[aadya]

Originally Posted by xway

t.

I purchased some from Joy Alukkas Gurgaon yesterday.

There was an offer of 0% making charges, which I was not able to understand, so need inputs from fellow members on what is the missing piece -

Yes rising gold prices are good for the jewellers as their inventory is entirely gold. Some times I have also come across steep discounting in the Wastage/making charges(i would consider it as making charge,investment and profit put together) with reputed jewellers.

Most often they are slow moving pieces occupying their display for a long duration. Though Gold perse will not loose value, when stored properly for, even for decades, some pieces do not attract the buyers.

If the caratmeter shows the value right and after double checking the weight, you can invest in it if the piece interests you. You have just mentioned wastage , there should have been making charges which gives a profit apart from the gold price.

[carboy]

Originally Posted by krcustoms

A few years ago an Indian family from Australia bought a gold brick which was supposed to be 22c. when they took it to Australia they wanted to safe keep it in a bank. the bank had a simple rule. only 22c gold can be kept in the lockers. the bank did the test and guess what they found the fold to be only 18c pure even thought it was sold as 22c.

I have used lockers in both India & the USA & no bank ever knows what you keep in the locker - i.e. the bank person moves out before you open/empty the contents of the locker. I am not sure how this Australian banks check what you keep in the locker.

And why should the bank even care what you keep in the locker? You can't really even complain to the bank if something is missing from the locker or exchanged because they can't open the locker without your key & you can't open the locker without your key.

[.sushilkumar]

Originally Posted by xway

This thread seems inactive since long, whereas in this hyperinflation times Gold is making its mark as a stable investment.

Speaking from experience in Noida, I have been to Kalyan & likes. they were not ready to buy back the same gold they were selling. The sales man were not at all convincing & pushy from First step.

I typically stick to Tanishq in GIP & CP. Have exchanged, wife's bangles & Mangal sutra from them with few others. Process was transparent including melting etc. yes, they are costly a bit but comes with peace of mind.

[am1m]

Originally Posted by .sushilkumar

Speaking from experience in Noida, I have been to Kalyan & likes. they were not ready to buy back the same gold they were selling.

This is the question I had. While gold certainly might be a good investment to hedge and to diversify, I always thought that meant gold bars, sovereigns, or ETFs, not jewellery.

Does it makes sense to treat gold jewellery as an investment? I don't trust that even the reputed jewelers will buy back gold jewellery at anywhere near the same price as they sell. Always assumed that would be more a distress sale situation if it means one need to sell jewellery, or perhaps to get rid of something one never uses anyway.

[attinder]

Jewellery is not an investment and personally, I don't invest in any physical gold as the tax is high or the purity is doubtful. Sovereign gold is best as you also get interest on it.

For buying physical gold, buy if a close friend or relative is selling it, get it evaluated and pay a little extra.

[.sushilkumar]

Originally Posted by am1m

This is the question I had. While gold certainly might be a good investment to hedge and to diversify, I always thought that meant gold bars, sovereigns, or ETFs, not jewellery.

Does it makes sense to treat gold jewellery as an investment? I don't trust that even the reputed jewelers will buy back gold jewellery at anywhere near the same price as they sell.

Personally, I never consider Jewelry as investment but you know ladies are always on lookout to refresh the cupboard with new one's .

With Tanishq , you only loose the making charges. That's their stated policy although i am yet to try it.

I stick to SCB for investment purpose. I remember a SBI employee melting her 24K , 50G gold bar in Tanishq in front of me and getting the sock of 1 G less post melting.

[Thad E Ginathom]

I would never consider jewellery as an investment, unless, perhaps, one is in the market for collectors' items. They have to make a profit selling it to us, however they name their profit in the strange language of the Indian gold trade, making charges, wastage, etc, and... tax. And whoever buys it back has to make a profit too.

Gold is a very expensive ornament*. Unless one is very lucky with world events and gold value at the time of selling. I remember a time in UK when jewellers were selling their stock for scrap, because it was worth so much. Late 80s? I sold about a pound (hmmm, about 450gr) of silver scrap from my hobby bench. Because the silver price followed the gold price.




