What are the common Gold Jewelry schemes in jewelry shops?
Gold jewelry has long been a symbol of wealth, tradition, and financial security. However, with its popularity comes a variety of investment and savings schemes designed to make gold purchasing easier and more beneficial for consumers. Whether you're looking to buy gold for personal use or investment purposes, understanding these schemes can help you make informed decisions. Here are some of the most common gold jewelry schemes available today.
1. Gold Savings Scheme
Gold savings schemes, often offered by jewelers, allow customers to deposit a fixed amount every month for a specified period (typically 6 to 12 months). At the end of the tenure, the jeweler adds a bonus amount (usually equivalent to one installment) and allows customers to purchase gold jewelry worth the accumulated amount. This scheme helps consumers systematically save for gold purchases without feeling a financial burden.
Benefits:
Encourages disciplined savings
Reduces the impact of gold price fluctuations
Additional bonus from the jeweler
Drawbacks:
Jewelry purchase is mandatory (no cash withdrawal)
Making charges and wastage fees still apply
2. Gold Loan Scheme
A gold loan scheme allows individuals to pledge their gold jewelry as collateral to obtain a loan from banks or financial institutions. The loan amount is typically a percentage of the gold’s current market value, and interest rates vary based on the lender’s policies.
Benefits:
Quick access to funds with minimal paperwork
Lower interest rates compared to unsecured loans
No impact on credit score
Drawbacks:
Risk of losing gold if repayment is not made on time
Interest rates and processing fees may vary
3. Digital Gold Investment
Digital gold is a relatively new and popular way to invest in gold without physically holding it. Platforms like Paytm, Google Pay, and brokerage firms allow users to buy and accumulate gold online, which can later be converted into physical gold or sold for cash.
Benefits:
No need for physical storage