Why Indian Prefer To Buy Silver Coins And Gold Coins From Jewellers And Not Banks?

By Author: sammy Cook
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Today, even though banks and post offices sell gold coins and silver coins, most Indians will still buy 24 carat gold coins and buy silver coins India from their trusted family jeweller. The main reason for this is that while the coins sold by both banks and post offices are genuine and come with certificates, they do charge a small premium amount of the coins. On the other hand, jewellers who manufacture the coins will sell you coins at a more affordable rate, which is the primary reason that Indians will trust only their family jeweller. An important point to note here is that if you are looking for silver and gold coin to buy, you must ensure that the jeweller will give you a certificate with it, not just the bill.

One reason that makes more Indians buy gold coins from jewellers is that the same jeweller will buy the coin back. However, if you want to sell the coin to some other jeweller in case you have moved town, you need to have the necessary certificate because a bill alone is no warranty that the coin is genuine. Every jeweller will have his own standards and while a jeweller will buy back the same gold coin ...
... he sold you without any questions, he will be reluctant to buy a coin not purchased from him. This is another reason that even though banks and post offices will give you genuine gold coins and silver coins, people still prefer to buy gold coins from a jeweller who will buy it back without checking for authenticity.

For example, in 2012 most banks and even the Indian Post Office highly advertised their sale for gold coins during Diwali season. Even then, more Indians preferred to continue buying their annual affair of best gold coin to buy and best silver coins from trusted jewellers and didn’t seem too keen in the discounts offered by the banks and post offices. The reason was simple – while the current price of gold that week was Rs. 31,250 for every 10 gram, banks were selling their coins at Rs. 36,000 for 10grams, which was higher than what local jewellers were charging. Also, with jewellers offering great discount schemes and EMI options around Diwali, people find it much easier to buy gold coins and even buy silver coins from them.

However, customers got a greater advantage that just rates. When people chose to buy 24 carat gold coins and even buy silver coins from their local jeweller, they got the promise of better resale value for every coin retailed because jewellers were facing tough competition from banks. And though bankers were surprised because they were offering 24 carat gold as opposed to the 18k and 22k that most jewellers sell with complete certification valid internationally, people still chose local jewellers. Another reason for this could also be that many people prefer a variety, because in India silver coins are also used for diwali gifting by businessmen. So many people chose to buy silver coins online and have them delivered directly to the receiver and remove the need to select a lower value coin in person and then make a home visit to deliver it in person.