Best Deals for buying Gold, at cheapest price

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haris5sani

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HI Guys,

I am creating separate thread exclusively for buying Gold as an Investment or Jewellery or Gifting purpose.

Recently Gold has been declared as best asset in past 5 - 10 years as compared to stock exchanges, mutual fund, fixed deposit etc.

This link demonstrates how gold has emerged as best investment option during last few years clearly suggesting that gold is behaving more like a currency rather than a commodity.

Moreover, there are some good deals floating on time to time on various websites like homeshop18, pepperfry etc.

As today of now, price of gold on bullion market is hovering around 3030rs per gram.

Remember that this is the price on bullion market but if you want to buy it from any shop/website, include VAT on that.

Yesterday, pepperfry was offering 1 gm gold coin of 995 purity Free on purchase of above 15000rs, so making 2 X 2gms(999 fineness) + 1gm(free of 995 fineness) in just Rs 15,400rs ~ 3080rs per gram.


Suggestion are welcome to decide what is the best price & good time to buy & earn some quick money using Gold as investment.


Thanks all !!
 
Praks said:
Why not go with ETF :) Works out good & safe.
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Well ETF has its own Pros & Cons:


Benefits: Gold ETFs provide an opportunity to investors to accumulate gold over a given period of time. Since it can be purchased in small quantities, one can plan the procurement as per future requirements, say, for the marriage of children, etc.
Moreover, there is no risk of theft and one need not worry about the storage cost (as in case of physical gold) because such units are held in demat or paper form. In the case of physical gold, one ends up paying extra for making charges as well, but there is no extra charge applicable in gold ETFs. When needed, one can exchange them in multiples of 1 kg units of 0.995 purity.
Besides, unlike gold coins and bars, for which most jewellers offer only an exchange and not a buyback, gold ETFscan be sold at transparent prices across India. Even in terms of taxation benefits, gold ETFs are way ahead of the physical gold. No sales tax, VAT or securities transaction tax is applicable on gold ETFs. As units of such funds are traded like stocks on the exchange, it is eligible for the long-term capital gains after one year, unlike physical gold, which is eligible for long-term capital gains after three years. Besides, unlike physical gold, investors don't have to pay wealth tax on gold ETFs.


Drawbacks: Most of the above-mentioned advantages come at a cost in the case of gold ETFs. A small asset management fee is charged by the fund house, so the return is slightly less than the actual increase in the gold price. Moreover, there are additional costs involved at the time of buying and selling in the form of brokerage or commission. Another drawback with gold ETFs is liquidity; some ETFs are illiquid, which impacts their buying and selling flexibility. Hence, investors should consider this as a factor while investing in gold ETFs and should stick to funds that are liquid.

Source
 
Pepperfry is giving one free Gold Coin on every purchase of Rs.15,000 or more, so you can go ahead and buy 4gm gold coin at Rs.15448 and get another 1gm for free. This way the total cost you need to pay for 5gm is just Rs.3071- which is lowest from all websites n current gold price.

How to get:-

  1. Visit here
  2. Add 2 qunatity of 2gm gold of 999 fineness coin to your cart selling at Rs.7729 each
  3. Login or register
  4. Update or select shipping details
  5. Choose payment option and cliick “Proceed to pay securely” (Do not use any coupon)
  6. A pop up window will open > Choose your free 1gm gold coin (see imag below)
  7. Pay the amount 15358 for 4gm + 1gm free (15458/5=3092 per gm)

 
Main issue with gold is reliability. I doubt if online buying of gold will take off, unless it is from the "trusted" brands like banks, tanishq, GRT, TBZ etc.

As Praks mentioned best online option is ETF - another drawback of ETF that was not mentioned is the taxation aspect.
 
Note: Past performance is not indicative of future gains :)

Aside from that, ETF is probably the best bet. No hassle of storing gold either. Usually trying to sell gold coins etc also incurs some cost from the jeweller/buyer etc, so probably around the same?
Buy a good ETF that has good trading volume so theres always a market for it. I think the GoldBees one is the biggest with quite decent buy-sell volumes.

Theres also e-gold that was introduced by NSEL, which ppl favor over ETFs. AND you can go get delivery of physical gold if you want as well.

Invest in Physical Gold online with E-Gold
E-Gold V/s Gold ETF: Which is better way to invest in gold? - AskTheExpert
Gold is best bought the e-way. Here’s why - Money - DNA
 
Almost all Jewellery houses, banks and others sell Gold.

But if you are thinking of using this as an Investment, you should know that banks do not buy Gold. The jewellery houses will not pay the market value. There would be a lot of hassle in selling the Gold. The jewellery houses depend on the customers to convert it into ornaments. That is a dead investment and there is no return on that.
 
By the way, if you take gold coins online with discount coupons. You will not get the same price when you plan to sell them to local jeweller :) so why take ?

ETF is the way to go.
 
sankar_45 said:
There would be a lot of hassle in selling the Gold. The jewellery houses depend on the customers to convert it into ornaments. That is a dead investment and there is no return on that.
Click to expand...

Praks said:
By the way, if you take gold coins online with discount coupons. You will not get the same price when you plan to sell them to local jeweller :) so why take ?
Click to expand...

I have good relations with my family jeweler & earlier i have sold him gold coin bought in some offer of homeshop18 & it gives me direct 600rs profit few months back.
It was like some 2gms 999 fineness gold in 5800rs from homeshop18 offer & sold for 6400rs to him when gold price was 33500rs few months back.
Since gold comes in BIS Hallmarked packaging & certificate, which ensures genuineness & if that packaging is removed, u can't claim its 100% true unless it need to be tested by goldsmith(which requires extra money).

So plz ask first from ur respective jeweler / goldsmith that what amount 1 gram 999/995 fineness gold coin can fetch you & crack the best deal ?
 
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