Time to bag pure gold

It's a low risk product and one of the best means of investment; an alternative instrument of saving, it has fair degree of liquidity; a valuable gift for any special occasion, it's an out-of-the-ordinary incentive for employees, too. Above all, it's the only entity women keep close to their hearts...

There you're! The dazzles of gold have been a part of our life for ages now, in a way or the other. Irrespective of it's price shooting up and reaching the skies every passing day. That's the following the glittery yellow metal has got among the populace.

The glittery entity, undoubtedly, helps us secure our future. However, the coin has the other side too - the increasing concern over its purity. And that's where banks come into the picture, our most trusted advisors in investments and savings.

Most of the banks (nationalized and private) these days offer sale of 24 karat 999.9 pure gold coins and ingots with 'Assay' certification from Switzerland and London, in the denominations of 2, 4, 5, 8, 10, 20, 50 and 100 g (in round shape and rectangular bars). And, these have caught the fancy of the common man and investors alike. After all, quality matters!

"Minted at the refineries like PAMP and Castel San Pietro, these coins/ingots have the logo of the respective banks and are available in tamper-proof see-through certicard packs in order to avoid any damage or theft during transit," informs WP Rama Rao, Chief Manager, Andhra Bank, Lakdi-ka-pul.

Competitively charged on the daily prices of international bullion market price of gold and the US dollar, the banks also take into account the VAT, Sales Tax, Stamp Duty and Octroi in deciding upon the value of these gold coins/ingots. "No documents are required to purchase coins amounting to Rs 20,000-50,000; but identity proof is needed for those costing Rs 50,000 and above (non-customers). The price limit and process of payment, nevertheless, differ from each bank," Rama Rao adds.

Apart from nationalized ones like Andhra Bank, SBI, UBI, Bank of Baroda, Syndicate Bank, Corporation Bank and Indian Bank, private players including ICICI, HDFC, IndusInd and Axis are offering sales of gold coins/ingots under various schemes.

"Nowadays, getting unadulterated commodities has become pretty much impossible. Gold is no exception and we can't rely up on jewelers and showrooms all the time. However, banks are really serving the purpose through selling 24 K gold coins and ingots. It really made things easier for me - with regard to investments or getting loans," quotes one Chanduri Kamala, a Telecom employee and customer of a nationalized bank.

Not just the customers but also the outsiders can buy them, with discounts and special offers on bulk purchases. "Some corporates and individuals with a view to gift for occasions or offer as an incentives to staff, usually make bulk purchases, the orders for which need to be placed in advance," informs M Ravindra Babu, Manager, Bank of Baroda, Khairatabad. In this case, one can get logos, initials, emblems or symbols of Gods embossed on the coins/ingots bought at certain banks.

Also, selected banks (like Andhra Bank and Syndicate) offer loans on these coins/ingots like that on jewelry. The per-gram price of gold varies from each bank though. However, the banks don't repurchase the coins. They can be sold to any jeweler.

Be it SyndSona of Syndicate Bank and Swanra Mudra Scheme of Indian Bank or Mudra Gold bars of HDFC and Suvarna Mudra of IndusInd or Mohur Gold Coins/Ingots by Axis Bank... Now that the banks are all batting for 999.9 per cent pure gold, how about ensuring a handsome return over a period of time?