With gold prices having fallen almost 15-20 per cent in the last fortnight there's been a mad rush to buy gold coins. However, before buying gold coins, you need to check a few things and here they go.
Always remember to compare prices
Remember, that prices of gold coins vary from banks to banks and from jeweller to jeweller. It's extremely important to compare the prices. It's unlike the purchase of a vehicle where the prices would be the same across all dealers. Sometimes, the price differential can be huge.
Banks do not buyback gold coins, while jewellers do
Banks do not buyback gold coins, while most jewellers would. Some jewellers reduce the price by Rs 100 per gram and buyback the gold coins, sold through them.
Prices at jewellers could be cheaper then banks
Prices at a jeweller could be cheaper then banks. However, there are many banks that offer existing customers a cheaper rate. Buying gold coins from private sector banks is more expensive.
Wait for prices to stabilise
Gold prices have been volatile with international gold prices first falling to $1322 an ounce and then recovering to hit $1470 an ounce. It's best to wait for prices to stabilise before you buy gold coins.
Check for “assay” certification
Many banks and jewellers offer gold coins with Essay certification that guarantee their purity. Also almost all the banks offer coins that are packed in a tamper-proof see-through packet. Remember, if you buy gold coins from elsewhere to check for these things.