Buying GOLD/Jewellery from Credit Card

[codenerd]

Hi all,
Some of you may not have an idea about buying gold/jewellery via credit cards. I myself didnt have much idea until I purchased myself.

So recently I purchased jewellery from a big retail jeweller and swiped my cards at their POS machine. Following are the cards I used:
AMEX Smart Earn CC - Got 1 MR point/50rs without capping
AMEX Gold Charge Card - Got 1 MR point/50rs without capping
Indusind Visa Signature Debit Card - Got 125 points on spending 10K
Amazon ICICI Apay CC - Straight 1% cashback to amazon pay wallet

The point of this post is that there are many cards which dont give any reward points on buying gold/silver or any jewellery or atleast they mention that way in their T&C. I used the above cards at their physical store (not online purchase) and got all the due rewards without any issue.

Bonus Tip: Then added the above equivalent amount to Mobikwik Xtra and earned 12% p. a until my bill payment date. That way I kind of earned more money/value out of this transaction/strategy.

Another Bonus Tip: Paid all credit card dues a week before the due date (enjoyed 12%interest p.a until then without any issue!!!) via CRED via DEBIT CARD.
Since I used IndusInd Visa Signature Debit Card (Indus Partner Account. Neither Select, nor Exclusive), I got 3K points which is equivalent to around 1050rs cash redemption.
Basically if you pay your CC bill using Cred by your IndusInd Visa Signature Debit Card, you kind of get 1050rs per 1 lakh bill payment roughly per month per card.

 

[Googix]

I recently used MRCC to do a monthly scheme payment at GRT online. works. got reward points also. and spends also counted in 20k milestone benefit.

In this scheme, how much making charges do they waive off when we buy gold?

 

[dadofjohnwick]

In this scheme, how much making charges do they waive off when we buy gold?

Afaik, making charges are fully waived off till this amount. that's what my dad told, i can confirm once and tell tomorrow.
But its upto this amount only. lets say you run the scheme that amounts to 2L, and you buy gold worth 3L; then on the remaining 1L you will have to pay making charges.

 

[Yugi]

I have purchased gold using credit cards and faced no issue or extra charges from the merchant. I guess chain stores won't charge anything extra, maybe small scale shops might charge extra money.

 

[Akash Topder]

Any idea if Indusind Easydiner gives reward points for jewellery purchases?

 

[sankar7000]

Does yes bank MARQUEE give RPs for gold purchaseS?

 

[svijayan86]

In this scheme, how much making charges do they waive off when we buy gold?

Grt jewellers is now available in amex rewards multiplier 😊i bought using the voucher i bought in rewards multiplier but it took around 1 hours for the initial setup for the voucher to be redeemed..it seems this setup was there for other cards but for amex they did vouchagram setup newly

 

[dadofjohnwick]

Grt jewellers is now available in amex rewards multiplier 😊i bought using the voucher i bought in rewards multiplier but it took around 1 hours for the initial setup for the voucher to be redeemed..it seems this setup was there for other cards but for amex they did vouchagram setup newly

only instant vouchers right. not actual reward multiplier

 

[Pravas]

Need expert option on the below.

I have HDFC infinia and mostly I don't use the max cap of smartbuy bonus points. I am planning to use this to buy Amazon shopping vouchers and use that to buy gold coin vouchers of kalayn/Jos Lukas/PC jeweler from Amazon. The goal is to accumulate gold coins at a discount and use it as exchange while buying jewellery for wife or other family functions.

Here are few of my questions

1. Can Amazon shopping voucher be used to buy gold coin vouchers from Amazon.

2. Which of the these big jewellery chains take less markup (making changes) for buying gold coins and do they provide 100% value during exchange while buying jewellery ?

3. Has anyone done the cost analysis on buying gold coin in this way and whether it is worth the hassle.

Please note that I am not comfortable buying gold coins directly online as I have heard that you don't get proper bills from jewellery shops and that may cause issues while doing the exchange.

Thanks in advance for your help.
Posted again as this thread is having more activity and answers.

 

[prem2311]

Need expert option on the below.

I have HDFC infinia and mostly I don't use the max cap of smartbuy bonus points. I am planning to use this to buy Amazon shopping vouchers and use that to buy gold coin vouchers of kalayn/Jos Lukas/PC jeweler from Amazon. The goal is to accumulate gold coins at a discount and use it as exchange while buying jewellery for wife or other family functions.

Here are few of my questions

1. Can Amazon shopping voucher be used to buy gold coin vouchers from Amazon.

2. Which of the these big jewellery chains take less markup (making changes) for buying gold coins and do they provide 100% value during exchange while buying jewellery ?

3. Has anyone done the cost analysis on buying gold coin in this way and whether it is worth the hassle.

Please note that I am not comfortable buying gold coins directly online as I have heard that you don't get proper bills from jewellery shops and that may cause issues while doing the exchange.

