Bank Refuse to Buy Back Gold
CardBhai has reliably learnt that banks have refused to Buy back gold sold by them during Akshay Trithiya. Banks encouraged customers to BUY Gold during the festive season on their Credit Cards. Now when the customer is in need of money, Banks have blindly refused to Buy Back the gold citing "RBI guidelines prevents them from buying back the gold coins sold to customers. They can pledge the coins and raise money against them.
First of all Banks sell the Gold at 8% premium to what your local jeweller sells at. If you pledge it with a bank, finished they will value it lower than what your jeweller values and they will charge so many hidden fees. Best thing is to AVOID buying gold from banks such as ICICI and HDFC and BUY them only from your jeweller.
First of all Banks sell the Gold at 8% premium to what your local jeweller sells at. If you pledge it with a bank, finished they will value it lower than what your jeweller values and they will charge so many hidden fees. Best thing is to AVOID buying gold from banks such as ICICI and HDFC and BUY them only from your jeweller.
Published by CardBhai @ 8:46 PM
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Had the buyers checked with the banks at the time of making that purchase, they would have been informed that the bank will not buy back this gold. I made that enquiry.
Since ETF has not yet come to India too well, the safest bet is to buy gold from MMTC. Not only is the premium lower (MUCH lower), but also that MMTC, being a trading organisation WILL buy back gold when you go to sell it, at the prevailing gold rate only WITH no deduction, unlike ur local jeweler.
This is sad but true.. banks cannot buy back the gold, but when we buy an asset,we also must ask about the resale..
One other alert - if you are buying diamonds as an investment, forget it. ALL DIAMONDS DEPRECIATE IN VALUE OVER A PERIOD - including, and especially solitaires.
The reason for this is simple - the premium on diamonds in the Indian market is way too huge. Therefore, the intrinsic value of the diamond in ur hand is very low compared to the price you pay for it. When you go to sell it, the buyer will invarianbly be a diamond merchant only.. and he will pay u only the intrinsic value of the diamond.. at the most.
Also, there is no objective criteria for assessing the value of a diamond. it is all very subjective. Diamonds are not an investment at all.
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