Gold investments – are they really beneficial?
When noted in detail, one can easily figure out the prey placed for the public behind each and every eye catchy advertisements telecast about discount on gold price. A closer look on these discounts will reveal the obvious truth that these those are something that we can obtain in any financial investment. Being unaware of all this, public throng towards gold investing schemes and offers in the market.
1. Gold schemes with
lock-in period:
Jewelers and investment companies avail offers on gold bars and
coins, but with a lock-in period. One of the investment company schemes avails
discount rates as follows:
· 15 per cent
discount on gold in case of 2 years lock-in period
· 24 per cent for 3
years period
· 30 per cent for 4
years period
· 37 per cent for 5
years period
Say for instance, you buy 10 grams of gold at the rate Rs 29,055
(as on April 15) and wait for delivery time of 5 solid years, you will have to
pay just Rs 18,588 with extra one per cent tax towards the purchase. These
together counts for Rs 18,773. Upon payment, the buyer can have a receipt of
the payment which stands as a proof for having booked gold with the selling
company. The receipt t card will have your photograph and other buying details
including date of purchase, rate at which the gold was purchased, discount,
purity level of gold, number of grams purchased, etc.
Expert opinion on gold investment:
Is gold investment actually beneficial? When interacted with a
gold expert about how far such gold investments are beneficial, he gave a note
balancing financial investment and gold investment. He says investing on gold
has several advantages as gold always has an increase in price. However, he
adds, the buyer should have a guaranteed proof from the investment company such
as a stamp paper. But, it is also to be noted that gold investments do not come
with exclusive benefits; these merely offer what one can obtain in financial
investments, he pointed.
2. Gold waiver
installment plan:
There is yet another interesting gold investing scheme in which
it is enough if the buyer pays just 10 installments. The eleventh one will be
paid by the jeweler themselves and gold worth of all the 11 installments will
be handed over to the buyer.
To better explain: consider you are paying Rs 5000 every month
for 10 months which count for Rs 50,000. Further to this, the 11thinstallment
of Rs 5000 will be paid by the investment company and at last, you will get
gold worth Rs 55,000.
How do these schemes work?
It is the ‘time value of money’ that plays a vital part here.
Any offer or discount availed by the investing company will definitely be
framed in such a way that it benefits themselves in addition to giving
discounts and extra a grams of gold the buyer.
Gold investment vs financial investment:
When you consider making a financial investment of Rs 18,700 on
this date, on calculating an interest of 9 to 9.5 per cent availed in any bank,
the amount you’ll get at the end of five years will be approximately Rs 28000
to 29000. This is in no way lesser to the gold investments that you make and in
fact, both will seem to be equal.
It is thus left to the public to choose whether to opt for gold investments or make alternative choices.
