Gold buying for future emergency

[Raja]

Hello All,
I have read all posts regarding gold but couldn’t get clear picture about gold investment. This is my first post here, so please be kind 😀

I am a very simple person who buys 916 joyalukkas , Malabar gold coins during sales and keep it as emergency or pass it on as generation wealth. I am NOT keen on exchanging gold coin to jewellery.

I don’t have any bullion contacts or gold traders contact. just a simple Jewellery shop gold buy back or pawn shop during emergency is my idea like majority of Indians.

with this in mind, should I continue to buy 22ct 916 jewellery (Malabar, joyalukkas) gold coins or 24ct 999 bullion (BRPL, RSPL, MMTC, Kundan) coins?


Thank you

 

[lucifer]

Hello All,
I have read all posts regarding gold but couldn’t get clear picture about gold investment. This is my first post here, so please be kind 😀

I am a very simple person who buys 916 joyalukkas , Malabar gold coins during sales and keep it as emergency or pass it on as generation wealth. I am NOT keen on exchanging gold coin to jewellery.

I don’t have any bullion contacts or gold traders contact. just a simple Jewellery shop gold buy back or pawn shop during emergency is my idea like majority of Indians.

with this in mind, should I continue to buy 22ct 916 jewellery (Malabar, joyalukkas) gold coins or 24ct 999 bullion (BRPL, RSPL, MMTC, Kundan) coins?


Thank you

interested to know the same too

 

[CARDBITRAGE]

If you are looking at it from an investment perspective, then gold coins don't make much sense in my opinion. But in the context of an emergency, physical gold makes more sense. Just make sure you are paying minimal and reasonable making charges(5-8%) on the same.

 

[Raja]

Thanks BLK.

i will pay attention to that while buying gold coins.

I am interested to know what purity 916/999 to buy as physical coin/bar for emergency selling purchase .

 

[WhoU]

Hello All,
I have read all posts regarding gold but couldn’t get clear picture about gold investment. This is my first post here, so please be kind 😀

I am a very simple person who buys 916 joyalukkas , Malabar gold coins during sales and keep it as emergency or pass it on as generation wealth. I am NOT keen on exchanging gold coin to jewellery.

I don’t have any bullion contacts or gold traders contact. just a simple Jewellery shop gold buy back or pawn shop during emergency is my idea like majority of Indians.

with this in mind, should I continue to buy 22ct 916 jewellery (Malabar, joyalukkas) gold coins or 24ct 999 bullion (BRPL, RSPL, MMTC, Kundan) coins?


Thank you

If you want physical coins then go ahead with whatever gives you better rate.

Divide the price of 916 coin you see by 916 and multiply by 999. See if you get 999 coins at better rate than that, if you don’t then buy 916 else buy 999.

Now coming to investment point, if you just keep it as investment then another alternative could be SGB. Advantage of SGB is that you get 2.5% interest p.a. on the amount invested. Physical gold kept only profits when price of gold increases. SGB gets both benefits, market price increase as well as interest. Also there is better tax treatment on SGB, but nobody selling gold coins pay income tax on capital gains on the profit anyway.

Now downside of SGB is that the liquidity is less. Buy SGB only if you have the intention of keeping it till maturity. You can buy SGB from any broker at discount too.

 

[thanix]

Hello All,
I have read all posts regarding gold but couldn’t get clear picture about gold investment. This is my first post here, so please be kind 😀

I am a very simple person who buys 916 joyalukkas , Malabar gold coins during sales and keep it as emergency or pass it on as generation wealth. I am NOT keen on exchanging gold coin to jewellery.

I don’t have any bullion contacts or gold traders contact. just a simple Jewellery shop gold buy back or pawn shop during emergency is my idea like majority of Indians.

with this in mind, should I continue to buy 22ct 916 jewellery (Malabar, joyalukkas) gold coins or 24ct 999 bullion (BRPL, RSPL, MMTC, Kundan) coins?


Thank you

Are you aware of difference between 22 and 24ct or 916/995/999 purity?

