Selling Gold
- Price: ₹8,000 per gram for 22K gold (market rate). For 10 grams, that’s ₹80,000.
- Net Cash: Jewelers typically deduct 5-15% for purity/design (₹4,000-₹12,000), so you’d get ₹68,000-₹76,000.
- Pros: Immediate cash, no repayment, profit if bought low (e.g., ₹40,000/10g in 2020 → ₹36,000-₹40,000 gain pre-tax).
- Cons: Gold is gone, potential capital gains tax (12.5% LTCG if held >24 months, no indexation).
Taking a Gold Loan
- Loan Amount: 75% LTV of ₹80,000 = ₹60,000.
- Interest Rate: Best rates at 9.05% p.a. (Bank of Maharashtra). For 1 year on ₹60,000, interest = ₹5,430. Total repayment = ₹65,430.
- Pros: Retain gold ownership, lower rates than personal loans (10-20% p.a.).
- Cons: Interest cost, risk of losing gold if you default.
Updated Comparison (10g of 22K Gold)
| Factor | Selling Gold | Gold Loan (9.05% p.a., 1 Year) |
|---|---|---|
| Cash Received | ₹68,000-₹76,000 | ₹60,000 |
| Total Cost | None (but lose gold) | ₹5,430 (interest) |
| Gold Ownership | Lost | Retained |
| Net Outcome | ₹68K-₹76K, no gold | ₹60K now, gold back after ₹65K |
Why the Difference?
If my earlier prices (₹5,665/g for 22K) seemed off, it’s because I extrapolated from late 2024 data (around ₹72,150/10g for 22K). By March 2025, prices have risen closer to ₹80,000/10g for 22K, aligning with forecasts of ₹73,000-₹83,000 for 2025 (e.g., Axis Securities). Daily fluctuations, regional variations (e.g., Mumbai vs. Delhi), and source differences (MCX futures vs. retail) can also skew perceptions.
Which is Best Now?
- Sell If: You’re okay losing the gold, need max cash now (₹68K-₹76K), and prices are high (₹80,000/10g is near the top of 2025 forecasts).
- Loan If: You want to keep the gold, need temporary funds (₹60,000), and can repay ₹65,430 in a year—interest is only ~7% of the sale value.
If I got the wrong focus (e.g., you meant gold loan rates), please clarify! For exact prices, check live sources like IBJA or MCX today, as my estimate is a reasoned average for March 2, 2025. What specifically didn’t seem correct?