Regular Bank R.Ds vs Jewellery Chit schemes

Dear friends,

Iam planning to open a chit account in a jewellery(monthly installments from 500 to 10,000...I may go for 1000 rs per month).Does it provide more benefit than regular bank R.D?

The benefits are no making charge,no VAT,no wastage while buying jewellery after the completion of 12 months chit.

My dear RG,
Even I too have this dilema whether to open or not?
If they happened add atleast 1 installment + a joining gift + no making chaarges+No VAT+NO wastage, would definitely beneficial than RD.
But my concern is, I need to buy in that particular jewellery shop only.
Again they may say "Conditions Apply"....Lets see how other IL's respond, hope some of them already had experience on this.

I've invested in one such scheme from recognised jewellery shop, rs 2000 pm for 12 mths, i felt will be beneficial as investing in gold can never b a waste.

Thanks for the inputs dear Hema.I have the same concern Because of the increase in gold price,now the schemes have changed with no gift and no bonus...

Let us wait for more responses and decide.

I remember having one a while ago! One benefit of the jewelery scheme is that your buying power is decided based on the gold rates when you start the scheme. So 12 months down the line if the gold price has gone up significantly then you gain something. But DH says if you invest it wisely elsewhere, you make a better profit! If the gold prices fall in the 12 months then again, bad luck!

I have saved like this for a few years and bought jewels from that shop itself. I feel that it is ok because otherwise we will use the money for something else. Now I don't do that due to the skyrocketing price of gold. But I can say that I got some good jewellery that way.

Regular bank R.D.: Gives only 7 to 8% return per year, too less at the current rate of inflation and less risky.

Jewelry scheme: Good but not much reliable, as scheme is operated by local jewelry. Quality of gold is not assured. Risky as done by local private jewelry shops, no government control over the scheme.


Smart Gold investment: Gold price is going record high and is expected to go up in coming days. Under this smart gold investment scheme, investors pay an initial margin. The balance is paid in instalments of their choice, namely, Rs. 7,500, Rs. 4,000 and Rs. 2,500.

The scheme allows investors to lock the price of gold at the current market rate, enabling them to get gold at competitive prices.

They can sell the gold in futures and exit at any time at the then prevailing market price and demand immediate money.

If the market fluctuations give the better rate, individuals will get to enjoy the profit without having to lift delivery of gold. At the end of the instalment period, investors have the option of taking delivery in physical or demat form. Gold taken in delivery are issued by government regulated agencies and one can be 100% sure of the quality.

The facility to keep the gold in demat form will help investors get back the VAT charges paid by them on selling. However, they have to bear the necessary warehouse charges for keeping the dematerialised gold.

The clearing member will roll over the contracts every month as per the regulations of the commodity exchanges. This way, investors’ position is marked to the current rate of the exchange.



There is no risk of theft or loss as gold in invested in demat form.

Manju,
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