I’m looking for a gold saving scheme, but I want to avoid the high making charges at the end. Are there any schemes from jewellers that offer zero making charges on redemption?
Some jewellers in India offer gold savings schemes that come with a “zero making charge” benefit. These are typically “fixed gram” schemes where you accumulate gold weight over time. However, it’s very important to understand that this benefit is usually restricted to a very limited selection of basic items, like plain gold coins.
Understanding ‘Fixed Gram’ Gold Saving Schemes
My friend was exploring alternatives to rupee-based plans and found a “fixed gram” scheme at a regional jeweller. Unlike plans where you save a fixed amount of money each month, in this scheme, her monthly installment was used to buy and credit a certain weight of gold to her account based on that day’s rate. This method protected her savings from any future increases in the price of gold.
The ‘Zero Making Charge’ Benefit and Its Limitations
The main attraction of this particular scheme was the ‘zero making charge’ offer at maturity. My friend learned that when she was ready to redeem her accumulated gold grams, she could choose a plain gold coin of the equivalent weight and pay absolutely no making charges. However, she also discovered that this attractive offer was limited to only gold coins and a few very basic, machine-made chains.
The ‘Catch’: Paying for More Desirable Jewellery
My friend’s ultimate goal was to buy a designer necklace for her wedding. When she went to the store to redeem her plan, she found that the ‘zero making charge’ offer did not apply to the intricate piece she wanted. To purchase the necklace, she had to use her accumulated gold grams to pay for the gold value, and then pay the necklace’s full, and very high, making charges (around 22%) separately out of her own pocket.
A Modern Alternative: Digital Gold for Zero Making Charges
I suggested to my friend that if her primary goal is to save in the form of pure gold while completely avoiding making charges until the final purchase, then digital gold is the most flexible option. She can accumulate 24k gold over time with no making charges at all. She only pays these charges if and when she decides to redeem a specific coin or when she uses the value at a partner jeweller to buy an ornament.
1 Like