Why don the banks buy back the gold coins they sell?
One should never buy physical gold from bank or ornaments for INVESTMENT purpose. You can buy it if you like the pleasure of owning gold. To invest in gold always use ETF. Here are the important reasons 1. Banks sell gold coins at a premium of 10-20 percent over the gold rate at that time. This premium is taken for giving the guaranty of purity. But they will not buy it back, because they do not want to pay you that 10-20 percent premium. So you are forced to sell it elsewhere and lose the premium amount. So if you buy gold worth 11500 from a bank. The next day if you sell it to some other source you will get only 10000 rupees. 2. In case of Gold ETF, if you hold it for more than 1 year it is considered as a long term capital. Any profit you get from selling it will be taxed at 20 percent. But in case of gold bar or coin, you need to hold it for 3 years for it to be considered as a long term asset. If you sell it before that time then you have to pay a income tax at 30 percent on the p
