Online Gold Bar Purchase In India
Important things you should know about making an Online Gold Bar Purchase In India
In India, buying gold is a great way of investing your money. People give their friends gold as gifts on their birthdays, weddings, and other celebrations. Indians see gold as a sign of purity and wealth.
Since the price of gold has been increasing over the years, it is a worthy tool of investment you can take advantage of if you want to amass wealth. If you don’t want to purchase physical gold but you want to invest in gold because it has high returns, you can contact certain financial institutions in India to help you so that–they will give you a gold certificate in return instead of physical gold, as an evidence that you own a certain amount of gold.
There are important things you should know before buying gold bars online or offline in India so that you don’t end up making costly mistakes. You can buy gold bars in India, let’s discuss some of the most important ones below.
Buying gold through jewelry websites
In India, many jewelry websites have simplified the process of buying gold. You can buy online gold bars or gold coins from them. The transactions are similar to normal online transactions where you order items and they are delivered to you. bluestone.com and caratlane.com are some of the examples of jewelry websites in India that you can buy gold bars or gold coins from. If you don’t want to travel to a physical gold store in India to buy gold bars, this would be a great option for you.
Gold Exchange Trade Fund (ETF) is a form of a mutual fund where money is invested in gold. Usually, this fund performs excellently because gold is usually appreciated. So, you will get higher returns when you invest in Gold Exchange Trade Fund more than other types of investment. You will get heavily rewarded if you invest in gold.
Retail buying of gold
This is the most popular means of buying gold in India. It is a physical way of buying gold. As a customer who wants to buy gold, you will walk into any jewelry showrooms and pick the gold bar or gold coin of your choice. In India, another way you can purchase gold in bulk is by buying it directly from sellers who want to urgently sell their gold to meet their pressing needs–it is not illegal. Retail buying of gold in India can be done in two ways: gold bars or gold coins and finished gold jewelry. You will spend more buying the finished gold jewelry because they include the cost of producing it. So, buying pure gold bars or gold coins is cheaper than buying finished gold jewelry.
Wholesale buying of gold
The wholesale buying of gold is not the same as buying other commodities. Due to the utility and prices of gold in the economy, wholesale buying is not permitted in India. But you can buy large quantities of gold at lower prices by trading them in the gold trading markets–these gold trading markets usually have large quantities of gold in various weights and sizes. Gold bars and gold coins are part of these large quantities of gold. Usually, in India, it is jewelry shop owners and gold merchants that buy large gold quantities from the gold trading market. So, if you are not a gold merchant or a jewelry shop owner, it will be difficult for you to buy gold using this wholesale means.
Online gold bar purchase via banks
You can buy 24-carat pure gold online from different banks in India such as Axis Bank, HDFC, ICICI, and others. They provide customers with the option of purchasing gold bars online. As a customer, all you need to do is to log in to your online banking account, make your order for purchasing gold and visit the closest bank branch to collect your gold coin or gold bar. A lot of banks give their customers the highest purity of gold and they also give small denominations beginning from 0.5g up to 100g so that their customers can easily buy. When you buy gold bars online in India, they will deliver them in a tamper-proof package with a certi-card that guarantees its purity.
Why do gold prices vary in various cities of India?
If you don’t know how gold prices work in India, then you should know that gold prices vary in different cities in India. The gold prices for 24 karats and 22 karats are not the same in different Indian cities.
One of the reasons for the difference in gold prices in different Indian cities is because India does not mine a large quantity of gold, so they import the gold into the country. Union Bank, Yes Bank, HDFC Bank, ICICI Bank, and State Bank of India are some of the big banks that import gold into India. Institutions like STC and MMTC have also certified organizations that are permitted to import gold into India. These banks and organizations import gold at international prices. That means you will buy gold bars at a higher price in India if the international price of gold increases. There is nothing like a standard price of gold in India because gold prices in India fluctuate and each city or state in India has a different price for gold.
Another reason why the price of gold is different in various Indian cities is that some local taxes and levies are attached to buying gold. Every city in India has a different price for 24 karats and 22 karats gold. Apart from that, the local bullion association in a specific Indian city or state determines the price of gold in that city or state too. That’s why the price of gold differs from city to city. In India, the prices of gold are revised twice each day and they reflect the trend in the international markets.
Which city or state in India has the cheapest price of gold?
Like we mentioned earlier, the prices of gold in different Indian cities or states vary. But there is a city in India that has the cheapest price of gold–Kerala is the only city in India that currently has the cheapest prices of gold in terms of 24 karats and 22 karats. Karnataka is another city in India that you can buy cheap gold from. In Bangalore, the 22 karats gold rate is cheaper than the rates in the north. A lot of southern cities in India have cheaper gold prices than the west and north.
Here are some gold rates for 22 karats in major cities in India.
- For Mumbai, the gold rate is Rs 49,500.
- For Delhi, the gold rate is Rs 49,200.
- For Kolkata, the gold rate is Rs 49,810.
- In Bangalore, the gold rate is Rs 47,730.
- In Hyderabad, the gold rate is Rs 48,420.
- In Chennai, the gold rate is Rs 48,420.
- In Ahmedabad, the gold rate is Rs 49,310.
- In Kerala, the gold rate is Rs 46,950.
You can see that Kerala currently has the cheapest gold rates in India, thus making them the best city you can buy our gold from. But the fact that you got gold bars at a higher price in any Indian city doesn’t mean that the quality will be more than the person that got it at a cheaper price in another Indian city–you are sure of getting the best quality for whatever price you got the gold bars.
The prices of gold differ in different Indian cities. You can buy gold bars online or offline in different ways in India. We are sure you found this guide helpful.