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Planning to Buy Gold Coins from Banks? Just Compare Before you Buy

Are you planning to buy Gold coins from Banks, Post Offices etc.? If yes, you need to do some home work before you buy. In this connection please note that:

*     The Gold Coins mainly comes in the denominations of 0.5, 1 gm, 2gm, 2.5 gm, 4 gm, 5gm, 8gm, 10gm, 20 gm, 50 gms and 100 gms. Only few banks sell Gold Coins of all denominations. So it is better to check the availability of  particular denomination of coin with the respective bank.

*     Gold coins are available in 24 Carrot pure gold of 999.9/ 99.99 purity / fineness in a tamper proof certicard packs with assay certification, signifying the highest level of purity as per international standards. While most of the banks are importing gold coins manufactured in the refineries at Switzerland, others are selling indigenously manufactured coins at par with International standards. Before buying coins please ensure whether the coins carry the above purity/ fineness and also ensure to verify the same from the invoice being issued by the banks/Post Office.

*     The prices quoted by various banks are exclusive of VAT & other local taxes. The VAT is normally 1% throughout the country. However, some states are charging the VAT & other taxes at 1.1 % of the sale amount.

*     Banks have not been permitted by Reserve Bank of India to buy back the gold coins.

*     RBI guidelines restricts banks in selling gold coins in cash if the amount is Rs50,000/- & above. Hence you cannot purchase Gold coins worth Rs. 50,000/- & above against cash but  it can be by way of  debit to your account or against tender of cheque(s) or other instruments or funds transfer by  other means viz. RTGS/NEFT etc. Some banks also offer the facility of payment through swiping of Debit / Credit Card.

*     Banks are quoting rates of gold coins on daily basis approx. at 10.30 – 11.00 AM except on Sundays or notified holidays. Since the price of gold could vary in international market mid day, banks can change the rates during the day also. Hence the rate that would apply would be the one at the time of your actual purchase.

*     A few banks are offering higher discounts and offers to allure the investors. Please don’t be misguided only by looking at the discount and freebees or home delivery service offered by the respective bank. Please ensure to check the final rates of the Gold Coins (after deduction of the discount from the Base price) before taking any decision.

*     Banks are also offering more discounts on bulk purchases (normally 500 gms or more) on case to case basis depending upon the quantity to be purchased and existing connections with the bank.

*     In case of bulk purchase of Gold coins many banks are offerring Customised design / Embossing as per customer’s requirements .

*     you can also avail gold loan against pledge of these gold coins with the respective bank.

*     How to purchase the gold coins

  • Visit the nearest branch of the respective bank/Post office
  • Fill in the simple application form for purchase of Gold Coin.
  • Mention the weight & quantity of the gold coins required in numbers & words & the mode of payment.
  • Tender Cash or Cheque or Debit Authority from the account alongwith the application form.
  • Submit a copy of PAN if amount of purchase is Rs.50,000/- or more.
  • Branch will accept and process your requirement and deliver the coin alongwith the copy of original invoice to you.
  • It is not necessary to  open an account or have an existing relationship with the bank for purchase of gold coin.

*     All branches of the banks are not authorized to sell gold coins. So before buying please ensure whether particular branch of the bank is authorized to sell the gold coins or not.

*     While most of the banks are displaying Daily Gold Coin rates on their websites, a few don’t. Before buying donot forget to compare the rates of various banks. For your ready reference we give below the details of sizes of Gold Coins available with the respective bank, its purity/ fineness and link of the page of Banks’ website where Today’s Gold Coin Rates / FAQ or other information on Gold coins is available.  By clicking on the link you can know the rates/ information regarding Gold Coins of the respective bank. For your convinience and ready reference we have also started updating a “Comparison of Today’s Gold Coin rates of Banks “  on daily basis.

