Gold Coin Purchase with EMI in India

Gold Coin Purchase with EMI in India: Bad Deal

Several jewellers and banks are offering gold coins at 3-6 months of EMI this Diwali to the customers. And many people are proudly buying gold coins and bars on EMI and say that they are investing.

Here are the two online sites. You can check it.

01) Shopping.Indiatimes – Gold Coins on EMI

02) Shopping.Rediff – Gold Coins on EMI

You can see that jewellers are selling gold coins of 5 grams, 10 grams and other denominations at 3-6 months of EMI.

Buying Gold coins/bars/jewellery on loan is a new trend in India. And financially unaware people say that they are investing in gold.

But well, these people don’t know that they are basically violating the basic principle of investing and that is – you should never invest with borrowed money.

Well, Yes. An Individual should never borrow money to invest. Of course, Businesses borrow lots of money and invest it to grow. But well, they are businesses and lots of people are working under that business to generate huge profits and to pay off those debts.

But as an Individual, its the Fool’s plan to borrow money to buy a gold.  So don’t do it to buy a gold. Always buy a gold only if you have surplus money to invest in gold.