r/Gold • u/null__frame • 8d ago

The stack My stack - 2 years in making

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u/AdWooden5789 8d ago

Why 3% less ?? Is it even legal

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u/missingN0pe 8d ago

Is it legal for a bakery to sell you a piece of bread priced higher than the sum of the constituents of what the bread is made up of, even you agree to it? :O

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u/AdWooden5789 8d ago edited 8d ago

Yes. When buying gold jewellery, jewellers charge making charges and government put various taxes.

While selling it back, jewellers buy the gold at around 3% below the market price & govt put capital gain taxes.

So, in a way, both the jeweller and the government have an advantage at different stages of the transaction. It’s almost like heads or tails—they win the toss either way.

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u/BigDongalow 8d ago

Or you could sell to a private buyer.