Options for Buying Gold Bars

Gold bars require somewhat deeper pockets but they are pretty good value; so if you can afford to pay the entire amount at one go, typically, your local jeweller will offer the best deal.A local jeweller would have sold a 50-gram gold biscuit on January 2011 at Rs 1,03,150.Even here, take the trouble to walk the streets and ask around about prices.They vary by brand and from dealer to dealer. Negotiate.

The next best place to buy these bars is from NBFCs like Muthoot Finance and Mannapuram Finance.In January 2011, a 50-gram gold biscuit from Muthoot Finance  used to cost Rs 1,12,842, inclusive of taxes (VAT and service tax),if you bought it outright.These NBFCs also offer you the chance to buy old bars and coins on EMIs.They charge an interest calculated annually.In this case,after making a down payment of Rs 11,750 (10 per cent of the cost), the remaining could be paid via EMIs of Rs 9,356 over a 12-month period.The gold would be handed over to you after you complete the entire payment.The total amount paid through EMIs comes to Rs 1,12,272.Add to it the initial down payment of Rs 11,750, the total cost would come to Rs 1,24,022.  Read more of this post

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