GOLD Coins from ICICI Bank

I have been purchasing 24 Carat Gold Coins from ICICI Bank, M.G.Road Branch, Cochin from January 2005 till November 14th 2005 when I realized that the Bank was cheating us by charging Rs 150 to Rs 250 per GRAM more than the Market Price of the day published in Paper and Electronic Media. When checked, they said their gold was different. We found out that there is no difference and the price you will get when selling the ICICI Gold will only be the market buying price. Besides, ICICI Bank don’t buy back the gold sold by them which evidently proves their intention. They say there is no law preventing from selling at a Premium!? BEWARE, when purchasing GOLD from ICICI Bank. THEY are NO.1 cheaters!!

A disappointed Consumer who trusted the ICICI Bank, but forgot to VERIFY.

SALEEM S.A.,

31/20E Ambelipadam Road, Vytilla, Cochin 682019, India, Tel: 0484-2305142, 093886-32150, email: Email User

PS: Anyone is welcome to contact me for further details.

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I would like to share some IMPORTANT information apart from that already shared.

1. Premium or no-premium is not the question here. Gold is a commodity and everybody including banks have liberty to sell at their own rates. You should buy only after comparing 2-3 bank and leading jewellry shop rates.

2. Latest ICICI rates are available at : http://www.icicibank.com/Personal-Ba...gold-rate.html

3. The real problem is banks don't buy back gold, so whatever price you bought it from them you loose in two ways. I will explain why and give an example.

4. At todays rate if you bought 10 gms gold from ICICI it would cost Rs 31573.60 - 2525.89 (their discount) + 1161.90 (4%tax) = Rs 30209.61. I checked with PC Chandra Kolkata (biggest gold shop in kolkata) for price of 24 carat gold today, their price was Rs 29235 including tax. So you loose Rs 974 here for 10 gms.

5. Now, I asked PC Chandra what was the price for gold-exchange for 10 gm gold from ICICI, and to show them my onus I showed them 10 gm gold coin (which I foolishly bought from ICICI 2 years back and have been carrying in the same pouch alongwith a few copper and nickel coins from British India), they reviewed, saw the seal pack, the certificate (which the bank is so proud of 99.99% ASSAY) and gave me 2 rates - Rs 27541 for gold exchange from their shop or Rs 27291 for cash-back.

6. So if you buy today from ICICI and sell today at PC Chandra and try to get cash-back (most people would want liquidity and want cash back and not exchange for gold) this is what I loose. Rs 30209 (cost price at icici today) - Rs 27291 (sell price at pc chandra today for cash-back) = Rs 2918 for 10 gms gold.

7. Isn't this interesting and funny! So much so for all that certification of purity and pride of imported gold from switzerland!. If you like to create a personal collection of bank gold coins for your personal museum then you don't loose anything though!

8. PS: I then asked PC Chandra what would happen if I buy gold coin from you today and sell tomorrow. They went quite eager (salesmanship you know!) and said you just need to keep the cash memo safe along with the gold and we would buy the gold back at sell price of that day.

9. So you got the moral of the story, never ever but gold coins from bank or anybody who don't buy them back and give you liquidity.

10. Instead if you want the safety and purity of banks buy Gold ETF bonds instead. They don't have all this hassle. Buy today , sell tomorow, no preimium, no certification, just market cost price today and sell price tomorrow.

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I bought a 5 gm gold coin from hdfc bank on 24/12/2010 at Rs.12,194. Todays price shows up as Rs.12,364. A Rs.170 appreciation is what I thought but to my dismay i saw that Bank of India sells it today at a price of Rs.11,349+1% tax =Rs.11464.

The price difference is Rs.12,364-Rs.11464=900. ie(Rs.180 per gram).

I have been a user of a lot of hdfc's services and happy with all of them.

So I had developed a sense of trust in the bank and committed this blunder.

The description of the gold as regards its purity, its swiss manufacture, its assay certification are ditto the same on the bank of india website as well as hdfc website.

Why the difference then?

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I have been studying buying/selling of gold coins of various banks for last 3 years. I find that Bank of India sells cheapest bank coins as compaired to most of the banks of India. Bank of Baroda is at second place if you are buying in bulk.

Then I read from www.ringofdiamond.com that people sell bank coins to jewellers in market. Jewellers buy gold at a much lesser price than the actual bank price. Then they sell them at lesser price than bank. For example, when a bank was selling 50 gram gold coin at a price of Rs 95000, a jeweller bought it from a seller at a price of 91000 and I got it from the jeweller at a price of 92000/-.

So, instead of going to bank, I go to some jewellers and get gold coins from them. If they don't have coins at that time, I give my contact no to them, and they call me when the coins are available.

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I bought 20 gms 24K from Golpark branch, Kolkata.

I do feel that the bank has charged me at least Rs. 200 extra per gram.

I had a few logistical problem in making the purchase but the clerk was tenacious in making the deal (he even offered me to bring the gold home and collect Rs. 1500, which was falling short). I told him i can wait since i was in no hurry but he kept on pushing for the sale.

at the end of the day, i feel cheated and I am more mad at myself since I assumed that a bank was not going to be such a classless baniya.

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We have got some gold yesterday from ICICI bank, dwarakanagar branch. They charged us 100- 150 rs extra per gram and we lost around 9000 Rs in the whole transaction. They say their gold is very pure.. I am not sure how pure it is compared to the gold sold at gold shops. But we have been checking gold price every day to buy it, and my parents in India got them from ICICI without telling us. we felt really bad .. is there anything that we can do.. I know they do not take the gold back. Pls suggest.

Comment On This

Dear Customer,

I would like to post a few words for you, kindly ponder amount on the same,

ICICI BANK sels 24k 99.99% pure gold which is ASSAY certified and the certificate no is given on the back of the gold pack. The noramal 24 k gold available at the market if you go to sell the Jewelles will cut anything from 4% to 6% for purity factor. But if you go to sell ICICI BANK pure gold to any ASSAY certificated Gold marchent who is the Certifier for World Gold Councill, will take the gold without any Purity factor Cut. The Price of your Gold then Makesup the Price difference you paid at the time of Buying, many of the times the Difference is a gain for your money you have spent.

So just pondr upon before you spend your valuable time writing down your anguish.

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Dear Sir,

I have 200 kilogram of 23+ carat alluvial gold dust

which i inherited from my late father, which i have decided to put on

sale for sometimes now.

(FULL CORPORATE OFFER)

PRODUCT:---------------------- -Alluvial gold dust(AU).

ORIGIN:----------------------- ----Ghana Gold

QUALITY:---------------------- ---23+carat.

PURITY;....................... .......: 999.9/1000 (99.999)

PRICE PER 1 KILOGRAM:---- $15,500USD(Negotiable).

Best regard,

Muhammed

muhammedmored AT yahoo.co.uk

Comment On This

Thanks Saleema,

To add on to this please check the ICICI FAQ, that the do not buy back at :

http://www.icicibank.com/pfsuser/icicibank/investments/puregold/faq.htm

Q. Will ICICI Bank buy back the gold sold by them ?

A. ICICI Bank does not buy the gold sold by them.

Comment On This

Thanks for providing such good info about the bank, I have also somewhat similar experience...!!!