Thursday, December 23, 2010

Clarifications on Gold rates

Checked rates today at Tanishq and Shubh Jewellers.

The rate quoted on the Mint masthead is Rs. 2043.50 per gram. Tanishq's base rate is 2120. They charge about 5% margin (it varies as per a sliding scale - it's 5% for a 10 gram coin) plus 1% sales tax. The actual rate for a 10 gram biscuit is 2247. They will buy back Tanishq biscuits at the base rate (2120) if you buy ornaments from them with the proceeds. In case it is a cash buyback they will deduct 5% and give you 2014. So the net buy/sell margin actually works out to about 11% including the tax.

Shubh Jewellers quoted 2088 as their base rate, plus 1% tax. Their buyback for Shubh biscuits is currently is at 51 rupees less, that works out to 2037. 

As expected, the buyback is at a rate slightly less than the day's benchmark rate. The rate at which they sell to us differs widely.

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