If you are living in country with pegged currency, like Hong Kong, the gain willalmost same as USD. Or may be 0.5% t 1% smaller up to the movement allowedwithin the bandwidth for currency mechanism. (In Hong Kong, they allow 0.5% to1% maximum)3.
Buying Physical Gold in USA: There are many counters, but the best isAPMEXandMONEX.
They have no hidden commission, the mark up is smaller and delivery is fast. APMEXdelivers only within United States. They do not store it.MONEXdoes.4.
Buying Physical Gold in Hong Kong: Bank of China, Hong Kong sells gold (0.9999) withbank’s marking in 1 to 5 tael bars (1 Tael = 37.5 gms appx). Mark up is about 1%. They alsosell Paper Gold (called gold by pass book). One can also buy Gold from reputed gold dealersin tael form from say such as Wing On paying just 1% to 2% mark up. The licensed goldshops are generally safe in Hong Kong. However, be careful of the shops who sell imitationjewellery along with gold. Check out their licenses. Gold usually bear 0.9999 stampHong Kong is also unique in selling 24K gold jewellary which is cheaper than centers likeIndia. The making charge is fixed (not per gram as in India) per article. I once paid only HK$150 for gold chain for myself weighing 50 grams or just HK$ 3 or Rs 18 per gram comparedto what you pay @ Rs 100 to Rs 120 per gram in India.Yes, in Hong Kong, they do quote ornamental gold prices separately which is usually higherby 3% to 4%. They may also charge 2% commission which, if one negotiates, will not becharged.I once tried to sell HK made 24K ornament in India. The Ghatkopar dealer paid me fullvalue instantly in cash. The gold dealer also need 24K gold from reliable source.5.
Buying Physical Gold in UK/Europe: throughGoldMoney. They buy for you and also deliverin many countries in Europe and others. Check out their list. Mark up is 1.25% to 2% at themost. Further, there is no charge when selling; so the cost of buying and selling is halved. If required, they provide storage facility at London and Europe at little cost. The gold isphysically held on your behalf at the storage centers.a.
Buying Gold in India: There are two issues here. Buying gold bars and goldornaments:i.
Private and Nationalized Banks: They make only one way market, and chargealmost 10% higher than the international market. This is acceptable, becausethe price also include 2% import duty and 2% sales tax. This is 0.999 finegold, not 0.9999. Not much difference (price difference just 1%)ii.
Buying fromMMTC: One can buy from their own or franchised retail shops.They sell medallions with 0.999 fineness. (see the picture on the title). Theyalso make only one way market. The mark up is nearly 11%. They will not buy back from you. You end up losing 8% in real terms, but when your gaincould be 150% (as I expect, but that is only opinion), who cares for 8%?iii.
Buying from large Gold/bullion dealers: One may buy gold bars or lagdisfrom gold dealers at cheaper than bank prices. However, do take the invoiceeven if one has to pay 2% sales tax. The reason is Tax department usuallyequate the raw gold investment as evidence of “black money” though they donot bother about investment up to Rs 5 to 10 Lakhs now. If it is “ornamental”gold, it is known as “Stree dhan” or “Woman’s Wealth” which is usuallyuntouchable.