Looking to Invest in Gold? Read About These Profitable Gold Saving Schemes July 5, 2021 – Posted in: Blog
There are several precious metals, but considering the high demand, gold has to be the top choice when it comes to investment. High liquidity and consistently rising prices of gold are the reasons why people consider it a safe investment. And the fact that it has the ability to withstand even the biggest economic upturns makes it a reliable option for investors.
However, if you’re saving to invest in gold, you must know a few things. And one of them is the difference between saving vs investment. You should always keep in mind the making charges when you’re looking to invest in gold jewellery and save accordingly. In any case, the increasing demand makes it a low-risk investment.
If you’re saving or starting to save to buy gold, you need to read about these great gold saving schemes:
Malabar Gold and Diamonds Smart Buy Plan
A profitable gold saving scheme, Malabar Smart Buy Plan allows both ‘in stock’ and ‘out of stock’ purchases. This means that you can buy jewellery available in store or get it manufactured to be received on the future date as specified on papers.
Other advantages under this scheme include getting BIS Hallmarked 916 Gold with a free year’s insurance and buyback guarantee. Buyback guarantee in gold means that when you decide to sell the jewellery, you can sell it at the market price of the gold at the time of purchase. However, the payment needs to be done in advance under this gold saving scheme.
Tanishq Golden Harvest Scheme
Tanishq Golden Harvest Scheme is a highly preferred gold saving scheme in India because you can start investing at as low as INR 2000, and the investment amount can go up to any number in multiples of 1000. Moreover, after paying instalments for ten months, the scheme starts maturing, upon which you get a discount of 75% on redemption. But if you decide to withdraw the deposits before completing 365 days, you would be eligible for a discount of 55% to 75% depending on the day of withdrawal between the 301st day and 365th day. Moreover, you can also combine your withdrawal with any Tanishq offer at the time of redemption.
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Jos Alukkas’ Easy Buy Gold Purchase Plan
Jos Alukkas’ Easy Buy Gold Purchase Plan is an online scheme in which the purchase amount is divided into 12 monthly instalments ranging from INR 1000 to INR 1 Lakh. Early withdrawal in this gold purchase plan is not available. And after completing all instalments, investors are eligible for a discount, i.e., the incentive of the plan. Now, for example, if you save INR 60,000 at Joyalukkas in 12 monthly instalments, you will be eligible for a discount of 90% of one month’s instalment (INR 5000). So, instead of INR 60,000, you will be eligible to purchase gold of 64,500, 4500 being the discount amount.
Other Gold Investments Without Jewellery Making Charges
Physical Gold – Physical gold can be bought in any form, including bars and coins, without a Demat account. The advantage of physical gold is that you do not need to pay any additional charges, such as making charges of gold jewellery. And though there is no hassle of paperwork when buying physical gold, it can get affected by fluctuations in market price. This means you can earn profit only if you decide to sell it when the market price of gold is higher than when you bought it.
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Gold ETFs – Gold ETFs or Gold Exchange Traded Funds is just like buying physical gold, except that the gold is in a paper format (Demat) instead of a physical form. This reduces the risk of theft. Gold ETFs include additional charges, such as brokerage fees and asset management charges, and are affected as per the prevailing market price of gold.
Gold Funds – A type of mutual fund, gold funds involve investing directly or indirectly in physical gold, stocks of gold mining companies, and stocks of gold production and distribution companies. There is no need for a Demat account when investing in gold funds. However, certain paperwork is required, and a minimum charge is applied for fund management. Unlike physical gold and gold ETFs, gold funds are not affected by fluctuations in the market price of gold.
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Gold investment can be profitable with minimum risk. But before you decide to invest, consider your options as well as the investment amount you can afford. Make sure to plan properly and, if needed, seek help from a professional who can lay out the details and give valid suggestions.
Author Bio:
Aatish Khanna works with the Content Marketing team at Money Club – a digital chit fund platform that makes saving, borrowing, and investing your money more efficient. He writes on topics to help his readers understand processes so they can make better financial decisions. He’s the go-to person that his family, friends, and colleagues turn to for all their money matters. He loves to play board games and aspires to one day build his one finance-related board game and app.
