Gold as an asset can help you create a secure portfolio for your financial goals for its reliable returns even in the worst times and no more sleepless nights due to the volatility. Some accept gold bars of minimum 50 grams with a purity of 99.99% or 24 carat. Many lenders do not accept coins and bars for the purpose of gold loans. Upside: Coins and bars are easier to sell and have lower markups based on the gold amount used as compared with jewelry. This amount is not recoverable when selling your coins or bars. You need to pay 3% GST, at current rates, while purchasing gold coins and bars. Taxes: The taxes on your coins and bars are similar to that of gold jewelry. Maintenance: The storage cost for both gold coins and bars is at par with gold jewelry. Manufacturing costs for bars drop to less than 0.5% of the gold cost and even lower for 1 kilogram bars. The due-diligence requirement for buying a gold coin or bar is the same as in the case of jewelry.Ĭost: The making charges for gold coins range from 2% to 10% over the cost of gold. You can buy gold coins and bars from non-government sources such as jewelers and bullion traders.Ĭredibility: All coins are generally BIS-hallmarked and before making your purchase, you must ask for a purity certificate from your jeweler or trader. These are Bureau of Indian Standards or BIS-hallmarked, which assures 24 carat purity and 999 fineness. The Indian government and MMTC-PAMP sell gold coins known as “India Gold Coin” (IGC). If you are looking for a higher denomination, gold bullion bars are available in 100 grams and 1 kilogram increments. Gold coins are available in different denominations ranging from 1 gram to 50 grams and in different designs. Here’s what to consider when looking at gold coins and bars:Īvailability: Gold coins and bars are available in 22 carat and 24 carat and generally come in tamper-proof packaging. If you intend to add physical gold to your portfolio but don’t want to pay the markup associated with gold jewelry, you can consider gold coins or bullion bars with fine gold content of 22 carat or 24 carat (995 and above). You can get a gold loan for up to 75% to 90% of the gold value at interest rates of as low as 8% per annum. Upside: You can tap into the value of your gold jewelry even before you sell it using gold loans from banks and non-banking finance companies (NBFCs). Indexation is basically an adjustment to the purchase price of the asset or investment to reflect the effect of inflation, at a rate declared by the Income Tax department.īe sure to consult your tax advisor to determine what taxes you may owe. If you hold onto your gold jewelry for at least three years, your gains are taxed at a flat 20% rate with the benefit of indexation. If you sell it within three years of buying it, your gains are taxable as short-term capital gains at normal tax slab applicable to you without any rebate. You, instead, have to pay a capital gains tax on the profits made from your sale of jewelry. You won’t be able to recoup this when you resell your jewelry. Taxes: You have to pay 3% goods and services tax (GST), at current rates, when purchasing gold jewelry. For instance, few insurance companies offer protection to jewelry as a part of their home insurance plan and costs associated with it differ depending on the cost of your jewelry and the plan you opt for. Similarly, insurance costs to protect your gold jewelry also varies from one general insurer to another. For instance, a safe deposit locker at a well-known private bank ranges anywhere between INR 750 – 12,500 depending on the location of the branch, size and the kind of locker that you opt for. The locker rental can vary depending upon your choice of bank. This might involve locker rental and insurance costs. Maintenance: When you purchase physical gold, you need to have a safe space to keep it. This cost of making the jewelry is a cost that you may not be able to retrieve when you sell your gold jewelry. This means the purity of gold has been verified under a government process, which will be important if you choose to resell the jewelry.Ĭost: The cost of buying jewelry involves the cost of gold and a manufacturing cost that ranges from 5% to 20% over and above the cost of gold. If you’re buying it as an investment, make sure you buy hallmarked jewelry. If you’re keen on buying gold jewelry, consider the following:Īvailability: Almost all jewelers sell gold jewelry in India.Ĭredibility: You should do your due diligence while choosing the jeweler for your purchase. Gold jewelry has traditionally been considered a safe way to invest in gold by Indians, especially in rural areas and small towns, partly due to the lack of awareness or the lack of access to invest via other ways. There are many ways in which you can invest in gold, and here are the most popular ones.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |