Everybody in life in any way get close contact to buy gold, a human can be what ever the religion, caste but all are well connected with gold in some way.Recently one of my friend in urgent need of money he thought to borrow from his neighbor, after planning his commitments he come forward to sell his gold coins which he bought. On that day he has 5 gold coins in his hand which weighs 8 grams each. When my friend went to the same shop were he bought and they told the rate on that day which Rs.24200 and they invited to take their own jewels on exchange offer. But my friend is in very urgent need of money and he asked for the same, but the shop person refused to pay full amount as he quoted. Now they ready to pay only Rs.21780 which is less of Rs.2420 which is near by 10% Rs2420*5= Rs.12100 which is the net loss for my friend while selling his gold coins.
One of the way to save money from earlier days to now for rich and poor is to buy gold for lower rates. But now it becomes fashion to buy gold at any time whenever we have money in our hand. Its all are savings, so no time factor to buy. Many of the people do not know the disadvantages of gold coins. Lets know in below article in detail.
Who all sell Gold coins today?
Before 6years gold coins are being sold by only jewellery shops but now Banks and Post Office also sells gold coins. In Post offices and Banks they are selling in different denomination of weights from 0.5 gram to 50 gram coins. Many of the leading branded jewellery shops sells gold coins from 1 gram to 100 gram and some in order basis. In this banks and post office sells pure gold of 24 carat which is 999.99 purity. I remember one of the article saying that Government is importing gold coins from Switzerland for the sale through finance mart. But in jewellery shops both 22 carat and 24 carat gold coins are available.
Money not possible from Banks and Post Offices
Many of the people thinks when gold coins bought from banks and post offices are easily sell-able at any jewellery shop but many of the shops will take pure gold coin in 22 carat rate which is not 100% purity gold. So we cannot return back to banks and post office for our emergency needs to exchange as cash. Some of them also deducts 10% when which we are unable to exchange as an ornaments or jewels. So shop persons they do not buy other shop gold coins as they are afraid of their quality and standard.
False Offers in Festival time
major festival in India completes recently and many of the shops gives gold in discounted price which from 7-10% in wastage which they charge but that time they give for an full waiver free wastage. But shop people might increased in rates and this offers are available for more than 8grams coins and not for 1g and upto 7g. Some times we can argue and get some discount in any jewellery shops but in Post office and banks we are not possible to do the same. But totally shop person do not give anything free at any time.
Huge Price Difference
Banks and Post offices are selling for huge price and the reason behind this is they charge service tax for the gold they sold. But many of the shops they do not add or charge service tax so it can be save some money. Indian people never stops bargaining with shop keeper, which is possible in jewellery shops but not possible in banks and post offices which they sold at tag price which given to them. Before some years price difference is also depends on quality of the gold sold out. But now a days due to heavy competition jewellery shops and others increased quality with price.
What is the solution to buy gold and how to enjoy full profits?
Hope now readers would know the problem of buying gold coins directly. Emergency times it may not help us in full. But now a days we have more opportunities and ways to invest in gold and earn profits. Some of them are Gold ETF, Gold Savings fund, E-Gold, SIP in gold.
Gold ETF : It is the direct investment done in gold as done like share market. Only thing is to have demat account separately and. One unit gold is equal to 1gram gold. Now a days 13 companies are there in field and more to come as requirement and savings never ends at any time. But tax part is being counted when we sell gold after 1year which they charge 10.% and for more than that will occur an 20.6% tax for long term.
Gold Savings fund : It is the fund which invested in Gold ETF. No need of demat account needed for this method. We can buy gold for any small amount from Rs1000 every month in SIP mode and it can be sold out at any time for the current market price. Long term ax applicable for this scheme which 20% and capital gain tax is an optional depending on individual income and tax paid every year.
E-Gold : It is only traded in National Spot Exchange and demat account is needed. It depends on ups and downs of price and also same tax details are applicable for this scheme also. Who ever needs to see full profit might take profits at middle to avoid tax part and enjoy profit.