investment in gold earning monthly income

POSTED BY bharat shah ON March 27, 2011 7:28 pm COMMENTS (5)

gold through etf route-egold route/ mf route involves recurring expense of 1/1.5% p.a. recurring expense, whereas physical gold in form of coin/biscuit involves storing risk. recently i come to know about 24-carate gold deposit scheme from a firm in pune, which gives its insurance garantee, cheque of @60% of value as security in addition to gold deposit certificate , and gives rs.120/- per 10 gm. per month as bonus. scheme is available for 24 k gold for minimum 50gms. and at least for one month period.

2. i also come to know that in cities, reputed jewelrs offers buy 1 gm. gold a month scheme, where we have to pay the cost of gold every month , and on completion of the term , the jewel will deliver the gold. so stocking of gold at home is not there for a year or so.

3. one reputed company of chennai offers the scheme as above. in addition , they offer buy of gold , minimum 50gm. and then in its multiplication with 25% of the cost ,and balance in 12 monthly interest free installments, and the delivery is also given in predetermined installments. i found the cost seems @3% higher than prevailing rate.this scheme opens for chennai and tamilnadu cities where the companies have branches.

this is just for information of members, and to discuss the pros and cons for such investments, and also share your experience of such scheme, if any.

5 replies on this article “investment in gold earning monthly income”

  1. Ajay says:

    AFAIK the catch that these jewelers have it that they give only jewellery at the end of the term and not coins.

  2. bharat shah says:

    thank you for your information. however what i like to draw attention towards novelty offering from the jewers i.e. they started to accept gold as deposit , and offering the return. in a way, it is different than what ‘tanisqu’ or ‘tbz’ are offering –they are just paying interest on your your recurring. whereas pune jweller is accepting 24k gold and offering some income on it. and that is beneficial to them also. so i wish, ‘tanisque’ or ‘tbz’ would offer such shemes, may have still low return!

  3. ashal jauhari says:

    Dear Bharat, Tanishq has a gold investment scheme. Under the scheme, one would have to pay 11 EMI of 1000 Rs. or more (in multiple of 1000 Rs.). 12th EMI of similar amount ‘ll be added by the Tanishq. At the end of year, the investor wd have to purchase jewelery from Tanishq.

    For example against a minimum 1K mly amount, the total outgo ‘ll be 11K Rs. for which 1K Rs. ‘ll be added by Tanishq & investor w’d has to purchase jewelery from those 12K rs. At the end of the term.

    A similar scheme is availavle from TBZ – Tribhovandas Bhimji Zaveri.

    Even some local reputed shops in my city (ahmedabad) are offering the similar schemes.

    I’m not commneting to invest or not to invest.

    This is just for the sharing purpose.



  4. Bharat

    Thanks for sharing this information 🙂

    1. bharat shah says:

      i wish you would speak more on the topic! particularly i think, presently you shifted to pune, so this firm could not be out of your view. it seems , they advertised in local media-print and radio. i forget to mention that they clearly stated that they are using the gold so deposited.
      on first thinking , it seems to lure the gullible, but second thinking that it is a balance business proposition, as the gold is raw material for jewellry business, they are getting cheap working capital fund at 6-7% p.a. in form of raw gold against at least at @ 12% from banks, whereas the depositor would earn @6% for otherwise idle asset. of course the firm should have doubtless integrity. as such , this is the outcome of present time, where gold and silver got new investment dimension. i wish , tanisque like reputed all india jeweller have such scheme.

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