If you are planning to buy a gold coin on Diwali, it is advisable to try outlets of MMTC or your neighbourhood jeweller branded retail firms rather than the organised banks. You will pay 9.5-12.5% less. You can save Rs 1,500-2,000 on a 24-carat 8-gram gold coin. The same coin is priced higher in a bank is because of extra costs involved like making charges, import duty, customs duty, packing cost, assay certification and transportation.A coin from a bank has a premium attached to it. While banks offer certification of purity at a significant premium, financial experts say that it makes sense to buy it from a trusted retailer who can offer the same purity.
The premium is lost as soon as the purchase is done and it gives only the value of gold at the time of sale. Thus, gold price will have to move at least to those levels for the customers to break even.
A senior official at MMTC said, "We do not charge high premium from the customers and our price is the right price. This is a reason for the good demand we have seen this Diwali even at high gold prices." According to Gold council, while banks are charging a premium for Swiss coin (that banks sell , it is up to consumers whether they want to buy a Swiss coin or a coin made in India (domestic coin). Coin-making charges and assay certification costs in Switzerland are higher than in India, which takes the price of an imported gold coin higher.