Money Saving Ideas

Read It Before Buying Silver Coins Online

Read It Before Buying Silver Coins Online

I wanted to buy Silver Coins Online. Like many of you, I gift or donate silver coins. And nowadays we are buying groceries from Bigbasket and Amazon, so the first place I went was Amazon to check the price for silver coins. Since we usually know the price of silver ( which changes every day or more frequently) we can estimate the price of a 10gm silver coin. Usually, when we buy coins or any other stuff such as an idol or a plate we pay a ton as making charge. So, I do not consider silver coins as a good investment option.

When you are investing, be it mutual fund, stock, or silver coin, you need to be frugal about fees. Anyway, as I mentioned, I was not looking for the coins to invest in silver. So I found out all 10 gm coins on amazon were around 1000 INR or more. And right now the silver costs 70000 a Kilo. We can understand the jewelers purchased the silver long back for a cheaper price and they are making a hefty profit. So, I decided to ditch Amazon and visit a local jewelers shop. Yes, instead of Silver Coins Online, I chose mom and pop shop.

Predictably the price was significantly lower. And they had 3 types of coins, 1 – coins weighing more than 10gm and with 100% silver (most expensive)

2. Silver Coins weighing 10gm and 100% silver, as the weight is less, these are cheaper

3. silver alloy coins, cheapest by price.

I purchased the coin for 680rs. The jeweler asked for 700rs. It has 100% silver and it weighs 11.64gm. I understand there is no purity certificate, but neither do the online options. Hence I did not opt for Silver Coins Online. Moreover, this was not really for selling later.

Silver Coins Online

If you want to invest in Silver Coins Online, I will strongly suggest against silver coins, you can contact your local silver dealers and ask them if they sell silver balls, those do not come in any particular shape and you do not really pay anything other than the price at the time of purchase plus taxes.

But I have done this previously, purchased silver coins online, and then sold online.

Physical Gold or Gold Stock Which Gives Best Returns?

Physical gold is not a good option to invest in. Few reasons are making charges, GST, and then storing fees, all these additional expenses keep on adding with investment cost. When you go to sell, there will be a tax too, be it capital gain or short-term gain tax.

The gold stock has no GST, no making charges, and holding cost is also baked in. You pay minimal taxes + brokerage ( if applicable) and then an annual demat charge. If you decide to sell the long or capital gain tax will apply. In point, the overall holding and owning cost is much less when it is not physical, so the return is high.

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About the author

Hi,
I am Abhiroop. I started working in IT services industry in the year 2007. I have worked in 3 continents. Currently, I live and work in the USA. While blogging was one of my hobbies that I picked up in college, I fell in love with the stock market in the year 2014. I purchased my first stock in 2008, and I sold them all after 2009. I did not know the power of compounding. Which was a HUGE MISTAKE. I intended to help everyone understand why we need to invest in stocks, hence I started this blog.

You can visit my LinkedIn page here https://www.linkedin.com/in/abhiroop85/

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