Selling Physical Gold Jewelry and Converting to eGold?

POSTED BY Ram ON August 26, 2012 7:07 pm COMMENTS (5)

My wife and I received gold jewelry and also some gold coins as gifts when we got married several years ago. Now looking at the gold prices, we are considering selling some of it.

 

1. Can jewelry be converted to eGold? We want to convert to eGold and sell because when you try to sell to jewelers they charge some percentage (I think 10%) and that would be our loss. Better to conver to eGold and sell, is it not?

 

2. Can the gold coins be converted to eGold? If the answer for jewelry was no, then maybe we can convert/exchange the jewelry for gold coins/biscuits/etc. and then convert to eGold?

 

3. If we finally convert to eGold and sell online, will the amount we receive from the sale be taxable? Also this was all received as a gift during marriage which (I think) is tax free, is it not?

 

4. If none of the above eGold options are beneficial according to you, then please suggest the best method to sell with maximum benefit.

 

Thanks,

Ram.

5 replies on this article “Selling Physical Gold Jewelry and Converting to eGold?”

  1. Biswa Singh says:

    Yes Ashal is correct. There is no such provision to convert gold into eGold. But by selling it now and again investing it in eGold you have to pay 0.4% as transaction charge and around rs 250 as annual maintainence charge.

    Ashal,

    Isn’t it good idea to keep all these gold in locker and start a new investment in eGold?

    1. Dear Biswa, that’s the call to be made by dear Ram not me. For my personal money I’m neither investing in physical gold nor in e-gold.

      Thanks

      Ashal

  2. Dear Ram, to convert physical gold from jewelry to pure gold (coin or biscuits), you w’d have to sell this jewelry as of now & to purchase the coins or biscuits. To convert into e-gold. Again you can use the sell amount to purchase e-gold or Gold ETFs.

    At the time of selling this old jewelry, the tax liability ‘ll be there.

    Thanks

    Ashal

    1. Ram says:

      Dear Ashal,

      Thanks for your reply. That means there is no way to convert the jewelry or even coins to eGold by directly providing to the DP for eGold?

      Thanks,
      Ram.

      1. Dear Ram, as far as I know, there is no such facility to convert physical gold into e-Gold.

        Thanks

        Ashal

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