Saturday, November 11, 2006

Is it a good idea to buy Gold from Banks?

A large number of Banks in India have started to sell Gold directly to customers via coins and gold bars. Is it a good idea to buy Gold from banks in this format?

Personalfn, a personal finance website says that it is not a good idea to buy Gold from banks due to various reasons.

a) Banks charge more for the Gold when compared to Jewellery story (price may vary from one store to another, they all are less than bank's price). As per Banks the extra charge is for a purity certificate which even a jeweller will gladly provide.

b) You can't sell the Gold bought from bank back to bank. If you are planning to sell it is jewellery, he will offer you less price since the you have already paid more to the bank.

Do read the complete article here and make the decision yourself

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