i am not sure whether this is a one off experience or true across many locations…
In chennai when a friend tried to sell gold worth Rs. 3L – she was told she could exchange gold ornaments for gold, but no cash. She had the same experience in a few other reasonably sized shops.
I asked a friend who is in the gold jewellery business – and he said there are two reasons:
– the chances of the gold being stolen keeps a lot of shop keepers away from doing the business
– buying gold jewellery makes no sense – simply because it cannot be sold as it is. The gold has to be melted and then reused.
I was quite shocked. Readers of my blog know how anti gold I am – and I am not even saying that you could not have made money from 2000 to 2012….but I was stunned at this ‘illiquid’ asset.
Luckily she was not trying to sell the gold to pay a hospital bill or for her kid’s college fees! She just went back home and looked around for a buyer… – I am doing this post for you to keep checking the ‘liquidity’ angle for the so called ‘liquid assets’.
Please post your experiences…..please do not tell me that Muthoot finance is the only source of getting money against gold!!
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