The Physical Gold Con Job

How they rip you off when you buy jewellery, or, indeed, physical gold. Actual case from a reader who mailed in.

He exchanged 35 grams of gold for 25 grams of gold (as ornaments) and still had to pay Rs. 4,000 extra! See how it works, and why jewellery is a terrible investment.

(7 minutes)


surprise surprise, just

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



Thanks Sunil - what a find!

Thanks Sunil - what a find! I'll put this in a blog post, this is such a rip-off!

Hello Deepak, Thanks for

Hello Deepak,

Thanks for the specifics of buying and selling gold in various formats.
I have bought some gold ETF (Avg cost: Rs 1950/ unit) as well as some biscuits from reputed jeweler (Avg cost: 1700 /gm).
Shill I hold, sell.......what is your views on short term..(3-6 months) and long term (5 yrs) period from now?

Thanks, Regards

Hi Deepak, Thanks for the

Hi Deepak,

Thanks for the insight on dealing with gold of various forms. Kindly advise your take on buying gold from MMTC