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Gold coins through Post Office- Rate, Features and much more
Gold is commonly found in the household which comprises of jewellery, coins and certain gold objects. But, there are many other ways to be in possession of this precious metal than the most common aforementioned ones. In fact, some of these ways do not even deal with physical gold, but provide similar benefits. Irrespective of the purpose being adornment, expenditure on gold is considered an investment. Moreover, it is referred to as one of the safest investments because it is an excellent hedge against inflation.
Before we get into purchase of gold coins through post offices and its rates, let us briefly look into gold as investments, factors and benefits of gold investment and the different types of gold investments. This is to have a better insight into the gold market.
Gold, as a precious metal, is highly preferred in India; its significance stems from the rich history of the nation with its diverse traditions and cultural importance. The predominant form of gold consumed in the country is gold jewellery. In fact, India and China together comprise of the major percentage of gold jewellery consumption across the world. But the per capita gold ownership in India is below average.
India’s huge population accounts for 17% of the entire world’s population which contributes to high gold demand (of 20-25% of world’s annual gold output), but has a low per capita gold ownership. The estimates from websites like Gold Eagle suggest that the total private gold holdings in India are about 15,000 metric tonnes which is 9.6% of the world’s gold stock. It is to be noted that gold mined in its entirety is around 160,000 metric tonnes.
Gold is an ideal metal, but not as much an ideal investment. Nevertheless, it is still preferred for many reasons--high liquidity being one of them, given below are a few more factors.
As discussed in the previous subtopic, gold has played a big role in Indian households for many generations. It is lovingly passed down to family members during festivals, weddings, and other such occasions. This yellow metal is indestructible in the greatest sense. It doesn’t corrode, rust or tarnish unlike other similar metals, and can be moulded to required shapes and forms. Its colour and aesthetics are much preferred too.
Gold, as described previously, is an excellent hedge against inflation. Its price is directly proportional to an increased cost of living. Investors have noticed the gold prices rise and stock markets plunging during high-inflation periods. Gold is observed to have a good store value and many get influenced to invest in gold when there is a loss in the local currency value.
Gold investments can occur in the form of paper gold which behaves like stocks in the stock market. Diversifying investment portfolios means to make investments on various unrelated stocks and bonds to reduce volatility and risk. The trend in stock market of the relationship between gold bonds and other stocks are of opposites as perceived by some investors, i.e., when stock price crash, gold price don’t and vice versa. Therefore, a combined investment is considered a better option.
Just how gold is a hedge against inflations, it retains its value in times of financial crisis and geopolitical uncertainties as well. Gold is often referred to as ‘Crisis Commodity’ as it outperforms other investments during crisis.
Types of gold investments are broadly classified into two categories; they are:
As the name suggests, physical gold investments deal with actual gold. This gold investment is the conventional gold investment wherein a physical transaction to obtain gold item is done. One can visit a jewellery store, bank, or post office etc. to complete the transaction of money for gold. The examples of this gold investment type are:
This gold investment, on the other hand, includes online gold that can be converted to physical gold in certain cases. Basically, an investor buys physical gold replacements online, in the denominations of multiples of gram(s), of 24k purity with a starting investment of 1 gram. Paper gold investments have multiple benefits, from ease of obtaining and securing the gold investment to tax benefits. The different types are:
More about investments on gold coins
Gold coins in India have played a significant part in various dynasties, starting from around the Gupta dynasty to this age. It was a sign of prestige and wealth; in some kingdoms gold coins were normal transactional currency. Gold coins now are the second popular choice after jewellery in terms of buying. They’ve become a necessity in India, especially because gold coins play a major role in some Indian festivals such as Akshaya Tritiya, Dhanteras etc.
These coins can be purchased from jewellers, banks, non-banking finance companies, or e-commerce websites. It can now also be purchased through post offices! Gold coins are found in denominations of 0.5 grams, 5 grams, 10 grams etc. in the gold market.
Gold coins are considered a better investment choice, in comparison, to other physical gold investment options. This is because they can be bought in a minimal denomination of 0.5 grams. It is also highly preferred because of its compact size which makes safekeeping lot easier. Coins are better than gold jewellery because they can be easily moulded into jewellery and they don’t go out of trend.
