Investment Strategies: What’s A Good Way To Save For Purchasing Gold Ornaments?

by Vinaya HS on September 30, 2010

in Finance

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A reader asks,

I need to purchase gold ornaments for a family event that’s about twelve to fifteen months away. What’s the best way to go about saving for this goal? I can set aside a certain amount each month from my salary.

The question had me stumped since I’ve never saved/invested specifically with the goal of buying gold ornaments. I have heard of gold purchase plans (such as this) offered by leading jewelers but I’m not sure how good or how safe they are. But the scheme does look good on paper.

Posing this question to you. What would you suggest?

Thanks for reading this article. I'd love to hear your opinion. Please use the comments section below to share your thoughts. I frequently write new articles that also cover several other aspects of personal finance including credit cards, financial goals, health insurance, income tax, life insurance, mutual funds, retirement planning, and much more. You can Subscribe through Email and receive new articles directly in your Inbox or you can Subscribe through the RSS Feed and receive new articles in your feed reader.

{ 11 comments… read them below or add one }

Shilpa September 30, 2010 at 3:59 PM

I am not into gold ornaments.

But if I had to, I wouldn’t invest in the gold schemes from leading jewellers. The rate of gold price rise far exceeds the measly monetary bonus the jeweller gives.

I’d rather buy gold coins every month, say 1/2g or 1g – depending on how much I can afford. Once a substantial chunk is collected, I’d exchange it for ornaments. That way, I beat gold price rise. You’ll have to track gold prices regularly, though.

Vinaya H S September 30, 2010 at 8:28 PM


Do the jewelers accept gold coins? These are 24-carat ones right? Would there be any monetary loss during this exchange?

Vinay September 30, 2010 at 10:06 PM

Vinaya- Please visit Sri Krishna Diamonds and Gold Jewelry corner of Commercial street they have good gold schemes for 12, 24, 26 months. You can plan accordingly. Why I am suggesting is their collection are excellent. I am doing couple of investments their. Many leading jewelers have schemes since it’s gold you need varities of choices and collections and felt these guys r good.

Vinaya HS October 1, 2010 at 1:33 PM


Thanks for the tip. :-) But it’s not for me. A reader of this blog had asked the question.

Sandip Sabnis October 1, 2010 at 2:51 PM

Gold schemes from jewelry shop is good option. Another option is to purchase GoldBeeS in sharemarket regularly and sell it when you are going to buy actual physical gold.
Frankly speaking to purchase a gold for ornaments would not be investment hence purchase it as and when possible bit by bit. This would be best way I think.

Vinaya HS October 1, 2010 at 5:23 PM


You’re correct. Technically it’s not an investment per se. But felt including the question here would bring out a couple of investment options too — such as the Gold BeeS option that you mentioned.

Shilpa October 1, 2010 at 8:28 PM

Yes, jewellers accept coins in lieu of ornaments.
You get both 24 and 22 karat coins.
You’ll have to pay melting charges. You wont have to pay for any wastage (on the 24 karat coin).

Abishek October 8, 2010 at 10:02 AM

Khazana has good schemes and one good thing about gold fund at Khazana jewellery is that you can get gold coins on maturity on scheme.. If you go elsewhere, you have to ornaments done there itself and they charge a bomb for wastage (minimum 20%).

Also, gold ETF is one good option.. check it out. There are probably 2 ETF schemes in India and both are good and are run by standard institutions.

Vinaya H S October 8, 2010 at 10:16 AM

@ Abishek:

Thanks for the tip. I’ve actually scheduled for this weekend a great article that I found on investing in Gold ETFs in India.

Chris April 17, 2012 at 2:25 PM

call back regarding gold scheme my nos is 9986349040

FARHAN ALI December 6, 2012 at 10:16 PM

call back regarding gold scheme my no 00923018351237

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