Gold Savings Scheme
A monthly instalment plan run by a jeweller, redeemed against jewellery, often with a bonus instalment at the end.
The customer pays a fixed amount monthly for a set term and redeems the total against a purchase, frequently with one instalment added by the jeweller.
Schemes are regulated as deposits, and terms differ on whether the gold rate is fixed at each instalment or applied at redemption.
The bonus is usually offset by making charges at redemption, so the effective benefit is smaller than the headline.
When you are buying
Read whether the rate is locked monthly or at the end, and whether the bonus survives if you buy a piece with high making charges. Those two clauses decide whether the scheme is worth joining.
Gold Rate
The day's price of gold per gram at a stated purity. The base every gold bill is built on.
Making Charges
What you pay for craftsmanship on top of the metal, charged either per gram or as a percentage.
Buyback
What a jeweller will pay to take a piece back. Almost always based on metal content alone.
Digital Gold
Buying gold by value rather than by piece, held in a vault on your behalf and redeemable in coins or jewellery.