You can buy gold coins from banks, jewellers and bullion traders though we consider buying gold coins from bullion traders as the best and the cheapest option.
First, let's understand what the gold coin rate really consists of and later why should one prefer buying gold coins from bullion traders and not from local jewellers or banks.
A 24 karat 10 gram gold coin cost consists of actual 10 gram 24 karat gold rate, coin making charges, mark-up charges and government taxes. Mark-up charge is nothing but just a term used for profit margin.
Now let's analyse which of the above 3 options offer us the best rate for buying a gold coin.
Most bank in India sell 24 karat gold coins but none buys them back. Also, the gold rate offered by banks is not just higher than the market rate but highest of the 3 options in discussion.
Mostly, all local and big brand gold jewellers do sell gold coins. Unlike banks they will buy back gold coins from you if you wish to sell them back. But here the gold rate is higher than what a bullion trader offers. Jewellers do add a good amount of mark-up charges (anywhere between 1000 to 2000 rupees or more) to book profits and to safe guard themselves against gold rate fluctuations. Also, jewellers in general hike gold selling rate immediately when the gold rate rises but doesn't lower it as quickly when the rates go down. Gold jewellers are also not know to give a good buy back rate compared to bullion traders.
Bullion traders sell gold coins closest to the live gold rate or the MCX gold rate with mark-up charges between 200 to 700 rupees. As jewellers they not just buy it back but are also believed to give better buy back rates. Bullion traders business mainly depends on buying and selling gold and silver in bulk and hence they can afford to work on thin margins than the jewellers or banks.
Note: Be it gold jewellers or bullion traders always buy gold or silver coins with proper bills and taxes paid.