‘Don’t fall for the shine...’: CA lists hidden costs of physical gold, silver investments

In a detailed post on X (formerly Twitter), Chartered Accountant Nitin Kaushik cautioned investors against the allure of physical gold and silver, arguing that emotional appeal often blinds buyers to the hidden costs and inefficiencies of tangible metal investments.

“Gold and silver feel safe. They shine. They create a sense of wealth,” Kaushik wrote, before dissecting three often-overlooked challenges that come with buying physical precious metals: spreads, storage, and purity concerns. Advertisement

The spread trap

Kaushik highlighted that most retail buyers underestimate the buy-sell spread — the difference between what they pay and what they can get when they sell. “Buying physical gold means paying the retail price, which includes dealer margins, GST, and making charges,” he note