सोने के सिक्कों के आज के दाम (रुपयों में)/Today’s Gold Coin Rates
Comparison of Today’s Gold Coin rates of Banks
Sr. No. Name of the Bank Purity/ Fineness Coin Size (in Gms) List of branches selling Gold Coins Gold Coin Application Form 
1 Allahabad Bank 999.9 2, 4, 5, 8, 10, 20 Click here  
2 Andhra Bank 999.9 2, 4, 5, 8, 10, 20,50 Click here Download
3 Bank of Baroda 999.9 2, 4, 5, 8, 10, 20, 50 Click here  
4 Bank of India 999.9 4, 5, 8, 10, 20, 50 Click here  
5 Bank of Maharashtra 999.9 2, 5, 8, 10, 20, 50 Click here  
6 Canara Bank 999.9 5, 8, 10 Click here  
7 Central Bank of India 999.9 2, 4, 5, 10    
8 Corporation Bank 999.9 2, 4, 5, 8, 20, 50, 100 Click here  
9 Indian Bank 999.9 2, 4, 5, 8, 10, 20, 50    
10 Indian Overseas Bank 999.9 2, 4, 8, 10, 20, 50, 100 Click here  
11 Oriental Bank of Commerce 999.9 5, 8, 10 Click here  
12 Punjab National Bank 99.99 2, 5, 8,10, 20    
13 Punjab & Sind Bank 999.9 5, 8, 10 Click here  
14 SBI/ SBM/ SBT/ SBOP 999.9 2, 4, 5, 8, 10, 20, 50, 100 Click here- SBI
Click here- SBP
Download
15 State Bank of Hyderabad 999.9 2, 4, 8, 10, 20 Click here Download
16 Syndicate Bank 999.9 4, 8, 10, 20, 50    
17 Union Bank of India 9999 2, 5, 8, 10, 20, 50 Click here  
18 AXIS Bank 99.99 2, 5, 8, 10, 20, 50 Click here Apply online
19 Dhanlaxmi Bank 99.99 5, 10   Apply online
20 Federal Bank 999.9 1, 2, 5, 8, 20, 50, 100 Click here  
21 HDFC Bank 99.99 2.5, 5, 10, 20, 50, 100 Click here Download
22 ICICI Bank 99.99 .5, 1, 2.5, 5, 8, 10, 20, 50, 100 Click here Apply online
23 IndusInd Bank 99.99 5, 10, 50 Click here  
24 Karur Vysya Bank 99.99 4, 8, 10, 20, 50, 100 Click here Download
25 Kotak Mahindra 99.99 5, 8, 20, 50, 100 Click here  
26 Post Office 99.99 .5, 1, 5, 8, Click here  
27 South Indian Bank 99.99 4, 8, 20, 50, 100 Click here  
  The prices quoted by various banks are exclusive of VAT and other local taxes except that of HDFC Bank. Corporation Bank sells Gold Coins of 2 gms to 50 gms with 999,9 purity and 100 gms bar with 999,0 purity
  Though you need to contact nearest branch of the respective bank for any offers and discounts, yet a few banks have published the following discounts on their websites.
Allahabad Please contact nearest branch of the bank for discount and other offers.
Andhra Please contact nearest branch of the bank for discount and other offers.
BOB 1 % discount available to existing customers/Bulk purchasers. Please contact nearest branch of the bank for other offers.
BOI Please contact nearest branch of the bank for discount and other offers.
BOM Please contact nearest branch of the bank for discount and other offers.
Canara Please contact nearest branch of the bank for rates, discount and other offers.
CBI Please contact nearest branch of the bank for discount and other offers.
Coporation Please contact nearest branch of the bank for discount and other offers.
IndianBk Please contact nearest branch of the bank for rates, discount and other offers.
IOB Please contact nearest branch of the bank for discount and other offers.
OBC The above rates are inclusive of 3% discount which is available on purchase of upto 9 gold coins, 1% more i.e. 4% discount is available on purchase of 10 & above Gold coins of any denominations by a single purchaser.
PNB The above rates are inclusive of 2% discount. Please contact nearest branch of the bank for other offers.
P&SB 5% discount on purchase of 1-49 Gold Coins and 6% discount on purchase of 50 Gold Coins & above. 1% additional discount to staff. Please contact nearest branch of the bank for other offers.
SBI/SBM/ SBT/SBP Please contact nearest branch of the bank for discount and other offers.
SBH Please contact nearest branch of the bank for discount and other offers.
Syndicate Please contact nearest branch of the bank for rates, discount and other offers.
UnionBk Please contact nearest branch of the bank for and discount other offers.
Axis Spl. discount to Priority Banking customers. Please contact nearest branch of the bank for rates, discount and other offers.
Dhanlaxmi Please contact nearest branch of the bank for rates, discount and other offers.
Federal Please contact nearest branch of the bank for other offers. Please contact nearest branch of the bank for discount and other offers.
HDFC Please contact nearest branch of the bank for discount and other offers.
ICICI 9% discount on purchase of gold coins upto 5gms, 8% on 8 gms and 10 gms, 7% on 10gm and 20 gms and 10% on 100 gm gold coins. Please contact nearest branch of the bank for other offers.
IndusInd Please contact nearest branch of the bank for discount and other offers.
Karur Vysya Please contact nearest branch of the bank for Rates and other offers.
Kotak Please contact nearest branch of the bank for discount and other offers.
PostOffice Please contact nearest branch of the bank for rates, discount and other offers.
SouthIndBk Please contact nearest branch of the bank for rates, discount and other offers.

