The price of gold is determined by the daily price of gold minus sales tax and value added tax.
Gold coinsare available at authorized SBI branches, where customers can purchase different denominations from 2 grams to 50 grams. SBI ensures purity and good prices based on the daily price of gold. SBI Bank sells 24 karat gold coins that come in a tamper-proof package to prevent any damage. The coins are sold in denominations of 2, 5, 8 and 10 g.
The rectangular bars are available in 20 & 50 g. These coins or bars are usually imported from international mining companies, so banks charge 8-10% more than the market rate. There are several ways to buy gold today, especially if you look at it from an investment perspective. SBI gold sovereign bonds are another option, offering an assured interest rate of 2.5 percent per annum.
You can enjoy the ease of investing through Internet banking, SGBs have a duration of 8 years, with an exit option starting from the fifth year, issued by the central government, are tradable on the stock exchange. The TDS is not applicable to them and can be used as collateral for loans. If you have completed KYC (Know Your Customer) procedures with the bank, you can go to a branch of your bank and buy gold coins. Some banks also allow such a purchase on the net banking portal. It is necessary to deposit a minimum of 10 grams of raw gold (bullion, coins, jewelry, excluding stones and other metals).
However, there is no upper limit for deposits. This is because 24 karat gold is malleable in its pure state and jewelry made with this type of gold breaks easily. Investors can also make investments in sovereign gold bonds and gold mutual funds that have systematic transfer plans and systematic investment plan options. The State Bank of India (SBI) offers the Renewed Gold Deposit Plan (R-GDS), a fixed gold deposit system. I would like to highlight some inconveniences before making the decision to buy gold coins, since a bank in India does not buy back and sell gold coins, in case you like to liquidate them you have to contact the jewelers. A PAN number is required to purchase SBI gold if the value of your gold purchase is INR 50,000 or more. In conclusion, investing in gold coins through SBI is a great way to diversify your portfolio and hedge against inflation.
It is important to understand all the details before investing in gold coins so that you can make an informed decision about your investments.