Understanding Gold Savings Schemes in India
Gold remains a popular investment in India due to its ability to retain value during economic fluctuations. However, purchasing gold in large quantities can be financially challenging. Gold savings schemes offer a solution by making gold acquisition simpler and more affordable.
What is a Gold Savings Scheme?
A gold savings scheme functions similarly to a recurring deposit plan but focuses on purchasing gold. Participants make monthly deposits over a set period. At the end of the term, they can buy gold equivalent to the total amount deposited. Unlike recurring deposits, these schemes typically do not offer interest. Instead, jewellers provide bonuses, such as discounts on the final installment.
For example, if Mukesh deposits Rs.6000 monthly for 10 months, he will end up paying Rs.60600 but receive gold worth Rs.66000 due to a 90% discount on the last installment.
Top Gold Investment Schemes
1. Jos Alukkas’ Easy Buy Gold Purchase Plan
• Monthly deposits range from Rs.1000 to Rs.1 lakh.
• Subscribers pay 12 installments and receive a 90% discount on one month’s installment.
• The scheme lasts 360 days, with gold purchases available online or at showrooms. Subscribers can buy 22k pure gold jewelry.
2. Tanishq Golden Harvest Scheme
• Starts with a minimum monthly deposit of Rs.2000.
• Requires 10 months of deposits. Subscribers receive a discount of 75% on one month’s installment if they wait 10 months before withdrawing.
• If withdrawn after 300 days, discounts range from 55% to 75%. Purchases can include 22k gold or 18k diamond-studded jewelry.
3. Malabar Gold and Diamonds Smart Buy Plan
• Offers discounted rates on both “in stock” and “out of stock” jewelry.
• Includes free lifetime maintenance, a year of insurance, and a gold buyback guarantee.
• Payments must be made upfront, and the plan is available for jewelry that does not require resizing.
Gold Schemes by Banks
Launched in the 2015 budget, these schemes encourage depositing idle gold with banks. The deposited gold is lent to jewellers or used for other purposes. Three key schemes include:
1. Gold Monetisation Scheme
2. Sovereign Gold Bond Scheme
3. Gold Coin and Bullion Scheme
Depositors must have their gold verified at authorized locations, which is then melted and stored by refineries. Banks offer gold savings accounts based on these deposits.
Gold savings schemes make investing in gold more accessible and flexible, but it is crucial to assess personal financial conditions and investment goals before committing.
