Golden tips on buying gold

Golden tips on buying gold

http://gallery.bizhat.com/data/1923/...jewellery1.jpg

From investment point of view, one should invest in bars, coins and not jewellery. You may not get a good price for jewellery because of making and processing charges involved in it.

If you sell gold after keeping it for less than three years of buying it, you have to pay 30% capital gain tax. Tax will be 20% if you sell after three years.

Should one invest in gold or bars, coins?

Ans :From investment point of view, one should invest in bars, coins and not jewellery. You may not get a good price for jewellery because of making and processing charges involved in it.

What is the best way of buying gold?

Ans: If it is from the investment point of view, you can choose between gold biscuits and rare coins, special coins, gold coins, international coins in Indian markets. It will have same prices as in international markets. And when the exchange trade funds will come to market, it will certainly be a better alternative.

Why do gold prices vary from shop to shop?

Ans: Gold is an unorganized market right now, while when we trade in commodities futures, you have a fixed price and you a certificate if you are buy something. As far as gold prices are concerned, you get a benchmark from TV or newspapers about the current rate and depending on your need as per demand and supply, shopkeepers set the rate and quote you.

That's why the rates differ from shop to shop. In my opinion, you should not look at the short-term gains of Rs 100 to Rs 400 and sell gold for this profit. Hold it for a longer period until you get good margins.

What is the best way of selling gold? I buy gold from banks.

Ans: We can buy gold from banks but banks don't buy back from us. So we have to sell it in open market. It is true that there is some sort of emotional attachment with the gold, but you have to decide as to what do you want - keep it or book profit like in shares.

Important points to keep in mind:

* Buy gold bars and coins instead of jewellery for investment. You may not get a good price for jewellery because of making and processing charges involved in it.
* Look for hallmark or BIS sign on gold bars and coins. It is a sign of quality and purity.
* Buy only from a well-known dealer or bank.
* If you sell gold before three years of buying it, you have to give 30% capital gain tax and 20% if you sell after three years.

Quote:

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Originally Posted by film

Golden tips on buying gold

http://gallery.bizhat.com/data/1923/...jewellery1.jpg

From investment point of view, one should invest in bars, coins and not jewellery. You may not get a good price for jewellery because of making and processing charges involved in it.

If you sell gold after keeping it for less than three years of buying it, you have to pay 30% capital gain tax. Tax will be 20% if you sell after three years.

Should one invest in gold or bars, coins?

Ans :From investment point of view, one should invest in bars, coins and not jewellery. You may not get a good price for jewellery because of making and processing charges involved in it.

What is the best way of buying gold?

Ans: If it is from the investment point of view, you can choose between gold biscuits and rare coins, special coins, gold coins, international coins in Indian markets. It will have same prices as in international markets. And when the exchange trade funds will come to market, it will certainly be a better alternative.

Why do gold prices vary from shop to shop?

Ans: Gold is an unorganized market right now, while when we trade in commodities futures, you have a fixed price and you a certificate if you are buy something. As far as gold prices are concerned, you get a benchmark from TV or newspapers about the current rate and depending on your need as per demand and supply, shopkeepers set the rate and quote you.

That's why the rates differ from shop to shop. In my opinion, you should not look at the short-term gains of Rs 100 to Rs 400 and sell gold for this profit. Hold it for a longer period until you get good margins.

What is the best way of selling gold? I buy gold from banks.

Ans: We can buy gold from banks but banks don't buy back from us. So we have to sell it in open market. It is true that there is some sort of emotional attachment with the gold, but you have to decide as to what do you want - keep it or book profit like in shares.

Important points to keep in mind:

* Buy gold bars and coins instead of jewellery for investment. You may not get a good price for jewellery because of making and processing charges involved in it.
* Look for hallmark or BIS sign on gold bars and coins. It is a sign of quality and purity.
* Buy only from a well-known dealer or bank.
* If you sell gold before three years of buying it, you have to give 30% capital gain tax and 20% if you sell after three years.

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I would like to add that in my experience the price of Gold if you are selling for scrap would be the same for jewellery or coins as long as the carat is the same. It all depends on the weight. When I buy jewellery I simply remove the stones and non-gold items like wire in bracelets and weigh and pay! More info to compliment this article can be found at Selling Gold for Cash | Best Prices | Best Price for Gold of via this excellent forum!