Gold Accumulation Plan

Product

Introduction:

India’s love for gold & keep it in physical form is unparalleled and can be judged by the very fact that inspite of massive private hoarding of about 20 odd thousand tons of gold, our govt. was able to garner only 42 tonnes of gold in its SCHEME introduced in 1993 as “GOLD BOND SCHEME 1993” The repayment of which was made in fold in the year 1998. The country imports about 750 tonnes of gold every year but people prefer to keep it in physical form (either jewelry or bullion) in their own vaults. Rising gold Prices is a challenge for the general public. Historically gold is on a rising spree in the past 15 years. (See Exhibit-1)

This chart contains the average price for gold for per year since 1983 – present. The prices indicated are for 10 grams of gold and prices are in Indian Rupees.  (Source: https://www.bankbazaar.com/gold-rate/gold-rate-trend-in-india.html)                                      (Exhibit No:1)

 

Year

Price

Year

Price

Year

Price

Year

Price

Year

Price

1983

Rs. 1,800

1990

Rs. 3,200

1997

Rs. 4,725

2004

Rs. 5,850

2012

Rs. 31,050

1984

Rs. 1,970

1991

Rs. 3,466

1998

Rs. 4,045

2005

Rs. 7,000

2013

Rs. 29,600

1985

Rs. 2,130

1992

Rs. 4,334

1999

Rs. 4,234

2006

Rs. 8,400

2014

Rs.28,006

1986

Rs. 2,140

1993

Rs. 4,140

2000

Rs. 4,400

2007

Rs. 10,800

2015

Rs.26,343

1987

Rs. 2,570

1994

Rs. 4,598

2001

Rs. 4,300

2008

Rs. 12,500

2016

Rs.28,623

1988

Rs. 3,130

1995

Rs. 4,680

2002

Rs. 4,990

2009

Rs. 14,500

2017

Rs.29,667

1989

Rs. 3,140

1996

Rs. 5,160

2003

Rs. 5,600

2010

Rs. 18,500

2018

Rs.31,438

 

 

 

 

 

 

 

 

 

 

 

 

India which is one of the leading gold consumer, here people always prefer gold buying for their diverse requirements. In the Indian marriages gold command the biggest spending share in the entire budget. People also buy gold for investment and on religious occasions as they consider it a symbol of Power and Prosperity. Therefore, buying Gold is the absolute preference of every Indian household. We have two options:

1.      either to buy it when we need it or

2.      accumulate it in a systematic manner.

Buying gold, in bulk when we need it, in the rising prices scenario is a big challenge.  Therefore, there is a need for the disciplined gold accumulation in the Indian household. we come up with the solution to get it accumulated in the smaller quantities in a systematic manner.     Company Introduction: Started in 2009, AVL is working as Bullion trader in the market supplying gold to the wholesale customers at Amritsar.

 

B.      Gold Accumulation Plan:

a.      How it works:

                                                     i.     Customer needs to open an account with the company. After realization of the amount the account shall be active.

                                                   ii.     A welcome letter shall be issued. (Format of Welcome Letter) and also customer shall be added in to whatsapp group.

                                                  iii.     Money is collected from the customers on 19th of every month. Reminder shall be sent 2/3 days before the payment.

                                                  iv.     Gold rate is declared on the 20th of Every Month and the same shall be communicated through whatsapp.

                                                   v.  The customer shall be allocated the requisite units in relation to their amount. For e.g. suppose the customer has subscribed with                 Rs. 2000 per month and gold rate declared Rs. 3500 per gram, the units in that particular allotted shall be 0.571 mg (Rs. 2000/                         3500). See the Attachment. The statement shall be delivered on email in the next 10 days.

                                                  vi.     Delivery: Delivery shall be in the Form of coins 24 CT i.e. 995 fitness. Coins shall be delivered in the specifications: 1gm, 2gm,                      5gm, 8gm, 10gm. For e.g. in case the customer has accumulated 6.280 gms gold (0.571X 11). We shall call the customer and                       ask him whether he will prefer 6 Gm delivery or 7 gms delivery. Suppose he prefer 6 gms then we shall refund his amount in                           respect of 280 mg. at the last allocated price, (subject to realization of the charges), amounting Rs. 980 (assuming last allocated                      price is  3500 per gm.). Suppose he prefer 7 gm gold then we shall deduct balance 1 gm price i.e. Rs. 3500 from his account.                       After     finalization  of quantity the same shall be dispatched through Indian speed post insured parcel. The information                                   shall   be shared   with the customer backed by continuous follow ups till the time customer received its parcel. When the                               customer   receives the parcel same shall be confirmed through our telephonic verification.  The Gold coin shall be accompanied                     by GST paid   Bill and ledger containing zero balance.

                                                 vii.     Charges: The rate shall be Exclusive of GST, Making charges Rs. 30 Per Gram and Delivery charges which is minimum of Rs.                      300 per insured parcel.

 

Benefits of GAP

SYSTEMATIC GOLD ACCUMULATION

A disciplined accumulation methodology under which you accumulate gold grams by making small but regular subscription.

GOAL SETTING APPROACH

Suppose you set the Goal of accumulating 200 gms gold in next 10 years you can split it by setting a yearly  target of 20 gms accumulation through our GAP.

AFFORDABLE

Low entry level with a minimum payment of Rs. 1000/-and in multiples of Rs. 100/-thereafter

RUPEE COST AVERAGING

All subscriptions made will be split into 11 monthly purchases thus reducing the risk of timing the markets. More Gold Grams will be credited during falling markets and less during rising markets.

ASSURED PURITY

24 Karat Gold of 995 fineness credited to the customer’s account up to 3 decimals and shall be delivered in form of Coins.

PLANNING FOR SPECIAL EVENTS

Plan for a large Gold purchase in the future for special events like daughter’s wedding, your wedding anniversary or any other joyous occasions like Dewali or Dhanteras by making regular subscriptions.

HEDGE AGAINST INFLATION

Gold is considered the natural hedge against the inflation . As past data shows its value grows with the passage of time making valuable contribution to your portfolio.

 

Why Gold Plan is better?

  • Existing plans offer jewelry not pure Gold 24CT. Normally jewelry includes high making charges and erodes around 30% of its value.
  • Rupee Cost Averaging: Every month the customer shall buy from us at the prevailing market rate. For. E.g in April 2019 the rate was 3300 per gm the customer ( Assuming 5000 PM)  got 1.515 gm ( 5000/3300) in May the Rate was 3280  , the customer got 1.524 gms (5000/3280), in June the Rate was 3500 per gm, the customer got 1.429 gms.( 5000/3500). If you analyze the customer shall get higher units when the rate is lower and vice verca.  In other cases, the rate shall be determined at the time of delivery denying the customer the benefit of RCA explained above.
  • Jewelry becomes old fashioned whereas gold gives you choice to convert it in jewelry at the time of its requirement.