In a glittering move, gold futures in India soared to record highs on Monday, mirroring the glimmering gains witnessed in global markets. This surge has tightened the demand for the precious metal in the country, which stands as the second-largest consumer of gold worldwide, according to jewellery dealers.
The domestic gold futures prices climbed to an unprecedented 69,487 Indian rupees (approximately $834.07) per 10 grams, marking a staggering 10% increase since the start of 2024.
Gold jewellery, a timeless investment deeply rooted in Indian culture and traditions, has long been sought after by many. However, the allure of these glittering adornments often comes with a hefty price tag, making it challenging for some to indulge in this luxury upfront. This is where credit cards can prove to be a golden opportunity.
Using a Credit Card for Gold Purchases
Buying gold jewellery with a credit card is no different from any other purchase made using this payment method. Individuals can visit jewellery stores or browse online platforms and select the desired piece. At the billing counter, simply provide your credit card details to complete the transaction. If your credit card has a sufficient credit limit, the purchase will be approved seamlessly.
Many jewellery stores also offer the enticing option of buying gold on EMI (Equated Monthly Installments) with a credit card. This allows you to spread the cost over a series of manageable monthly payments, making the purchase more accessible.
Factors to Consider When Buying Gold with a Credit Card
While the convenience of credit card purchases is undeniable, it is crucial to consider several factors before indulging in this golden opportunity:
- Interest Rate: Credit cards typically charge high interest rates on unpaid balances. Before making a purchase, review the interest rate on your credit card and ensure you can afford to pay back the amount, including the accrued interest.
- Credit Limit: Ensure your credit card has a sufficient credit limit to cover the cost of the desired jewellery.
- Repayment Tenure: If you plan to buy gold jewellery on EMI, check the repayment tenure offered by your credit card provider. The tenure can range from a few months to several years.
- Processing Fees: Some credit card providers may charge a processing fee for EMI transactions, which can increase the overall cost of your purchase.
Striking the Right Balance
Buying gold jewellery with a credit card is a viable option, offering convenience for those who do not wish to pay the entire amount upfront. However, it is crucial to carefully consider the interest rate, repayment tenure, and processing fees before making a purchase on EMI with your credit card. Remember, credit card debts can accumulate rapidly if not paid on time, so ensure you have a solid financial plan in place to pay back your dues promptly.
By weighing the pros and cons and making an informed decision, you can potentially turn your credit card into a golden opportunity to earn reward points while indulging in the timeless allure of gold jewellery.
Disclaimer: (This information is provided solely for informational purposes. It is important to note that investing in the market or a business idea involves market risks. Before investing money as an investor/ owner/ partner, always consult an expert. DNP News Network Private Limited never advises to invest money on stocks or any specific business idea. We will not be liable for any financial losses.)