Bullion India – How safe is this platform for investing in gold and silver?

Bullion India – How safe is this platform for investing in gold and silverBullion India – How safe is this platform for investing in gold and silver?


Bullion India is the online platform where an investor can buy and sell Gold and Silver in India. Through Bullion India, you can buy gold as low as 0.1 gram and silver as low as 1 gram. Bullion India offers SIP option to invest in gold and silver where you can invest as low as Rs 1,000 per month. This article is based on request from Shiv Anand on Suggest a topic. What are the benefits of investing in gold and silver through Bullion India platform? How does Bullion India work exactly? How safe is Bullion India? In this article let me do Bullion India Review.

Also Read: Loan Against Gold comes cheaper then Personal Loans – Should you opt for Gold Loans?

What is Bullion India?


Bullion India, is a platform where you can purchase physical bullion (Gold / Silver) in smaller denominations and online. The Gold / Silver, purchased from Bullion India can be used to shop for coins, bars and jewelry on the website or at any empanelled jeweler across India. Customers can also sell the bullion (bought from us) in a secured and convenient manner back to Bullion India.

What are the benefits of investing in gold and silver through Bullion India?


Bullion India Review - Online purchase of gold and silverIt is simple to register as a member. You can visit bullionindia.in and  register. You need to fill personal details, confirm your email and complete your KYC. All this can take few minutes, however Bullion India customer would take 24 hours to review your application. Till such time you can login, but cannot buy gold or silver.

  • You can purchase gold and silver in small quantities. You can buy as low as 0.1 grams of gold and as low as 1 gram of silver through this platform.
  • The prices indicated on website are wholesale prices which are better compared to other jewelers.
  • You can purchase gold and they would be kept in Safe vault without any storage charges or insurance charges.
  • Physical gold / silver is stored in Brinks vault (which is generally used by banks and AMCs for their Gold ETFs). This vault is monitored by independent authority i.e. IDBI Trustee.
  • You can shop online for gold bars / jewellery and use the gold stored in Bullion India.
  • You can also use gold / silver for offline transactions with any empaneled jeweler.
  • Door delivery is available for articles shopped online.
  • You can invest in Gold / Silver every month through Systematic Investment Plan (SIP) as low as Rs 1,000 per month.
  • You can sell gold and silver back to Bullion India as per the prices indicated on their website.

Bullion SIP in Gold / Silver every month – How does it work?


  • Bullion India Review - Buying Gold and silver through SIPsAny registered user can buy gold or silver by SIP every month through Bullion India.
  • You need to invest as low as Rs 1,000 per month. The SIP amount would be divided into 20 (days), in a month and equal amount of gold would be purchased. E.g. if you are investing Rs 2,000 SIP, then Rs 100 per day of gold would be purchased by Bullion India on daily average prices. Such gold would reflect by the end of the day in your account.
  • You can invest for the tenure of 6, 12, 24, 30 and 36 months. You cannot extend the SIP.
  • The gold purchased is 24 carat and compliant with international gold standards.
  • Gold would get accumulated throughout the SIP period and once SIP is completed, you can buy gold bars or jewelry through the online process indicated earlier.
  • You can check SIP statement online or download it.

How does Bullion India work exactly?


  • You need to register and complete KYC
  • Deposit money by using deposit option.
  • You can Buy gold / Silver with the option available in your login (Buy Gold/Silver).
  • You can sell Gold /Silver with the same option (Click Buy Gold / Silver and Enter Qty and click Sell)
  • If you want to take back the money which you have deposited, you can select “Withdrawal option”.
  • Click on SIP option to create SIP and indicate the SIP amount and tenure. If you do not keep funds for SIP as per the SIP date, they would give grace period of 5 days and then your account would be terminated.
  • Click on Shop option to check jewelry / gold bars online. You can adjust your existing gold units against such online gold jewelry purchased.
  • You would see a) Balance (Amount available in your account), b) Gold Grams and c) Silver Grams on the top right hand side of the screen. These are the available balances in your account.

From where does Bullion India get money if there are no transaction charges?


Bullion India does not charge transaction charges. However, the price quoted by them on their website includes transaction charges and VAT. Also if you buy and sell gold / silver on their website, they take out 1.2% of the profits from you and balance would be credited back to your account. E.g. If gold accumulated is at a cost of Rs 100,000 and you sold at Rs 110,000 ( Profits are Rs 10,000). Now they charge 1.2% on your profits i.e. Rs 10,000 x 1.2% i.e. Rs 120. They would take out these charges and balance of Rs 109,880 (Rs 110,000 minus 120) would be credited to your bank account.  In case you incur any loss while selling, entire amount of selling price would be paid back to you.

Also Read: Best Money Saving Ideas you can implement right away

Is Bullion India Safe to invest in Gold and Silver?


Bullion India - Is it safeAll this is fine, but is Bullion India safe platform to invest gold and silver? One should not forget about NSEL Scam happened few years back. Many investors have lost their money.

When Bullion India is required to remove the Gold and Silver from the vault on account of the Customer selling to Bullion India or using the quantity for shopping, the quantity of Gold / Silver will be removed from the vault only after the approval of the Trustee. The Trustee has a first and exclusive charge over this Gold / Silver over other commercial creditors and this Gold / Silver is separate from the other assets of Bullion India. Thus, any unlikely adverse event happening to Bullion India should not affect the Gold / Silver associated with your account.

I would not rule out these legal statements made by Bullion India on their website. My advice to investors is don’t invest in gold / silver through such platforms for long term. You can use it for short term. Avoid investing through such platforms through SIP. You cannot cancel nor withdraw gold before the tenure of the SIP which is the major drawback.

Readers, what is your view about Bullion India? Are you buying and selling gold / silver through this platform? What are your experiences?

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Suresh

Bullion India – How safe is this platform for investing in gold and silver?

9 comments

  • Jimmy

    Good morning  Suresh

    This is very  informative article.i am a NRI  can I open the account  in bullion trade ?

     

    Regards

    Jimmy 

     

  • Jack

    Thanks for the post. Have you got time to check PayTM? They also offer such option of buying gold using PayTM. Can you please let me know your thoughts on the same?

  • Arul Selvan

    Why take so much pain and risk? Gold BEES can be purchased and sold without any hassle and the price is decided by the market forces.

  • Raju Penumatsa

    Thanks a lot for your views on this. I have two questions Suresh.
    1. Is Investing in Gold/Silver safe bet even now?
    2. Recently Paytm also started the similar concept of buying and selling as low as 1gm/1Rs Gold through their platform. Would like to check with you on your views.

    • Hi Raju, Investing in gold should be based on need. If you want to accumulate gold for future requirement or for daughter marriage, you can invest in gold. Don’t invest for sake of returns. Yes Paytm also launched platform to invest in gold. I would review this in next week.

      • Raju Penumatsa

        Yes Suresh. I do agree with you on this and waiting for your next review. Thanks a lot for your simple and easy to understand analysis reports through this blog.

  • Ashish

    If we have to invest in gold silver I think ETF would be a better option.

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