the one charged at a bank.

If you are looking to buy gold coins – then this opens up one more option for you – it might not be the cheapest option, but it is probably cheaper than buying from a bank, and offers much of the same confidence.

Image by Motoyen

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