In olden times, 24ct is only gold or pure gold (99.5 or 99.9% depends on purity) which is very malleable and can't be used in jewellery making or it won't last long. So they use 22ct of gold and 2 ct of other metals like copper for jewellery. It is like 91.6% purity gold with remaining 9% copper.

So the prices differ for 22ct and 24ct as latter is expensive. In our homes we always buy 22ct 916 gold coin or jewellery as it can be directly exchanged to jewellery after years for girl child wedding.

Some ppl tell about 24ct gold becomes dull after years but I don't have any experience. So I don't know whether jewellers reduce price for it or hesitant to buy it. In my opinion, you can buy either of them and get value during emergency. Remember you are paying 3% GST and during cash out, they will reduce the value of buy back gold for cash. Only on jewellery you will get full value. I don't know the tax implications of cashing out physical gold. So for investment and if you trust Indian sovereign government not to go bankrupt, you can diversify into SGB apart from physical gold.

 

[Dragon_slayer]

Not sure how valid, gold is for emergency or long-term investment, as most Indians will end up holding it forever. Even if the value of gold goes up in 10 years, still if its never sold then it cant be considered an investment.

 

[Raja]

@WhoU Thanks for responding esp on the math part.

I am not into sgb due to three reasons
1) lock-in for 8 yrs and secondary market is not for simple guys like me
2) we won’t get gold at the end of lock in period and forced to sell off
3) sgb report capital gains as it’s a government product but with physical gold coin … you know ..

coming to the selling part , which is where I lack experience and need guidance,
will ordinary jewellers like joyalukkas , pawn walas, gold resellers respect bullion and give price for 999 subtracting their commission ? Because , these places quote only 916 22ct prices when I saw .

 

[NikhilTravelLover]

Hello All,
I have read all posts regarding gold but couldn’t get clear picture about gold investment. This is my first post here, so please be kind 😀

I am a very simple person who buys 916 joyalukkas , Malabar gold coins during sales and keep it as emergency or pass it on as generation wealth. I am NOT keen on exchanging gold coin to jewellery.

I don’t have any bullion contacts or gold traders contact. just a simple Jewellery shop gold buy back or pawn shop during emergency is my idea like majority of Indians.

with this in mind, should I continue to buy 22ct 916 jewellery (Malabar, joyalukkas) gold coins or 24ct 999 bullion (BRPL, RSPL, MMTC, Kundan) coins?


Thank you

If you can, please share your personal experience of buying and selling gold coins.

1.How much making charges while buying.
2. How much deductions while selling.
3.What practicle issues generally one can encounter
4. How much GST charges.
5.Do you get cash or account transfer while selling.

I am also new. And doing my research on gold coins.

 

[Raja]

@thanixravindran Thanks for taking time out and responding with Knowledge on 22ct and 24ct

I have experience buying 24 ct 999.9 pure MMTC PAMP coins and selling it back in MMTC stores .

but the buy-sell spread is bit not likeable in their official store

I am wondering, whether would pawn shops, gold resellers will quote a higher value for such bullion 9999 bars instead of 916 price .. any first hand experience would help

 

[Raja]

If you can, please share your personal experience of buying and selling gold coins.

1.How much making charges while buying.
2. How much deductions while selling.
3.What practicle issues generally one can encounter
4. How much GST charges.
5.Do you get cash or account transfer while selling.

I am also new. And doing my research on gold coins.

1) Joyalukkas has 5% MC , Tanishq has 8% MC
2) I haven’t yet sold 916 jeweller gold coins
3) I would like to know this
4) 3% gst is standard for gold
5) I expect to sell for cash

I am not sure whether I can buy 916 jeweller coins or 999 bullion gold coins for selling only for emergency purpose. I like to know whether gold resellers , pawn shop keepers will respect and value 999 bullion at its price.