Disclaimer : While every care & precaution has been taken in compiling the above information error free from the websites of the Banks, readers are advised to note that www.thebankingbible.com do not own any responsibility whatsoever for any mistakes that might have crept in compiling the above information. As Gold Coin rates are quoted on day to day basis, readers are requested to check the latest Gold coin  rates with respective banks before investing.

Wishing You Happy Investing

Please also read : Comparison of Today’s Gold Coin Rate of Banks

Filed in: Comparison, Gold Banking Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

50 Responses to "Planning to Buy Gold Coins from Banks? Just Compare Before you Buy"

  1. Bill says:

    None of the Banks listed is located in the US. Is this because US Banks are prohibited from selling/buying these types of coins? If not, do you know the name of any US Bank that offeres this service?

    Thanks

  2. admin says:

    Dear Bill,

    Thanx for the interest shown in the website. We are currently working on providing such information for banks situated in India only. We may plan for compiling the same for US Banks in future. Kindly bear with us till such time.
    Regards,
    Admin

  3. Gopinath says:

    True that there is a lot of difference in the rates offered by banks. By analyzing we can save a lot of money. For example today (Sep 6th 2011), 10 grams of gold at Andhra bank cost 30,321.00 but where as HDFC Bank sells at 34,001.00. The difference is close to 700 Rs.

    Edited by Admin during moderation.

  4. vivek says:

    which is the best bank providing consistent economic price of gold for best buy ???
    will u pls suggest????????

    • admin says:

      Dear Sir,
      Allmost all banks are selling gold coins with same fineness/purity and we are providing the comparison of “Today’s Gold coins rates of 15 banks” on daily basis at the link http://thebankingbible.com/comparison-of-todays-gold-coin-rates-of-banks-2208 to enable the users to make their own decisions. However, we have observed that gold coins of Andhra Bank, Corporation Bank, Indian Overseas Bank followed by State Bank of India are consistently cheaper than those of other banks. While only limited branches of Andhra Bank, Corporation Bank and Indian Overseas Bank are offering these facilities, SBI is providing this facility at more than 1200 branches in every nook and corner of the country having maximum denominations and availability of stock. So you are the better judge to decide. Regards, Admin

      • Anil Kishore says:

        Bank of India is selling the gold coins through its more than 3000 branches and I think this bank is having highest no. of outlets.The rate of 50 gm coins are very competitive and availabilty of coins is also one of the factor which makes the Bank as one among the highest selling Bank. They usually allow discounts on bulk sale. They are also allowing discounts time to time on various occasions.

        • admin says:

          Dear Mr.Kishore,
          You are right, the Bank of India is selling at more than 3000 branches across the country and we have verified the same from Banks’ website. The 50 gm gold coin is also competetive. Thanks for the information. Regards,
          Admin

  5. Anil Kishore says:

    One more addition ,on your very informatiove website, will be useful for the readers;

    RBI guidelines given in notification RBI/2011-12/135 DBOD.BP.BC. No. 26 / 21.01.001/2011-12 dated August 1, 2011 restricts selling of gold coins in cash if the amount is Rs50,000/- and above.

