Gold - Buy digitally, lease it and convert physically.

Gold has reached a new high, making it increasingly difficult for the middle class to purchase. I specifically mention "to buy" rather than "to invest" because most Indians view gold not as an investment but as a consumable asset. They are more inclined to buy gold jewelry or physical gold with the ultimate aim of creating jewelry from it.

However, due to higher gold prices, purchasing jewelry has become more challenging, as one needs to spend almost a lakh rupees to make 10 grams of jewelry. To address this difficulty, jewelry shops offer a scheme called SIP in gold. They provide a 12-month SIP where you pay a specific amount, say INR 1,000, every month, and they add one additional SIP amount as a maturity bonus. This means you pay INR 12,000, and they give you INR 13,000 as a maturity amount, which you can then use to buy physical gold or jewelry at the prevailing price at that time.

This implies that when you pay INR 1,000 every month to the jeweler, they purchase gold at the lower price prevailing at that time. At maturity, you receive gold at a higher price. This means you are getting very little gold compared to if you had bought gold directly in the market every month without investing in such a SIP product.

Refer to the table below, which compares direct buying versus investing in a SIP.

• Total Investment: ₹60,000

• Total Gold Acquired: 7.609 grams

• Average Cost per Gram: ₹7,882.63

Jeweler's SIP Scheme Outcome

In a jeweler's SIP scheme:

• Monthly Investment: ₹5,000

• Duration: 12 months

• Total Investment: ₹60,000

• Additional Amount by Jeweler: ₹5,000

• Total Amount at Maturity: ₹65,000

• Gold Price in April 2025: ₹8,950 per gram

• Gold Acquired: ₹65,000 ÷ ₹8,950/g ≈ 7.26 grams

• Additional Gold via Direct Purchase: 7.609 g - 7.26 g = 0.349 g

• Percentage Increase: (0.349 / 7.26) × 100 ≈ 4.81%

📝 Conclusion

By investing ₹5,000 monthly to purchase gold directly, you would have accumulated approximately 7.609 grams over 12 months, compared to 7.26 grams through the jeweler's SIP scheme. This results in an additional 0.349 grams, or about 4.81% more gold, highlighting the benefits of rupee cost averaging in a rising gold market.

Purchasing physical gold in small amounts regularly can be challenging due to high costs and logistical issues. However, digital gold platforms like Gullak have revolutionized this process, allowing you to invest in gold in small quantities and even earn returns by leasing it.

💡 What Is Digital Gold?

Digital gold enables you to buy fractional quantities of 24K gold (as little as 0.1 grams or even Rs. 10) at live market prices. Your purchases are securely stored in SEBI-approved vaults managed by partners like Augmont. Once you've accumulated enough, you can either sell it back or request physical delivery to your home.

Introducing Gold Leasing with Gullak Gold+

Gullak's Gold+ feature allows you to lease your digital gold to verified jewelers, earning additional returns. Here's how it works:

• Returns: Earn an extra 4–5% annually in gold grams on top of the typical 11% CAGR of gold, potentially totaling up to 16% returns.

• Interest Payout: Interest is calculated daily and credited monthly in gold grams.

• Flexibility: No lock-in period; you can withdraw your gold or cash anytime.

Is It Safe?

Yes. Gullak partners with Augmont, a SEBI-approved vault manager, ensuring your gold is securely stored. Leased gold is provided to verified jewelers with 100% collateral, safeguarding your investment.

Getting Started with Gullak

1. Download the Gullak App: Available on Android and iOS. https://gullakapp.page.link/VTZsrcGgGN6yehZx9

2. Create an Account: Sign up and complete KYC verification.

3. Start Investing: Buy digital gold in small amounts, set up SIPs, or use the "Save on Spends" feature.

4. Lease Your Gold: Opt into Gold+ to start earning additional returns.

By leveraging digital gold platforms like Gullak, you can overcome the barriers of traditional gold investment, making it more accessible and potentially more rewarding.