*Well, ok... it does not become worthless as we walk out the shop, like many things we buy. It has a basic per-gr value. But I wouldn't buy it for profit. Unless I was making something from it! Which I no longer do.

[thanixravindran]

Gold jewellery is still considered an investment in traditional families much like real estate to be passed on to the next generation. At least in TN, the unwritten rule is girl child gets the family gold and boys get the estate. Physical gold as investment is changing in the urban setting due to change in mindset but even then it is still prevalent especially if there is a girl child in the family. It will inevitably used to exchange during wedding with latest designs but value is accrued over the years. Consider it as SIP equivalent.

[Thad E Ginathom]

Originally Posted by thanixravindran

Gold jewellery is still considered an investment in traditional families ...

Is it not also often regarded as something that the wife can pick up and take, in the event that she needs to? Even in happy families: her personal safety pot.

[thanixravindran]

Originally Posted by Thad E Ginathom

Is it not also often regarded as something that the wife can pick up and take, in the event that she needs to? Even in happy families: her personal safety pot.

I didn't fully get the context of your question. After marriage, yes the gold is used as safety pot for the lady of the house and sometimes as source of conflict with in laws. But I have mostly seen them pawned (Is it a correct word?) in pawn shops and not essentially sold. There used to be a stigma associated with pawn shops earlier. Now a days gold loans are more prevalent with banks and many are using it. In fact, one of our family friend uses this gold loan with a nationalised bank as safe deposit during short term visit to USA rather than trusting a locker. I don't understand how its better but was told it works out safe at the same cost. Have seen frauds and fights in both.

We have to see the obsession with gold to believe the stories associated which may not go for next few generations

[SmartCat]

Saw this signboard at an apartment complex. "Gullak Gold" generates 5% pa higher returns than normal Gold.
https://gullak.money/goldplus/



From what I understand, Gold jewellers get access to Gold immediately, without keeping any inventory. And for this facility, they pay interest, part of which is paid out to 'Gullak' customers.

https://www.youtube.com/watch?v=d5e6_UFKm5U

[carboy]

Originally Posted by SmartCat

Saw this signboard at an apartment complex. "Gullak Gold" generates 5% pa higher returns than normal Gold.
https://gullak.money/goldplus/

Attachment 2565984

Website offers very little info about who is behind this. I had to look at other places to find out who are the founders of the company. I would be very skeptical just based on this.

I would be happy with my 2.5% interest from SGBs which come with a sovereign guarantee

[SmartCat]

Originally Posted by carboy

Website offers very little info about who is behind this. I had to look at other places to find out who are the founders of the company. I would be very skeptical just based on this. I would be happy with my 2.5% interest from SGBs which come with a sovereign guarantee

Guess so. And Digital Gold is not regulated by a central govt agency either (unlike bonds or ETFs or MFs). So if there is a fraud, there is no simple recourse for investors, other than knocking on the door of courts.

[Gansan]

Originally Posted by thanixravindran

In fact, one of our family friend uses this gold loan with a nationalised bank as safe deposit during short term visit to USA rather than trusting a locker. I don't understand how its better but was told it works out safe at the same cost. Have seen frauds and fights in both.

The bank will insure the gold because it is accepted as a collateral for the loan. The cost may be passed on to the borrower in some form though. What we keep in our own bank lockers is at our own risk, because the bank only hires out the locker to us doesn't know the contents we keep in it. But what we keep in the lockers can also be insured by taking a policy if we wish, and it is the correct thing to do.

If somebody breaks in to the bank locker room and makes away with our contents, the bank has no liability. It is safer than keeping at home though, because of the usual three or more tiers of security involved.

@ Smartcat, the name oddly rhymes with "Good luck, gold!" in my mind and sets off alarms!

[vaibhav_a_a]

After the duty whammy on budget day, the govt seems set on doubling the whammy by upping GST. News doesn't seem very widely reported:

https://www.deccanchronicle.com/news...r-to-5-1812031.

If this happens it will

- Make SGB and Gold / Silver ETFs more lucrative as investment avenues.
- Close the short window of opportunity to buy bullion created by reducing custom duty.
- Boost jeweler margins as the rise will be directly passed on to consumers.

I wonder what other landmines exist in the path of the bullion investor this year...