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There are a range of gold schemes in India which allow you to invest in gold. Let’s understand these schemes in detail.
The GRT Gold Eleven Flexi Plan offers an investment opportunity with an amount as low as Rs.500 for monthly payments for a period of 11 months and buy jewellery in the 12th month. This scheme is beneficial to customer of any financial standing and also offers complete refund in case non purchase of jewellery is done at the end of the tenure.
The Tanishq Golden Harvest Scheme enables investors to deposit money for a period of 6-10 months and use it to purchase jewellery on maturity of the scheme with a discount of up to 75% on the value of jewellery purchased under the scheme.
The Tanishq Swarnanidhi Scheme allows investor to book gold in small denominations i.e. in grams and redeem them against purchase of gold jewellery from Tanishq. Monthly deposits for 8 months are converted into grams of gold in accordance with the prevailing gold rate at the time of the deposit. There is no restriction on the number of deposits made during the tenure.
The investors can choose the amount they wish to invest per month. However, the decided amount cannot be altered during the course of the scheme. At the same time, the amount cannot be less than Rs. 3000 and is in multiples of Rs. 500 thereafter. The scheme offers a 10% discount on making charges at the time of maturity.
This scheme has a time period of 12 months and requires a minimum investment of Rs. 1000 and in multiples of Rs. 100 thereon. On the date of maturity, gold equal in value to the investment is credited to the investors account based on the prevailing rate. The customers receive an additional interest of 8% on the total value of the interest along with a 10% discount on making charges.
Also known as the Sanchayat Dhanavardhan, this savings scheme allows investors to plan for their gold purchases. Payments are made in advance and are used to buy gold. Investors can choose between 12, 24 and 36 month investment periods. This scheme is beneficial for all income groups as the minimum investment amount is Rs. 500.
The tenure of Kalyan Jewellers Gold Scheme is 12 months and can be closed by making a purchase of the gold selected. Monthly instalments can be worth any amount between Rs. 500 to Rs. 40000 depending on the jewellery chosen at the beginning of the scheme. All investors, be it individuals, trust funds, hedge funds, financial institutes or universities, need to be Indian. Investments on behalf of minors are permitted as well.
The scheme has a tenure of 2 years from the date of enrolment and deposits are made in multiples of Rs. 250. Customers are eligible for bonuses 6 months after enrolment which can be used to pay off making charges, either partly or fully at the time of purchase of jewellery. Any competent Indian National is eligible to invest under this scheme.
Malabar Gold & Diamonds Smart Buy Scheme enables customers to save money while buying jewellery by offering discounts on products which can either be from the In Stock range of products and also Out of Stock items for which orders can be placed to be delivered at a pre-decided date. If an individual wishes to order items which are size oriented, they can be ordered through the Smart Buy + Customize Option.
Customers can also opt for the 14 day return policy while buying ready to deliver products.
The Prince Save N Gold Scheme requires customers to make 11 consecutive monthly payments with the minimum amount being Rs. 500 and its multiples thereon. At the end of the 12th month, the customer can buy jewellery worth the amount invested.
The investor has to be a citizen of India and their signature is verified at the time of delivery of the gold.
Prince Save N Diamond requires a minimum investment of Rs. 5000 and thereon in multiples of Rs. 1000. The investors are provided with a passbook to keep track of monthly payments. After making 11 monthly instalments and advance payment for the last month, the investors can buy the diamonds with Rs. 5000 off per carat, 25% off on making charges and 10% off on uncut diamonds.
The eligibility criteria is the same as Save N Gold.
The customer has to pay a fixed instalment before the 10th of every month for 11 months, after which he can buy the jewellery of his choice. In case the value of the jewellery is greater than the investment, extra charges are incurred. Minimum investment is Rs. 1000 and in multiples of Rs. 500 thereon. It is beneficial as no additional charges are incurred while buying jewellery. The eligibility criteria is the same as Save N Gold/Diamond.
PNB Sovereign Gold Bonds are available in denominations of 1 gram gold with the minimum purchase being 2 grams of gold with an upper limit of 500 grams annually. Bonds carry a fixed investment of 2.50% per annum on the original investment and can be transferred to a third person with no tax charges.
Any Indian citizen or organization can invest in this scheme. Multiple investors can hold a joint account and a legal guardian can make investments in place of a minor.
These are 24 karat coins produced in Switzerland and branded with the PNB logo and come in derivations of 5, 8, 10, 20 grams. These coins are an excellent investment as value of gold is very high and can also make excellent gifts.
Eligibility criteria is the same as Sovereign Gold Bond.
The Andhra Bank Sovereign Gold Bond Scheme is open for subscription at the issue price of Rs.3890 per gram, subject to a minimum of 1 gram and maximum 20 grams. The tenure is of 8 years with an interest rate 2.5% per annum payable half yearly. It is open to all citizens of India above 18 years of age and to all Indian institutions and organizations.
The ICICI Dream Gold Plan helps investors to raise funds with the purpose of buying gold through a fixed or a recurring deposit. The investment can raise a loan of up to 90% of its value. The plan allows a 30% discount on purchase of ICICI Gold coins till three months after maturity. Any Indian citizen above 18 years of age and any Indian organization can invest in this scheme.
This scheme gives investors the opportunity to earn interest on gold deposited to the bank for a minimum period of 3 years on a minimum of 30 grams of gold. Investors are free to extend the tenure up to 15 years with interest being paid annually. Any Indian above the age of 18 or any Indian institution may invest in this scheme.
ICICI bank offers 24 carat gold in denominations of 0.5, 1, 2.5, 5, 10, 20, 50, 100 grams for sale with assurance certificates at no additional costs, providing complete value for money to the buyers.
The ICICI Sovereign Gold Bonds are issued for 8 years with buyout options from the 5th year onwards. The bonds are government authorized and hence, returns are assured and are tradeable on the stock exchange if the investor wants to get back his investment.
The HDFC Sovereign Gold Bonds help you earn an interest of 2.5% per annum for a period of 8 years with the option of exit from 5th year onwards. The minimum investment for all entities is 1 gram of gold while the maximum is 4 kg for HUF and individuals and 20 kg for trusts and other charitable institutions.
The bonds are available for sale to all Indian residents, HUFs, Universities, Trusts and charitable institutions.
Axis Bank offers gold mohurs in 24 Karats with 99.99% purity certifies by Assay in various denominations for ease of purchase. The price of the mohurs are decided as per the prevailing gold rates. For purchases exceeding Rs. 50000, a PAN card copy is needed. All Account holders of Axis Bank are eligible to buy the Mohurs.
Investors can buy SBI Gold Coins at SBI branches available at denominations varying from 2 grams to 50 grams with guarantee of best prices and purity ascertained by Assay. All individuals and organizations are eligible to buy SBI gold coins.
This scheme has been initiated by the government to make productive use of the idle gold in the country. Customers can deposit their gold with the bank and earn interest with the minimum deposit being 30 grams. The tenure for this scheme varies from 1 year to 15 years. The interest earned on the deposit increases with the tenure. Premature withdrawal once the tenure is fixed will attract a penalty. Individuals, proprietors, companies, partnership firms, HUFs and Trusts are eligible for this scheme.
This scheme issued by the RBI is available in multiples of 1 gram for a tenure of 8 years with exit option available from 5th year onwards with an interest rate of 2.5% per annum. The maximum limit for subscription is 4 kg for individuals and HUFs and 20 kg for trusts and other such entities. Eligibility is available to all resident Indians, HUFs, Trusts, Universities and Charitable Institutions.
There are other gold schemes too like the following:
However, the above-mentioned schemes are quite popular and can be chosen for investing in gold.