Many people can buy gold jewelry in this way even if they cannot afford to buy gold jewelry.
Gold is one of the best investment options. So many people buy gold. Gold jewelery is even given as a wedding gift. But when the price of gold rises, how to buy gold? Nishit Nanda, Executive Director of Khimji Jewels and Chief Executive Officer of Youlry.com (Nishit Nanda) said some ways in this context.
According to him, co-ownership or co-ownership of that jewelry can be a way to buy jewelry when the price of gold increases. It works much like a mutual fund or a real-estate investment trust, says Nishit. In an interview to Moneycontrol, he said that various jewelery shops are facilitating co-ownership schemes. Apart from this, after a few years, buyers are also given the facility to exchange the jewelry. Some parts of that interview are highlighted.
What is the interest among customers in co-ownership? Yes of course! Ever since gold jewelry has become a luxury, several consumers have shown interest in the co-ownership model. Many people can buy gold jewelry in this way even if they cannot afford to buy gold jewelry. And through this model, like-minded gold jewelry lovers can create a community. We are also thinking of opening such a segment.
What is the minimum investment to buy jewelery through co-ownership model?
We are still working on models applicable to our precious jewellery. I have not set any upper limit for it. But every buyer of a category has to spend at least 5 lakh rupees. And that may be the minimum investment.
How many people can co-own a particular piece of jewelry? In fact, precious gold jewelery is mainly kept for investment purposes. They are not used that way. So one can buy and hold a share in precious jewelry without investing the whole. And a total of 3 people in each category will be allowed to buy one piece of jewelry by combining their own money. And if you want to use that jewelry, sometimes it can change hands between three buyers. If a buyer wants to sell his shares, the buyback option will also be kept for him.
Can co-owners hold on to the jewelry for life? Or will there be a fixed time frame for this scheme? At the moment we are considering various options. Let’s take the 12 month scheme. In this case, every buyer will get the opportunity to keep the jewelry for a few weeks. They will get some money back by returning it after 12 months. And so that there is no trouble in this department, friends or relatives should be chosen as co-owners.
If there are three owners of a jewelry, more challenges will come! It is absolutely true. There is no problem if you just own the jewelry yourself. But in case of co-ownership the problem increases. It is simple in contract but not in reality. Let’s say it’s the wedding season. If three owners get married on the same day, then there may be a problem about who will take it. Apart from this, I have seen some other problems in bringing the scheme and am trying to solve them.
Waiting for a rule on co-ownership of jewelry? Co-ownership is a contractual agreement between one person. We are talking to our legal team. I am trying to ensure that there is no problem in this scheme.