'All that glitters is gold' for banks now

GM at ICICI Bank , Anup Bagchi says, "We have seen a 100% rise, Year on Year, in the sales of gold."

With gold prices at all time high levels and having jumped close to 15% this year, Indian consumers are not just buying jewellery any more but also coins with the sole purpose of investment.

Banks are selling hallmarked 2.5 gms to 50 gms gold coins and bars this festive season with a small profit margin.

Head-Liabilities and Payment Prodcuts Group at HDFC Bank , Chitra Pandeya says, "Banks earn small margins. Banks are selling mutual funds, insurance and gold is also becoming popular as an investment avenue."

Buying gold from a bank is a reliable option as these are 99.9% pure gold coins that come with quality certification, resale also becomes easier. However, one should make sure that these gold coins are held for atleast three years or else one would end up paying a 20% capital gains tax.