I wanted to buy some silver coins. 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 everyday 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 good investment option.
When you are investing, be it mutual fund, stock or silver coin, you need to be frugal about fee.Anyway, like 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 jewellers purchased the silver long back for cheaper price and they are making a hefty profit. So, I decided to ditch Amazon and visit local jewellers 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. 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 jeweller asked for 700rs. It has 100% silver and it weighs 11.64gm. I understand there is no purity certificate, but neither does the online options.
If you want to invest in silver, 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.