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

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?

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

  1. 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.

  2. 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.

  3. 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.

  4. @Sandip:

    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.

  5. 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.

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