    Gold coins worth Rs. 50,000/- and above can not be sold against cash but will be only against debit to the customer’s account or against cheques or other instruments tendered by the customer.

  6. Rajesh says:

    Hello,
    Can you please list out the procedure to purchase gold coins from Post Office? There is some information regarding this at
    http://www.indiapost.gov.in/Operating_Procedure_for_Sale_of_Gold_Coins.pdf

    There they mention that coins are not sold over the counter and that DPM/ APM (Treasury)/ Treasurer is involved. So does it mean that the purchase is not instantaneous and there is a waiting period?
    Thanks!

    • admin says:

      Dear Mr. Rajesh,

      We have verified from the Concerned Authorities at the Post Office who have advised that the sale is intantaneous and there wont be any waiting time.Regards,
      Admin

      • Rajesh says:

        Thank you. I visited the post office in my neighborhood on Saturday and was able to make the purchase. It took around 45 minutes for the process. There were some issues with the computer systems which prevented them from entering the order and they took some time to go into the stock room to get the product. I think one could make the purchase in 10-15 minutes if there are no system problems.

  7. Guru says:

    The best comparison I have seen on this topic. The fact that you provide the actual bank website links makes it excellent

  8. Gurdev says:

    I have purchased few Gold coins in past now I intend to sell them, is there any bank/institution which buys gold coin at the full price.

  9. Ankit says:

    thanx for proving us with valuable suggestion with rate chart & discount available wid various banks today bought gold form indusind bank.due to my eagerness i want to no what their is a rate diff in various banks rate & is their any purity difference between the gold offered by various banks in easy language other then fineness percentage bcz mainly rate offered by private banks are much higher as compare to nationalized banks….

  10. admin says:

    Dear Ankit.
    Thnx for your compliments. There is no purity differeence in Gold coins sold by differentr banks except 100 gm coin of Corporation Bnak which is having slightly lower purity. The gold coin rates are determind by different banks on daily basis. These are determind on the basis of cost + interest component of the supplier + administrative cost + selling & distribution expenses + profit martgin.The cost also depends on the quantity being purchased by the banks and from which supplier. Private Banks generally keep higher profit margin in comaprison to public sector banks in order to offer higher discount to customers/staff and higher incentive to the staff.
    regards,
    Admin

  11. raj says:

    How about Gold Coin sale by Jeweler…they are also 999 purity gold coin and offered at quiet lesser price than the bank and also having buyback facility at -1% to -3% of prevailing rates…
    Feedback plz

    • admin says:

      Dear Raj,
      I personally donot advocate purchasing the gold coin from jewellers because of lack of trust in them as regards purity of the gold coins and its rate. However, if the rates are comaparable with the same purity, you can decide to purchadse from them. regards,

  12. Shobha says:

    Hi,

    Can you please provide the prevailing gold rate offered by canara bank as well?

    Thanks

    • admin says:

      Dear Shobha,
      Canara Bank donot publish gold coin rates on daily basis on their website. It is not feasible to visit the bank/branch on daily basis and get the rates. regards,
      Admin

  13. sabi says:

    hi,
    i am new to this field and can u tell me the advantages of buying gold coins over ornaments and how much we can save while selling the same,pls get me a comparison..

  14. Anupam says:

    Why there are so much differences in price of gold for different banks though the purity is same??What is the base price they are taking??Are this discounts given by banks up to date??

    • admin says:

      Dear Anupam,
      Please refer to our reply dated 13-04-2012 in reply to Mr. Ankit wherein we have explained about the cost difference of gold coins between various banks.
      The Base price is daily Londan AM rate, which is Gold US$ rate. It is further linked with RBI reference rate of US$ and Rupee to arrive at Gold/Rupee rate.
      We have given the discounts which are presently published by banks on their websites. If some banks are offering any discount to customers/ bulk buyers/HNI customers without publishing the same on their websites, that you will have to check up from them before buying. Further for the convinience of the users we have also given the links of webpage of banks to enable them to check the current rates/offers themselves.reagrds,
      Admin

  15. kvssunil says:

    respected sir,
    i had purchased 20gms goldcoin from SBIi ,bathinda branch(punjab).they charge 1.1%vaton goldcoins as extracharge.the total price consists62,227.i found in ur website that banks dont take in cashform,for more than 50,000.but they take the fullamount in cash,despite of my request to pay 50,000 in cash&the remaining in chequeform .but they didnt accept this.inaddition to this,they didnt give me invoice form after purchasing gold coin.what should i do know?

