Suggestion for purchasing Physical Gold...

[vagabond153]

I am looking to make a physical gold purchase around 50-60 grams (approx.. 5 lakhs), preferably in stores like PNG, PNG sons, Ranka etc in Pune city. With current rate it comes around 5 lakh of purchase.

Let me know which would be the best card for this purpose.

Existing Cards:
- Amex Travel Card (Joined last month)
- Amazon ICICI
- SBI Cashback
- Axis Flipkart

Am I open to getting a new card for this?: Yes

Additionally, I can stagger the purchase in 30 days.

Any other offers running for gold, credit card etc please let me know.

TIA

 

[drsel]

American Express Platinum travel card for 4 lakhs

 

[vagabond153]

American Express Platinum travel card for 4 lakhs

Yeah I was thinking in same lines... should I split it in milestone one by one (1.9L & 4 L)?

 

[drsel]

Ask the shop how much commission he will charge for American Express

Also ask if you buy 4 lakhs worth gold coins and sell it back to him on the spot, how much will he pay you?

 

[AllThatStuff]

Ask the shop how much commission he will charge for American Express

Also ask if you buy 4 lakhs worth gold coins and sell it back to him on the spot, how much will he pay you?

Interesting prospect…keen to know the answer 🤔

 

[drsel]

Interesting prospect…keen to know the answer 🤔

I think everyone can ask his local gold shop the same question

 

[vagabond153]

Ask the shop how much commission he will charge for American Express

Also ask if you buy 4 lakhs worth gold coins and sell it back to him on the spot, how much will he pay you?

Its pretty clear... 3% GST on buying or selling.... I have brought some last month and they did not charge any extra for Amex

 

[drsel]

Its pretty clear... 3% GST on buying or selling.... I have brought some last month and they did not charge any extra for Amex

Also shop profit margin when selling
Also Shop profit margin when buying.

Physical shop has high overheads like rent, electricity, staff salaries, insurance against theft.
On top of that they have to make a profit out of you.

 

[vagabond153]

Also shop profit margin when selling
Shop profit margin when buying

Agent did not mention anything like this, care to explain it? He just mentioned as per market rate will be calculated buy or sell plus/minus 3% GST

 

[drsel]

Agent did not mention anything like this, care to explain it? He just mentioned as per market rate will be calculated buy or sell plus/minus 3% GST

That is the marketing talk he will give you to tempt you to buy from him

You need to actually carry out the transaction and see how much cash you receive.
The shop has to make a profit when selling and again when buying.
This is in addition to the 3% GST, which will go to the government

 

[vagabond153]

That is the marketing talk he will give you to tempt you to buy from him

You need to actually carry out the transaction and see how much cash you receive.
The shop has to make a profit when selling and again when buying.

For me selling is not the case, it will be utilized in family

 

[dolphinmark]

When you are buying you will pay
1. Spot price of that day for gold
2. Making charges. This is 12-20% for jewelry and 3-6% for gold bars/coins
3. GST @ 3%

When you sell back the shop will probably give 95 to 100% of the gold weight in spot price of that day.
So you will have to bear the making charges and GST

 

[drsel]

For me selling is not the case, it will be utilized in family

But only when you sell you can determine your profit or loss

 

[vagabond153]

When you are buying you will pay
1. Spot price of that day for gold
2. Making charges. This is 12-20% for jewelry and 3-6% for gold bars/coins
3. GST @ 3%

When you sell back the shop will probably give 95 to 100% of the gold weight in spot price of that day.
So you will have to bear the making charges and GST

Correct. I am opting for coins/bars etc. (pure gold0 as of now, so no making charges involved. For pure gold buy/sell 3% to be paid by customer

 

[vagabond153]

But only when you sell you can determine your profit or loss

Yes.

So Amex it is? Should I split it in 1.9 L first and then rest 2.1L? so that milestones achieved in steps, does it matter btw?

 

[sumeet]

You can also buy online via ajio & myntra I believe

 

[darkjediknight]

Yes.

So Amex it is? Should I split it in 1.9 L first and then rest 2.1L? so that milestones achieved in steps, does it matter btw?

Doesn’t matter. You can do the full 4L

 

[drsel]

When you are buying you will pay
1. Spot price of that day for gold
2. Making charges. This is 12-20% for jewelry and 3-6% for gold bars/coins
3. GST @ 3%

When you sell back the shop will probably give 95 to 100% of the gold weight in spot price of that day.
So you will have to bear the making charges and GST

So this means that minimum 6% loss is a certainty

 

[drsel]

You can also buy online via ajio & myntra I believe

Here you will pay 8--10% more than the spot price for gold coins.

 

[vagabond153]

Here you will pay 8--10% more than the spot price for gold coins.

Why so? I confirmed yesterday for 24k they have pure rings and for 22k they have these coins sold at market rate +3% GST