Buying GOLD/Jewellery from Credit Card

[codenerd]

Hi all,
Some of you may not have an idea about buying gold/jewellery via credit cards. I myself didnt have much idea until I purchased myself.

So recently I purchased jewellery from a big retail jeweller and swiped my cards at their POS machine. Following are the cards I used:
AMEX Smart Earn CC - Got 1 MR point/50rs without capping
AMEX Gold Charge Card - Got 1 MR point/50rs without capping
Indusind Visa Signature Debit Card - Got 125 points on spending 10K
Amazon ICICI Apay CC - Straight 1% cashback to amazon pay wallet

The point of this post is that there are many cards which dont give any reward points on buying gold/silver or any jewellery or atleast they mention that way in their T&C. I used the above cards at their physical store (not online purchase) and got all the due rewards without any issue.

Bonus Tip: Then added the above equivalent amount to Mobikwik Xtra and earned 12% p. a until my bill payment date. That way I kind of earned more money/value out of this transaction/strategy.

Another Bonus Tip: Paid all credit card dues a week before the due date (enjoyed 12%interest p.a until then without any issue!!!) via CRED via DEBIT CARD.
Since I used IndusInd Visa Signature Debit Card (Indus Partner Account. Neither Select, nor Exclusive), I got 3K points which is equivalent to around 1050rs cash redemption.
Basically if you pay your CC bill using Cred by your IndusInd Visa Signature Debit Card, you kind of get 1050rs per 1 lakh bill payment roughly per month per card.

 

[navdeep22]

Just wondering on one more thing, this gold coin, when we sell, how much value will they fetch, say I go to same brands offline store to sell.

Usually similar to 24k price seen online

 

[federer.reddevil]

Right now we can get this Muthoot Gold Coin 1g 999 for Rs 9694 with BoB Credit Card. That is approx 250 less than today market price of 1g 24Kt Gold

https://ajio.page.link/8ZFaBkjTSDJ5wHLq5

 

[shafeekb]

If we are planning to sell the gold coin we should check the bullion prices instead of market price. We can refer the IBJA website for the approximate rate. Market price will be always 1-2 percent higher than bullion prices.

 

[CyberPsych]

Right now we can get this Muthoot Gold Coin 1g 999 for Rs 9694 with BoB Credit Card. That is approx 250 less than today market price of 1g 24Kt Gold

https://ajio.page.link/8ZFaBkjTSDJ5wHLq5

Today market price of gold means, the actual gold's 1g price or the price for which we can buy 1g from a jewel shop?

 

[knight]

Today market price of gold means, the actual gold's 1g price or the price for which we can buy 1g from a jewel shop?

+ 3% gst.

Google's price is generally without GST.
Shopkeepers will charge GST as well.

 

[federer.reddevil]

If we are planning to sell the gold coin we should check the bullion prices instead of market price. We can refer the IBJA website for the approximate rate. Market price will be always 1-2 percent higher than bullion prices.

Mainly people should buy it either as to save it for some time and exchange in future while marriage or something not buy and sell within few days

Today market price of gold means, the actual gold's 1g price or the price for which we can buy 1g from a jewel shop?

Gold 1g price in jewel shop for a coin excl GST



In malabar gold 24KT gold is today 9933 for a coin you have to pay 3% GST extra also I think

 

[federer.reddevil]

Right now we can get this Muthoot Gold Coin 1g 999 for Rs 9694 with BoB Credit Card. That is approx 250 less than today market price of 1g 24Kt Gold

https://ajio.page.link/8ZFaBkjTSDJ5wHLq5

So if you are buying the 1g coin using BoB Credit Card you are saving approx 250 + the 3% GST

 

[karuturi24]

So if you are buying the 1g coin using BoB Credit Card you are saving approx 250 + the 3% GST

When you exchange the coins with ornament, at that time you will have to pay GST.

 

[sousnake]

When you exchange the coins with ornament, at that time you will have to pay GST.

local shop they don't cut gst.

 

[shafeekb]

Mainly people should buy it either as to save it for some time and exchange in future while marriage or something not buy and sell within few days



Gold 1g price in jewel shop for a coin excl GST
View attachment 103748
View attachment 103749

In malabar gold 24KT gold is today 9933 for a coin you have to pay 3% GST extra also I think

We can also buy it for investment purposes, convert credit card to cash and achieving spend milestones in credit cards. So in this case, we have to check the bullion prices instead of market price.

For buying ornaments, I think jewellery schemes are better.

 

[federer.reddevil]

We can also buy it for investment purposes, convert credit card to cash and achieving spend milestones in credit cards. So in this case, we have to check the bullion prices instead of market price.

For buying ornaments, I think jewellery schemes are better.

For buying ornaments you cant say one is better as most jewellers you have to pay via UPI and card also many dont give rewards.

Better to use a mix of both you ask me get gold coins from online when you get it at a discount compared to market price and also invest in jewellery schemes when you are planning to buy jewellery.

I have no plan of buying jewellery this year however when I buy 2 years later gold rate will be more and most of the schemes are 11 months or 1 year so best buy gold coins keep and exchange when we want to buy jewellery also maybe a year before jewellery purchase start a gold scheme.

Best to have both