Thanks in advance for your help.
Posted again as this thread is having more activity and answers.

1. Yes. You can use asv to buy coin vouchers. But, You have to buy only coin vouchers, not jewelry vouchers. In GRT you can use any voucher to buy coins as I bought this week.

2. GRT 2%, Kalyan 2%, Tanisq 8%, Sri Kumaran 2% but no voucher. You can ring to your local shop to find the current price with making charges. If a coin has a hallmark all the jewelry gives 100% value. So all major chain's coins will be accepted for 100%.

If coin-making charges less than or equal to 2% then it's good. More than 2% is no no.

3. First cost-effective is to invest in SGB if you have 8 years lock-in period. second, invest in GOLD ETF funds. The last one is the physical coins.
In First two ways you can't use your CCs.

You can buy it from reputed online such as Amazon, tatacliq, and Ajio. But, you have to verify the sellers are direct companies. Ex: if it malabar coins means the seller should be malabar gold and diamonds. Mostly they won't ask for bills while redeeming for jewellery. But, if they have doubts you can show your bill to verify.

 

[sm9811911]

Need expert option on the below.

I have HDFC infinia and mostly I don't use the max cap of smartbuy bonus points. I am planning to use this to buy Amazon shopping vouchers and use that to buy gold coin vouchers of kalayn/Jos Lukas/PC jeweler from Amazon. The goal is to accumulate gold coins at a discount and use it as exchange while buying jewellery for wife or other family functions.

Here are few of my questions

1. Can Amazon shopping voucher be used to buy gold coin vouchers from Amazon.

2. Which of the these big jewellery chains take less markup (making changes) for buying gold coins and do they provide 100% value during exchange while buying jewellery ?

3. Has anyone done the cost analysis on buying gold coin in this way and whether it is worth the hassle.

Please note that I am not comfortable buying gold coins directly online as I have heard that you don't get proper bills from jewellery shops and that may cause issues while doing the exchange.

Thanks in advance for your help.
Posted again as this thread is having more activity and answers.

In my experience, bills not required for gold exchange. They don't rely on bills, they melt and check accuracy.. So online coins are as useful as offline.

 

[Pravas]

1. Yes. You can use asv to buy coin vouchers. But, You have to buy only coin vouchers, not jewelry vouchers. In GRT you can use any voucher to buy coins as I bought this week.

2. GRT 2%, Kalyan 2%, Tanisq 8%, Sri Kumaran 2% but no voucher. You can ring to your local shop to find the current price with making charges. If a coin has a hallmark all the jewelry gives 100% value. So all major chain's coins will be accepted for 100%.

If coin-making charges less than or equal to 2% then it's good. More than 2% is no no.

3. First cost-effective is to invest in SGB if you have 8 years lock-in period. second, invest in GOLD ETF funds. The last one is the physical coins.
In First two ways you can't use your CCs.

You can buy it from reputed online such as Amazon, tatacliq, and Ajio. But, you have to verify the sellers are direct companies. Ex: if it malabar coins means the seller should be malabar gold and diamonds. Mostly they won't ask for bills while redeeming for jewellery. But, if they have doubts you can show your bill to verify.

As already told I am going to do this for gold jewellery purchase only not investment purpose. Just trying to see if I can somehow extract some more value with this extra workarounds.

Thanks for your detailed information.

 

[prem2311]

As already told I am going to do this for gold jewellery purchase only not investment purpose. Just trying to see if I can somehow extract some more value with this extra workarounds.

Thanks for your detailed information.

See if you are planning to purchase after 8 years for your child or someone else. Then SGB is best. That time also you can purchase jewelry.

The main purpose of the coin purchase is to avoid gold inflation. So, at least it should be mid-term or long-term.
If you are planning to buy jewelry within a year then buying coins now and redeem for jewelry is not the best option. it may be works or not works based on the market fluctuations. because you are paying an extra 5% i.e. 2% making charges 3% GST.

So gold should rise at least 10% to get a minimum gain of 5%. If the coming year if gold rises to 10% from now then ok. if not then no use. So do your math.

If you are lucky and gold rises to 20% within a year it's a party then.

But, You have an advantage here because of Infina. if you bought an ASV voucher from hdfc gfytr and gained 10% advantage first then you can try short-term as well.

 

[Pravas]

See if you are planning to purchase after 8 years for your child or someone else. Then SGB is best. That time also you can purchase jewelry.

The main purpose of the coin purchase is to avoid gold inflation. So, at least it should be mid-term or long-term.
If you are planning to buy jewelry within a year then buying coins now and redeem for jewelry is not the best option. it may be works or not works based on the market fluctuations. because you are paying an extra 5% i.e. 2% making charges 3% GST.

