All banks are selling Gold coins in their own fancy rates when the actual declared rate appears on news papers every day.No one sells at the stipulated market rate...Why this anomaly??? More over we buy gold coins from all these sources and why they are not buy back it for cash?If we go to Jwellers they will only buy the coins in exchange for their Jewelery?Is this a right trading acumen?Comments please?
Banks sell at their own fancy rates due to 2 reasons: 1. They certify the purity of the gold and add some handling charges to the price of the gold. Hence the fancy price. 2. Because many people prefer to buy the gold certified by banks to the gold brought from the local jeweller. To buy gold from individuals for cash, the company, be it jewellers or the bank, need to get special permit from the government. This would require more disclosure from the companies. So most banks and jewellers will not be willing to take the special permit. The exchange of gold doesnt require the special permit. Note: this information was told by a bank manager
