Newspapers and TV channels are flooded with ads coaxing you to invest in gold coins on the auspicious occasion of Akshaya Tritiya. Banks too are selling gold coins. Now everyone wants to take advantage of this day and many people do so with an eye on the future- invest in gold for a child’s marriage, for personal future needs, as an alternative to stocks/FDs etc.
This necessarily means we may want to sell the gold coins at a later date when the need arises.
So we can just walk back to the bank and sell back the gold coin for money. Right?
Wrong!!
This article in Hindu Business Line (click here ) dated 14 May 2010 tells us about the pitfalls of buying such coins. When buying a gold coin from a bank, one has to pay a higher price than the market rate and at times a service charge as well. Apparently a bank may not buy them back or accept as collateral for a loan. Not all jewellers will pay you cash for it either- you may have to buy jewellery instead. Read the above article for more details.
So do your homework before investing in gold coins.
Happiness Always…
Hi Archana, how are you? Miss your comments on the 4IW platform.
Well, thank you for your blog which speaks of the much needed facts we ought to know about buying gold coins from banks et all.
Keep up the good work.