The Tanishq Gold Rip-Off
Reader @moneybloke (Sunil) writes in (on the Physical Gold Con Job video):
Surprise surprise, just called Tanishq and asked to buy a 50 gm gold coin. here is the lowdown
MCX price of 995 22400 per 10 gms
Tanishq price of 999 2750 per gm
making charges 4.5%
I am guessing that there may be VAT on this as well ( 2%).
Since I needed to buy physical Gold, asked my sister in law to buy it in Dubai. She paid 23400 per 10 gm for coin ( there was making charges though nominal )
Wonder what makes a brand like Tanishq so arrogant to charge this kind of prices. Is it the so called Reliability factor in a largely unregulated industry.
On Monday will do research on Banks ripping customers off in Gold. Should make for interesting reading
Indeed, this is such a rip-off. The cost of buying gold in Dubai was more than 20% cheaper! I'm assuming it was a 999 gold coin. Tanishq effectively charges about 2,900 rupees per gram, wherewas you get it for about 2400 per gram in Dubai.
Considering how cheap air tickets are, a buyer of say 10 lakhs worth of gold- which is less than half a kg and will fit into your pocket - might as well fly to Dubai, buy the gold and come back. Flights from Delhi seem to cost around Rs. 19,000, so you should be able to do the whole thing in 30K - which is just 3%!
Brands like Tanishq and indeed most banks rip you off on physical gold - don't bother.