That‘s why the discussion

 

[Predator]

Recently I purchased 2gm 24KT Gold coin (kalyan Jewellers) @ 11215 from Ajio after applying bank offer.
After Delivery, I went to local shop for purity check, he was ready to pay 12300 for that.
Also, as a part of offer, Ajio gave a laptop bag and 500 credit in Ajio wallet

So, whenever any such sale or offers comes , purchase 1 or 2gms of gold .
For investment purposes , prefer 24kt

 

[Banking101]

Recently I purchased 2gm 24KT Gold coin (kalyan Jewellers) @ 11215 from Ajio after applying bank offer.
After Delivery, I went to local shop for purity check, he was ready to pay 12300 for that.
Also, as a part of offer, Ajio gave a laptop bag and 500 credit in Ajio wallet

So, whenever any such sale or offers comes , purchase 1 or 2gms of gold .
For investment purposes , prefer 24kt

10% profit is pretty good

 

[thanix]

@thanixravindran Thanks for taking time out and responding with Knowledge on 22ct and 24ct

I have experience buying 24 ct 999.9 pure MMTC PAMP coins and selling it back in MMTC stores .

but the buy-sell spread is bit not likeable in their official store

I am wondering, whether would pawn shops, gold resellers will quote a higher value for such bullion 9999 bars instead of 916 price .. any first hand experience would help

Small shops or individual ppl who make jewels would love to buy 24ct gold underhand without bill and cash in TN. Gold buying from them has its own dangers like they add more copper when making jewellery or add wax for weight. So effectively they can make a killing.

 

[Makkar]

@WhoU Thanks for responding esp on the math part.

I am not into sgb due to three reasons
1) lock-in for 8 yrs and secondary market is not for simple guys like me
2) we won’t get gold at the end of lock in period and forced to sell off
3) sgb report capital gains as it’s a government product but with physical gold coin … you know ..

coming to the selling part , which is where I lack experience and need guidance,
will ordinary jewellers like joyalukkas , pawn walas, gold resellers respect bullion and give price for 999 subtracting their commission ? Because , these places quote only 916 22ct prices when I saw .

@Raja SGBs are the most beautiful investment, you need to do some research you'll gonna love it.

1) Buying SGB is as simple as buying a stock from Zerodha. Instant discount of 5-10% in secondary market.
2) Extra 2.5% interest yearly
3) Pre mature redemption is possible after 5 years (This part is little tricky)
4) Checkout this https://sgbanalyzer.com/home

 

[CARDBITRAGE]

Which vendor has the cheapest rates on gold coins/bars in India? GRT Jewelers is the cheapest option I have found so far.
PS- I have been investing in SGBs for quite some time, but I want to increase my physical gold holdings now.

 

[CARDBITRAGE]

3) Pre mature redemption is possible after 5 years (This part is little tricky)

It can be sold off at any point it time in the secondary market. Gains if any will be subject to CG.

 

[Deleted member 9785]

@Raja SGBs are the most beautiful investment, you need to do some research you'll gonna love it.

1) Buying SGB is as simple as buying a stock from Zerodha. Instant discount of 5-10% in secondary market.
2) Extra 2.5% interest yearly
3) Pre mature redemption is possible after 5 years (This part is little tricky)
4) Checkout this https://sgbanalyzer.com/home

discount are now around 1-2%

 

[CARDBITRAGE]

discount are now around 1-2%

Now that SGB has been popularized, it is even trading at a premium to the spot price. Sucks that we cannot buy at deep discounted rates like earlier.

 

[littlefinger]

Recently I purchased 2gm 24KT Gold coin (kalyan Jewellers) @ 11215 from Ajio after applying bank offer.
After Delivery, I went to local shop for purity check, he was ready to pay 12300 for that.
Also, as a part of offer, Ajio gave a laptop bag and 500 credit in Ajio wallet

So, whenever any such sale or offers comes , purchase 1 or 2gms of gold .
For investment purposes , prefer 24kt

Looks like interesting does small jewellers buy 24ct coin ? I have never tried buying 24ct coin - which is better to buy 24ct or 22ct coin online . Any tips from buyers experience here ?

Well i am a first time buyer with no idea about online coin buying experience. Thanks