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Gold Savings Schemes in Jewellery Stores: Are They Worth It?
Gold Savings Schemes in Jewellery Stores:
Gold savings schemes have become increasingly popular in India, especially among those who regularly invest in gold for weddings, festivals, or long-term savings. These schemes, often introduced by local and national jewellery stores, are marketed as a smart way to accumulate gold without feeling the financial burden all at once. But are they truly worth it?
In this guide, we’ll explore how gold savings schemes work, their benefits and risks, and whether they make sense for you—especially if you’re shopping in a jewellery-rich city like Mangalore, where top stores like S.L. Shet Diamond House, Ladyhill, offer such options.
What Is a Gold Savings Scheme?
A gold savings scheme is a monthly deposit plan offered by jewellery stores where customers deposit a fixed amount for a set period (usually 11-12 months). At the end of the term, the jeweller adds a bonus or discount, allowing the customer to purchase gold jewellery worth the total amount deposited plus the added benefit.
How Do These Schemes Work?
Step-by-Step Process
Monthly Deposit: You choose a fixed monthly amount (e.g., ₹2,000 – ₹10,000) and deposit it each month with the jeweller.
Tenure: Most schemes run for 11 or 12 months.
Bonus Month or Discount: After completing the tenure, the jeweller may offer a “free” month’s deposit or a discount on making charges.
Jewellery Purchase: You can use the matured amount (plus bonus/discount) to purchase gold jewellery from the same store.
Pros of Gold Savings Schemes
1. Helps You Save Systematically
Instead of a lump sum, you invest small amounts over time, making gold buying less financially stressful.
2. Discounts and Benefits
Most reputed stores, including S.L. Shet Diamond House in Ladyhill, Mangalore, offer attractive benefits such as:
One free installment (i.e., pay for 11 months, get the 12th free).
Discounts on making charges, which can be as high as 100% on selected items.
3. Safe and Transparent
These schemes are usually transparent, especially when dealing with BIS-hallmarked jewellers. Trusted names in Mangalore ensure proper documentation and accountability.
4. Price Protection Options
Some jewellers offer gold rate protection, meaning you can lock in gold prices or choose the best rate on the day of purchase, minimizing risk due to gold price fluctuations.
Cons of Gold Savings Schemes
1. No Cash Redemption
These schemes usually don’t offer the option to withdraw cash. Your returns are only redeemable against gold jewellery.
Who Should Consider These Schemes?
Ideal For:
Brides-to-be or families planning weddings.
Festive buyers who want to accumulate gold slowly.
Loyal customers of specific jewellery brands (e.g., S.L. Shet Diamond House).
Not Ideal For:
Investors looking for high returns.
People seeking liquidity or cash flexibility.
Gold Savings Schemes in Mangalore
In Mangalore, where gold culture is deeply rooted in tradition, many families rely on trusted jewellers for life events. One such store is S.L. Shet Diamond House, located in Ladyhill, known for its heritage, transparent schemes, and customer-first approach.
Their gold savings programs typically offer:
Free installment benefit.
Making charge discounts.
Exclusive designs and early access to collections.
BIS hallmarked jewellery ensuring purity.
Frequently Asked Questions (FAQs):
Gold savings schemes help you accumulate gold without paying a lump sum. They are ideal for planned purchases like weddings or festivals. However, if you want immediate possession or flexibility, direct buying may be better.
Depending on the jeweller, you can save the equivalent of one month’s installment or get up to 100% off on making charges. For example, depositing ₹5,000/month for 11 months could give you a ₹5,000 bonus—totaling ₹60,000 worth of gold.
There’s minimal financial risk if you choose a reputed, BIS-certified jeweller. But unlike financial investments, these schemes don’t offer interest or cash returns—only jewellery benefits.
Missing payments can result in a loss of the bonus month or delays in maturity. Always read the jeweller’s terms carefully. Some stores offer grace periods or partial benefit options.
People planning:
Wedding purchases
Festival shopping
Gifting occasions
will benefit the most. It’s a disciplined way to save and earn jewellery perks.
Conclusion:
Gold savings schemes offered by jewellery stores like S.L. Shet Diamond House, Ladyhill can be a practical and convenient way to accumulate gold for future purchases. While they’re not traditional investment tools, they serve as a disciplined savings method for those who value gold for cultural, emotional, or wedding-related reasons.
Pro Tip: Always read the terms and conditions of the scheme carefully, compare benefits from multiple jewellers in Mangalore, and ensure you’re dealing with BIS-certified gold providers.