    • admin says:

      Dear Sunil,
      The RBI guidelines restricts banks in selling gold coins in cash if the amount is Rs50,000/- & above. Hence you cannot purchase Gold coins worth Rs. 50,000/- & above against cash but it can be by way of debit to your account or against tender of cheque(s) or other instruments or funds transfer by other means viz. RTGS/NEFT etc. Some banks also offer the facility of payment through swiping of Debit / Credit Card. As the gold coins are priced on day to day basis the payment should reach to the bank on the same day.
      If the said bank is selling gold coins costing more than Rs.50,000/- against cash, it means the bank officials are not aware about these instructions.
      Further for one transaction they cannot accept the payment partly by cash or partly by cheque.
      As regards the invoice it is automatically generated by the system. All the authorised branches are issuing the same. Again either the bank official is not aware about it or he has not delivered the same to you intentionally. Please ask for the invoice again and if the official is not aware ask him to get the knowledge of the same from other authorised branches/nodal officers. regards,
      Admin

  16. kalai says:

    Hi,
    Is there any difference between 999.9 and 99.99 purity/Fineness since in the purity column in the above table for some of the banks it is showing 999.9 purity whereas for others it shows 99.99

    Thanks!!

    • admin says:

      Dear kalia,
      Kindly refer to our reply dated 02-05-2012 which is reproduced as under :

      For your query, kindly visit our undernoted post.
      http://thebankingbible.com/some-basics-of-gold-3259
      You will observe that while the gold coins of SBI and UBI are expressed in fineness (999.9 / 9999) the gold coin of ICICI Bank (99.99) is expressed in percentage. The gold coins of these banks are 24 carat containing the same purity. Only the way of expression is different.

      regards,
      Admin

  17. sail says:

    how to sell these gold coins. r what can we do after purchase.

  18. chandan says:

    i want to know that the price at the post office gold is compareable to sbi bank rates or much higher than the sbi bank gives . means that it is comparable to hdfc bank which are very high as compared to sbi bank. please help me out

  19. Krishna says:

    Dear Sir,

    I would like to know whehter RBI has imposed any guidelines on Banks about the Sale of Gold Coins
    If yes, would you let me know what are the conditions and from where can i get them

    Regards,
    Krishna

  20. Mohan Rao says:

    Hello,

    Kindly could you suggest me where i can sell the gold coins purchased from banks.

    I am from Bangalore. Would greatly appreciate if you could help me on this.

    Regards,
    Mohan.

  21. SIRI says:

    Hi,

    I have two queries to be made:

    1) May i know the difference between buying a gold coin from a bank and from any jewellery shop,
    2) Will it not be a loss to me if i buy a coin from bank at a higher price and sell it in a jewellery shop at a lower price than that when compared with buying and selling in the same jewellery shop.
    I mean is there any other you suggest.

    Thankyou,
    Siri.

    • admin says:

      Dear Siri,
      i) The purity of the gold at jewellery shop is debatable whereas from banks it is not. The jewellers may sell the coin without any bill and vat/sales tax may or may not be charged whereas the bank will issue the bill and vat/sales tax will be charged. The rate of coin depends upon its purity/fineness and bank mostly sell 999 purity coin whereas it may differ when it is purchased from jewellers.
      ii) Purchasing and selling at the same jewellery shop will be beneficial as compared to purchasing from banks and selling it to jewellers as the jeweller always discourage the people from buying the gold coin from banks and take advantage of the issue that the banks cannot buyback the gold coins.
      regards,
      Admin

  22. Can You Please tell me that, if I purchase a 10 gram gold coin from one government bank and I wish to sell in any private bank, then can I do it??

  23. Pooja says:

    Hi Admin,

    Can you please provide some info on buying gold only on paper that is not buying it in actual coins from the bank. I am very new in this and just heard of this kind of scheme from bank.

    Thanks,
    Awaiting your response.

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