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Indian gold retailers see surge in consumers opting for monthly saving schemes

With the gold-price rally showing no signs of abating, Indian jewellery retailers are seeing a spurt in consumer response to monthly savings schemes that seek to spread the strain of gold buying for use or as an investment option.

Most savings plans require members to deposit a set amount, from INR500 (USD10) to several thousands, every month with the retailer. The schemes usually run for a specific period ranging from 12 to 36 months, at the end of which the consumer can redeem the money plus a bonus or some interest for jewellery. With gold prices running high, such systematic savings schemes help consumers put away small sums regularly, rather than having to make large one-time investments.