Gold SIP Guide — Monthly Gold Investment Plan
Systematic gold savings made simple — save monthly, buy jewellery at maturity with bonus benefits
Gold has been the preferred savings instrument for Indian families for generations. But buying gold jewellery in one lump sum can strain your finances, especially with gold prices touching record highs in 2026. A Gold SIP (Systematic Investment Plan) at a jewellery store solves this problem by letting you save a fixed amount every month and convert your accumulated savings into jewellery at the end of the plan.
Londe Jewellers offers a Monthly Gold Savings Plan that makes gold ownership accessible, disciplined, and rewarding. Whether you are saving for a wedding, a festival purchase, or simply building wealth, this guide explains everything about how Gold SIP works and why it might be the smartest way to buy gold.
How Does Gold SIP Work at a Jewellery Store?
A Gold SIP at a jeweller like Londe Jewellers works on a simple principle: you deposit a fixed monthly amount over a set period (typically 11 months). At the end of the plan, the jeweller adds a bonus amount (often equivalent to one month's instalment). You can then use your total accumulated amount — deposits plus bonus — to purchase gold jewellery from the store.
Step-by-Step Process
- Enrol: Choose a monthly instalment amount (e.g., Rs. 1,000, Rs. 2,000, Rs. 5,000, Rs. 10,000 or more) and register for the plan at any Londe Jewellers store.
- Pay monthly: Deposit your fixed instalment every month for 11 consecutive months. Payments can be made in-store or through supported digital methods.
- Receive bonus: After completing 11 instalments, Londe Jewellers adds a bonus amount equivalent to one month's instalment to your account.
- Purchase jewellery: Use your total accumulated amount (11 instalments + 1 bonus = 12 months' worth) to buy any gold jewellery, diamond jewellery, or silver jewellery from our collection.
Gold SIP Calculation Example
Let us see how a Gold SIP at Londe Jewellers works with different monthly amounts:
| Monthly Instalment | Duration | Your Total Deposits | Bonus (1 Month) | Total Available for Purchase | Effective Return |
|---|---|---|---|---|---|
| Rs. 1,000 | 11 months | Rs. 11,000 | Rs. 1,000 | Rs. 12,000 | ~9.1% bonus |
| Rs. 2,000 | 11 months | Rs. 22,000 | Rs. 2,000 | Rs. 24,000 | ~9.1% bonus |
| Rs. 5,000 | 11 months | Rs. 55,000 | Rs. 5,000 | Rs. 60,000 | ~9.1% bonus |
| Rs. 10,000 | 11 months | Rs. 1,10,000 | Rs. 10,000 | Rs. 1,20,000 | ~9.1% bonus |
| Rs. 20,000 | 11 months | Rs. 2,20,000 | Rs. 20,000 | Rs. 2,40,000 | ~9.1% bonus |
Note: The bonus effectively gives you a 9.1% return on your deposits (1/11), which is better than most savings accounts. Additionally, if gold prices rise during the plan period, you benefit from the gold price appreciation when you make your purchase at the current rate. Actual terms may vary — please confirm at the store.
Gold SIP vs Other Gold Investment Options
There are many ways to invest in gold in India. Here is how a jeweller Gold SIP compares to other popular options:
| Parameter | Gold SIP (Jeweller) | Gold ETF | Physical Gold (Coins/Bars) | Sovereign Gold Bond (SGB) |
|---|---|---|---|---|
| Minimum Investment | Rs. 500-1,000/month | ~Rs. 500 (1 unit) | Price of 1g gold (~Rs. 8,500+) | 1 gram (Rs. 8,500+) |
| Returns | Bonus (~9%) + gold appreciation | Gold price appreciation | Gold price appreciation | 2.5% interest + gold appreciation |
| Physical Gold Received | Yes — jewellery of your choice | No (paper/digital) | Yes — coins/bars | No (digital, redeemed in cash) |
| Making Charges | Applicable on jewellery | Expense ratio (~0.5-1%) | Small premium over spot price | None |
| Lock-in Period | 11 months | None | None | 5 years (8-year maturity) |
| Liquidity | Converted to jewellery at maturity | High (sell anytime) | High (sell to any jeweller) | Moderate (after 5th year on exchange) |
| Storage | No storage needed until purchase | No storage needed (digital) | Locker/safe required | No storage needed (digital) |
| Tax on Gains | 3% GST on jewellery purchase | 12.5% LTCG after 1 year | 12.5% LTCG after 2 years | Tax-free on maturity |
| Best For | Those planning jewellery purchase | Short-term gold exposure | Those wanting physical metal | Long-term investors (5-8 years) |
Benefits of Gold SIP at Londe Jewellers
- Disciplined savings: A fixed monthly commitment ensures you consistently save towards your gold purchase without the temptation to spend elsewhere.
- Free bonus: The bonus instalment from the jeweller is essentially free money — an immediate return of approximately 9.1% on your deposits.
- Budget-friendly: Start with amounts as low as Rs. 1,000 per month. There is no need to arrange a large lump sum for your jewellery purchase.
- Flexibility in purchase: At maturity, you can choose any jewellery from the entire Londe Jewellers collection — gold, diamond, or silver.
- No market timing: You do not need to worry about when to buy gold. The SIP approach spreads your investment over time.
- Wedding planning: Gold SIP is ideal for families planning weddings. Start a plan 11 months before the wedding and have your jewellery budget ready with a bonus.
- Festival purchases: Time your plan to mature before Diwali, Akshaya Tritiya, or Dhanteras for festival jewellery shopping.
Who Should Opt for Gold SIP?
Gold SIP at a jeweller is ideal for:
- Families planning a wedding jewellery purchase in the next year
- Salaried individuals who want to save a fixed amount monthly towards gold
- Parents planning to gift jewellery for milestones like birthdays, graduations, or engagements
- Anyone who wants to avoid the burden of a large one-time jewellery expense
- Festival shoppers who want to budget in advance for Diwali or Akshaya Tritiya purchases
Ready to start? Visit any Londe Jewellers store in Nagpur to enrol in our Monthly Gold Savings Plan today. Check the current gold rate to understand the value of your future purchase.