So gold should rise at least 10% to get a minimum gain of 5%. If the coming year if gold rises to 10% from now then ok. if not then no use. So do your math.

If you are lucky and gold rises to 20% within a year it's a party then.

But, You have an advantage here because of Infina. if you bought an ASV voucher from hdfc gfytr and gained 10% advantage first then you can try short-term as well.

How about for short term purchases (within 1 year) I accumulate ASV and when needed directly buy jewellery vouchers only to eliminate the extra 5% for the coin purchases. But I can see that other than tanishq, other stores like Kalyan/PC/Joylukkas has very less value denomination like 2000 INR. I am not sure how many such vouchers they will accept in a single bill.

 

[prem2311]

How about for short term purchases (within 1 year) I accumulate ASV and when needed directly buy jewellery vouchers only to eliminate the extra 5% for the coin purchases. But I can see that other than tanishq, other stores like Kalyan/PC/Joylukkas has very less value denomination like 2000 INR. I am not sure how many such vouchers they will accept in a single bill.

In amazon you can purchase 10k single vouchers for Kalyan GRT Joylukkas. You have to go through terms and conditions to check these doubts. Most of them accept 10 vouchers for a single bill. But, verify clearly before buying vouchers.

You have to do more than that means you have to make separate bills.

Also, as someone mentioned here there is a limit for the purchase of ASV and APV per month in hdfc gyftr.

These are the limitations. plan accordingly.

 

[prem2311]

Which voucher you are saying sir?

https://www.grtjewels.com/

It's a goin coin voucher from amazon
2% is making charges for gold coin

 

[CHOCOPANDA]

1. Yes. You can use asv to buy coin vouchers. But, You have to buy only coin vouchers, not jewelry vouchers. In GRT you can use any voucher to buy coins as I bought this week.

2. GRT 2%, Kalyan 2%, Tanisq 8%, Sri Kumaran 2% but no voucher. You can ring to your local shop to find the current price with making charges. If a coin has a hallmark

If I buy jewellery online..then is there hallmark given on it or not

all the jewelry gives 100% value. So all major chain's coins will be accepted for 100%.

If coin-making charges less than or equal to 2% then it's good. More than 2% is no no.

3. First cost-effective is to invest in SGB if you have 8 years lock-in period. second, invest in GOLD ETF funds. The last one is the physical coins.

Which one are saying about Etf funds.

In First two ways you can't use your CCs.

Voucher purchase or sgb gold purchase or Etf fund

You can buy it from reputed online such as Amazon, tatacliq, and Ajio. But, you have to verify the sellers are direct companies. Ex: if it malabar coins means the seller should be malabar gold and diamonds. Mostly they won't ask for bills while redeeming for jewellery. But, if they have doubts you can show your bill to verify.

 

[prem2311]

If I buy jewellery online..then is there hallmark given on it or not

Which one are saying about Etf funds.

Voucher purchase or sgb gold purchase or Etf fund

If you buy jewelry online it will be hallmark. But, not worth it. It has high price compare to same shop. It's only gold coin can be considered if you find any offers online. Jewelry i.e. ornaments is big no.

GOLD ETF Funds is mode of investment in demat form for gold. Google it for more info.

1. SGB if you okay with 8 year lock in period.
2. If you ok to invest in mutual funds in gold then go for Gold Etf fund.
3. If you only want physical form then buy gold coin

 

[CHOCOPANDA]

If you buy jewelry online it will be hallmark. But, not worth it. It has high price compare to same shop. It's only gold coin can be considered if you find any offers online. Jewelry i.e. ornaments is big no.

GOLD ETF Funds is mode of investment in demat form for gold. Google it for more info.

1. SGB if you okay with 8 year lock in period.
2. If you ok to invest in mutual funds in gold then go for Gold Etf fund.
3. If you only want physical form then buy gold coin

Thank you bro for this detailed reply.

 

[sandesh]

If you buy jewelry online it will be hallmark. But, not worth it. It has high price compare to same shop. It's only gold coin can be considered if you find any offers online. Jewelry i.e. ornaments is big no.

GOLD ETF Funds is mode of investment in demat form for gold. Google it for more info.

1. SGB if you okay with 8 year lock in period.
2. If you ok to invest in mutual funds in gold then go for Gold Etf fund.
3. If you only want physical form then buy gold coin

even 5yrs is okay for SGB

 

[herefordeals]

Grt jewellers is now available in amex rewards multiplier 😊i bought using the voucher i bought in rewards multiplier but it took around 1 hours for the initial setup for the voucher to be redeemed..it seems this setup was there for other cards but for amex they did vouchagram setup newly

Not able for find grt on reward multiplier. Can you please help with a link or screenshot. @svijayan86

only instant vouchers right. not actual reward multiplier

Also didn't find instant voucher also. @dadofjohnwick