Gold Coin as an investment option

Traditionally, Gold is considered to be a safe investment option as it is neither perceived risky as stocks nor requires huge investment as in reality/property sectors. And when you consider Gold as investment option, then buying Gold in the form of coins has its own advantages.

1. The associated wastages and making charge is much lesser when compared with Gold Jeweleries
   
2. Coins could be easily converted to Jewelries when required
3. Convenient handling
   
4. Its a good option for Gifts, normally, I prefer gold coins for gifts, as you need not worry about the color, design, size, utility of the gift
   

Source of Gold coins for purchase: Gold coins can be purchased from below options, however, each have their own specifications, rates, discounts etc.

1. Jewelry marts or stores sell custom made coins besides selling jewelries. The price include following components:
   
1. Wastage Charge ranging from 1% - 5%
   
2. Tax (Sales Tax/VAT) - 1%
   
3. Few stores charge making charge as well
   
   Please note that the above are only an indicator, you may have to check with stores directly for accurate pricing. One advantage in buying from these stores is, you could sell the coins back to them. When you sell coins, mostly you would be offered jewelries with same weight, and in some stores you could also get cash back.
   
   
2. Banks like HDFC Bank, ICICI Bank offer Gold coins mostly imported from Switzerland. These banks only sell coins but do not accept/buy coins from consumers
   
3. Selected Post Offices

Hope, this post gives you some idea about Gold Coins as an investment.

Srikanth Ramu

Thangam, Swarnam, Sona, Kanak, Au - All mean Gold

Today (15/Oct/2009), Dhanteras festival is celebrated in some parts of India and the day is considered auspicious to take up new ventures and buy gold. I am starting my new blog http://golddata.blogspot.com, and this is my third blogging initiative, while others being http://srikanthramu.com (http://srikanthramu.wordpress.com) and http://ggears.blogspot.com. So, why a blog on Gold? Well, this metal is a fascinating one and Gold rules the market with its prices touching new heights. Some consider Gold as auspicious, some see it as an investment, few choose it for fashion, but you would hardly find a person disliking Gold. Need less to say, its the favorite metal for majority of people.

In this blog, besides writing about Gold, I've included the Gold price chart from kitco.com that shows the trend in gold prices for the last 6 months. The Graph shows the Gold rates in USD per ounce (oz) of Gold. Also, I've included a link from The Madras Jewellers & Diamond Marchants Association, that shows Gold rates for 22ct and 24 ct in Rupees (INR).

BTW, Wish you all a Happy and sparkling Diwali/Deepavali.

Srikanth Ramu