Gold Investments

Gold jeweler has always been the most celebrated amongst Indian women. India uses the most of yellow gold as the largest consumption. But then due to the inflated prices, large quantities cannot be procured. So, as a perfect substitute gold investment schemes serve the purpose. These schemes can help investors to buy gold in advance and repay as and when the installment falls.

What are gold saving schemes all about?

Gold savings investments take place in two ways: A gold investment scheme grants you the leverage to put in a fixed amount over a fixed interval. Whenever the period ends, one can purchase gold from the concerned jeweler at an equivalent value of the amount deposited in the account. The exchange is mostly rated at the current gold price at the time of maturity. In some cases, the concerned jeweler deposits an additional sum of money as an incentive or gift.

For example, if one puts in a fixed amount in every 11 months, the 12th instalment is paid by the retailer, of an equal monthly contribution. So nowadays, jewelers either give 90% off on the last instalment or add that amount to the value of the gold at the time of maturity.  So if as an investor I have pooled in Ra 1000, then by the end of 11th month, you would have paid Rs.11000 and now the retailer will put in an additional Rs.2000 as the last instalment. Hence, my net buy will weigh around rs.13000 instead of Rs.11, 000.

There could be many schemes available in the market, its best to confirm from the referring jeweler.

Why invest in gold out of all other options?

Investing in gold is quite different than investing in regular return instruments. Earning money takes you a lot of effort. Just be rest assured about your gold investments you do.

The 2 major reasons to invest in gold can be viewed as under:

  • Firstly, it’s worthwhile to invest in gold in general as well. This is proven that gold is negatively correlated to equity which means when equity starts underperforming, gold picks up brilliantly. So, gold as an investment avenue in your overall portfolio will eliminate the existing dynamism in the market. Which in turn affects the pricing in totality.
  • Investing money in gold is a hedge against inflation. With the passage of time, gold returns will go up with the rate of inflation.

Now, the above two pointers advocate the concept of gold savings scheme & investments.

Of course, it is profitable to invest in gold and gold bonds.

Gold investment has been proven effective the year 2006 till 2011. A return of nearly 29% is way too good compared to other market investment options. Though, the average investment return on gold is less than 10%.  The future looks brighter with consistent return value.  You can either start gold investment by putting money in gold ETF or gold funds. All of this will be made possible online along with other online investments. .

For gold investments, its best to rely on popular names and then pick schemes. Also, try to diversify amongst gold schemes to balance out the risk penetration. Alongside, make a compiled file of all relevant documents and papers to show up to your jeweler and surrender. Try to maintain distance from unwanted invites and offers to be safe and secure. This is a huge investment and decision of life for most people.

If you are investing in physical gold (gold bars, gold coins, jewelry etc) above the value of Rs 2 lakhs, that one card that you need is PAN. Keep it handy!

Gold investments ordinarily work like general bank deposits like RDs. Individuals can deposit a certain sum of money to the known jeweler for a fixed period and in turn receives some money additionally on their last or second last instalment. Schemes like Harvest by Tanishq are quite in the market. These schemes ensure easing out the process of purchasing gold at affordable rates. Gold schemes are a brilliant way to plan jewellery purchases, which covers a major chunk in any Indian wedding.

Futures Market:

One can also buy gold futures in India. In the gold futures. One just needs to adhere to the terms and conditions of the contract for better returns.

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