Making gold investments accessible

Goldhas long been cherished in India not just for its cultural significance but also for its value as an investment. As gold prices continue to rise, buying physical gold—whether as jewellery or bullion—can be financially challenging for many. To ease this burden, various financing options like EMIs, gold savings schemes, and digital gold have emerged, making it easier for consumers to invest in gold without requiring large upfront payments. Here’s a closer look at the financing options that are transforming the gold investment landscape in India.

Gold on EMI: The Most Popular Option

One of the most common ways to purchase gold today is through EMI (Equated Monthly Installment) schemes, which are offered by both jewelry retailers and banks. These schemes allow consumers to buy gold without paying the full amount upfront and instead, spread the cost over several months.

Jewelry store EMI plans: Many renowned jewellery stores offer flexible EMI options, allowing customers to pay for their gold purchases over 3 to 12 months. These plans usually require an initial down payment, followed by monthly installments. Some retailers offer attractive 0% interest EMI schemes, making it easier for customers to manage their finances without paying additional costs.

Credit card EMI facility:Banks also provide customers with the option to convert high-value gold purchases made via credit cards into EMIs. With tenures ranging from 3 to 24 months, this option allows buyers to break down the payment into smaller amounts. However, interest charges apply depending on the credit card provider and the selected repayment period.

Gold Savings Schemes: Saving Towards a Golden Future

Gold savings schemes have become increasingly popular as they offer a systematic approach to investing in gold over time. These schemes are typically offered by jewellers, allowing consumers to save small amounts monthly for a set period—usually 11 to 12 months.

How they work: With these schemes, customers make regular monthly contributions, and at the end of the saving period, they can use the accumulated amount to purchase gold. Some schemes offer additional bonuses or contributions, giving customers more gold than their savings would otherwise provide. Furthermore, certain schemes allow buyers to lock in the gold rate at the time of the first installment, protecting them from price hikes during the saving period.

Bank Loans for Gold: Financing Larger Purchases

For individuals looking to make significant gold investments, bank loans specifically designed for gold purchases are another viable option. These personal loans typically have interest rates between 10% and 18%, depending on the bank and the loan tenure.

Flexible repayment: The tenure for these loans typically ranges from 12 to 36 months, offering flexibility in repayment. Eligible customers, such as salaried professionals and business owners, can avail these loans, provided they meet basic criteria like a stable income and a good credit score. This option allows buyers to spread the cost of their gold investment over a longer period.

Gold Exchange Programs: Trade Old for New

Another way to invest in gold without a large outlay of cash is through gold exchange programs. Many jewellers offer the opportunity to exchange old gold jewellery for new pieces, allowing consumers to upgrade their collection.

How it works: The value of the old gold is assessed based on its weight and purity, and it can be traded for new gold items. Some jewellers even offer discounts or reduced making charges for the exchanged gold, making it a cost-effective option for buyers looking to invest in fresh gold.

Digital Gold: A Modern Investment Option

Digital gold, an innovative fintech solution, allows consumers to buy gold in small amounts starting as low as ₹1. Unlike traditional methods, digital gold doesn’t require physical storage, as the gold is kept in insured vaults.

Flexible and liquid: The advantage of digital gold is its liquidity and convenience. Investors can buy or sell gold anytime through digital platforms. Moreover, there are no making charges involved, making it an ideal option for those who want to accumulate gold gradually without dealing with the complexities of physical storage.

Augmont, a leading platform for precious metal investments, provides a range of services, from digital gold to gold SIPs and EMI schemes. With its transparent pricing and flexible investment options, Augmont has become a popular choice for investors seeking to diversify into gold. The platform ensures that both digital and physical gold products are stored securely, offering peace of mind for risk-averse investors. These financing options—whether it’s the flexibility of EMI plans, the systematic saving approach of gold savings schemes, or the convenience of digital gold—have made gold investment more accessible than ever before. With these diverse solutions, Indian consumers can now easily incorporate gold into their portfolios without thefinancial strain of a large upfront payment. By understanding the available options andchoosing the one that fits their financial goals, investors can confidently invest in gold, a timeless asset.

(The author is a director Of Augmont - Gold For All)