Purity of the gold sold: Purity of gold can be measured either by its fineness or its karat value. The karat value is more commonly used as the measure of purity. This (purity) is a major concern for customers investing in physical gold because purity of physical gold can be ascertained by cross-verifying; unlike paper gold wherein the mentioned denomination of the purity is enough.
Indian Post offices offer pure, branded, nationally and internationally certified gold. Furthermore, they are both reliable and affordable. It can be bought off the shelf from a convenient location around anytime of the year. This is done with the ideology of supporting and strengthening a customer’s outlook of a Post Office. Therefore, buyers can be assured of being provided with pure and branded gold coins which is of 24k purity and 999 fineness.
Hallmarked gold coins: The Bureau of Indian Standards is the organisation that ensures the purity of gold sold in the market is genuine. All legal pieces of gold items have a BIS stamp which guarantees the purity and the fineness of the yellow metal. It adheres to the international standards of purity and safeguards the investor’s interests.
Gold coins sold through post offices are BIS marked in accordance to the BIS standards set by Metals and Minerals Trading Corporation of India.
Denominations of available gold coins: Gold coins can be sold for various denominations like 0.5 grams, 5 grams, 8 grams, 10 grams, 20 grams, and 50 grams. The availability of lower denominations helps post offices reach a wider base of customer.
Packaging and availability: The packaging is tamper proof which avoids duplication and are equipped with anti-counterfeit feature. Therefore, the gold coins sold from post offices are safe and can be trusted as it is Government backed.
Post offices for gold coins are convenient and are more accessible because of the high networking and the large customer credibility across different sections of the society.
Ease of selling: Gold in general has high liquidity and doesn’t go out of demand in India.
Gold coins in India have easy liquidity and can be sold whenever one requires money. There is a never-ending demand for gold in India and these gold coins are required to draw more value over time.
There is a ‘buy back’ option with Indian gold coins through MMTC approved stores. MMTC will repurchase the Indian Gold coin which has to be intact in the tamper proof packaging and with the original invoice, at gold base rate which was prevailing. It is to be noted that the post office will not buy it back.
|Names of the city||Price for 1 gram gold of 24k purity 19th September 2019||Price for 8 gram gold of 24k purity 19th September 2019|
|Bangalore||₹ 3,722||₹ 29,776|
|Chennai||₹ 3,758||₹ 30,064|
|Delhi||₹ 3,875||₹ 31,000|
|Mumbai||₹ 3,864||₹ 30,912|
|Hyderabad||₹ 3,758||₹ 30,064|
|Kolkata||₹ 3,890||₹ 31,120|
The Indian government had launched a first of its kind gold coin in the nation with the Ashoka Chakra minted on one side and Mahatma Gandhi on the other. It is currently sold in various denominations like 5 grams, 10 grams etc.
Gold coins can be bought through post office in the similar procedure as that of purchasing from banks. Those looking to make investments on gold of higher value- Rs. 50,000 or more, it is mandatory to carry KYC documents and PAN card. Whereas, a purchase lesser than that does not require KYC documents.
Gold investment is a good long term investment. It is beneficial in case of personal emergencies, market disturbances, economic inflations etc. because of its high liquidity and store value. But, every investment has its own pros and cons and it is advisable to go through each feature of gold investment before deciding to go ahead. The multiple options available in the form of gold and the way to procure it have made procurement procedures extensively easy and convenient.
Gold coins are considered a better option because of its compact size, easy accessibility, limited minimum investment, high liquidity and other similar factors. It is in constant demand too because of its significance in certain festivals and weddings. The ease of selling is another notable benefit of procuring gold coins.
Gold coins are available through post office too. It takes the game of accessibility to another level by putting in use the post office’s extensive networking across the nation. The customer base is already set and people of different backgrounds can access it easily, including some people from remote places. An assured quality of gold coin with tamper-proof packaging makes the scheme reliable.
Moreover, it functions under the government. That said, it is still advisable to enquire, compare and choose the right medium to invest in gold.
What is 1 gram gold rate Indian post office?
The price of 1 gram of gold of 24k purity as of 19th September 2019 is Rs. 3,750
What is 10 grams gold rate Indian post office?
The price of 10 grams of gold of 24k purity as of 19th September 2019 is Rs. 37,500
What is 500 gram gold rate Indian post office?
The price of gold of 24k purity weighing 500grams is Rs. 17,70,310
What is 1 Kg gold rate Indian post office?
Price of gold weighing 1kg of 24k purity is Rs. 35,40,620