Gold is no cheaper in India: carat tricks explained
Gold prices are set globally, not by currency conversion. Caratage and each shop's premium explain why travelling to buy it is no bargain.
English · Original discussion in Spanish · Published
Gold is not cheaper in India: the carat trap
Gold is no cheaper in India or Africa. It costs the same in Madrid as in Kuala Lumpur, because its price is set on an international market, not by each country's currency conversion. The belief that travelling to buy it is a bargain falls apart as soon as you look at the caratage: in Turkey, for example, lower-carat gold is sold at the same apparent price, turning the bargain into a hidden markup.
Gold is priced globally, like oil. Converting euros into rupees or dinars does not make the metal cheaper: it only changes the number of banknotes needed to pay for the same ounce. Any real price difference does not come from the country, but from the premium each shop applies and the quality of the product. And that is where the problem starts.
Caratage, the fine print nobody reads. In countries like Turkey it is common to find 14 or 18 carat pieces advertised as gold, when in Spain the standard is 18 or 24. The price per gram seems lower, but so does the actual precious metal content. The result is that you pay more for less gold, and the alucinación is not worth it.
Belgium and Germany, the exceptions people mention. Some claim Belgium offers better prices on common gold coins, and that Germany is the place to buy silver. France, on the other hand, is ruled out: prices for common coins are higher than in Spain. These are collectors' impressions, not verified data, and should be taken with caution.
The 3% margin and the 10% trap. A 3% spread between buying here and selling there can be legitimate, but it requires ensuring quality and a real possibility of selling. With investments of 100 or 1,000 euros, the effort and risk are not worth it. If someone promises 10% or more, the warning is clear: it is a trap. Gold does not offer miraculous returns.
Gold-buying shops under suspicion. The gold buyback business often runs on abusive margins. The repeated advice is to negotiate and distrust anyone promising prices well above market. The option of travelling to buy cheaper gets complicated when the real business lies in resale and the bid-ask spread.
The prediction, with reservations: as long as gold remains an internationally traded safe-haven asset, trips to buy it cheaper will remain a profitable myth only for whoever sells the plane ticket.
Gold is no cheaper in India or Africa. It costs the same in Madrid as in Kuala Lumpur, because its price is set on an international market, not by each country's currency conversion. The belief that travelling to buy it is a bargain falls apart as soon as you look at the caratage: in Turkey, for example, lower-carat gold is sold at the same apparent price, turning the bargain into a hidden markup.
Gold is priced globally, like oil. Converting euros into rupees or dinars does not make the metal cheaper: it only changes the number of banknotes needed to pay for the same ounce. Any real price difference does not come from the country, but from the premium each shop applies and the quality of the product. And that is where the problem starts.
Caratage, the fine print nobody reads. In countries like Turkey it is common to find 14 or 18 carat pieces advertised as gold, when in Spain the standard is 18 or 24. The price per gram seems lower, but so does the actual precious metal content. The result is that you pay more for less gold, and the alucinación is not worth it.
Belgium and Germany, the exceptions people mention. Some claim Belgium offers better prices on common gold coins, and that Germany is the place to buy silver. France, on the other hand, is ruled out: prices for common coins are higher than in Spain. These are collectors' impressions, not verified data, and should be taken with caution.
The 3% margin and the 10% trap. A 3% spread between buying here and selling there can be legitimate, but it requires ensuring quality and a real possibility of selling. With investments of 100 or 1,000 euros, the effort and risk are not worth it. If someone promises 10% or more, the warning is clear: it is a trap. Gold does not offer miraculous returns.
Gold-buying shops under suspicion. The gold buyback business often runs on abusive margins. The repeated advice is to negotiate and distrust anyone promising prices well above market. The option of travelling to buy cheaper gets complicated when the real business lies in resale and the bid-ask spread.
The prediction, with reservations: as long as gold remains an internationally traded safe-haven asset, trips to buy it cheaper will remain a profitable myth only for whoever sells the plane ticket.
Also available in: Deutsch
Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (6 replies).
More summaries
-
Buying gold and silver in Germany: up to 25% cheaper
Silver Philharmonics drop from €25 in Spain to €18.90 in Germany, according to a forum user. The saving depends on VAT, delivery times and the tax threshold of…
-
We Buy Gold: the business of buying low and selling high
The We Buy Gold business isn't about buying gold, but about exploiting the gap between what sellers are paid and the market price. Here's how it works.
-
Gold: From 32/gram bar to COMEX paper collapse
Physical gold registered on COMEX fell to 73,949 ounces against 542 open contracts, while bullion coins appreciated 15% and large...
-
Hotel101 sells rooms in Valdebebas for €208,800
Hotel101 sells rooms in Valdebebas for €208,800 plus VAT with monthly income distribution and doubts about what happens if the operator goes bankrupt
-
Marathon Fusion says it turned mercury into gold, and the market shrugs
Marathon Fusion claims it transmuted mercury into stable gold, ten times the CERN record. The energy cost and scale keep the announcement a curiosity.
-
Gold now outweighs bonds in global reserves
Gold now accounts for 27% of global reserves, ahead of the 22% held in Treasury bonds. The ten-year yield hovers around 5% and Brent is approaching $120.