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Actor Shilpa Shetty-promoted Satyug Gold has come out with a unique gold buying plan -- Satyug Mera Gold Plan -- which is like a systematic investment plan that allows customers to buy gold in small denominations on real time basis.
The plan offers gold coins without any making and other administrative charges. For this, however, customers will have to subscribe to a daily / monthly deposit plan with a minimum amount of Rs 50 / Rs 1,000 respectively.
With IDBI as a trustee, Karvyas, a back-end software facilitator and Brinks Arya as a delivery assurer, the scheme offers an assured buyback of gold coins.The company, however, offers no incentives to customers like other jewellers. The plan works like spot exchange in which a customer will have to deposit a subscription amount.
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"It is like a systematic investment plan (SIP). We buy gold on the same day of deposit and deep in customers' account for IDBI which is a trustee. Even if something goes wrong with the company, customers are safe as we are not using deposited funds as working capital. We are just a service facilitator," said Raj Kundra, chief executive officer of Satyug Gold.
Satyug poles prices from five leading jewellers and five public sectors bank and arrives at an average price, which becomes the buying price for customers. With wafer thin margins, the company is selling gold from its own refinery which imports gold ore from Ghana, South Africa and Peru.
"We got licence to refine 4.5 tonnes of gold ore per month of which we are utilizing a third. On scaling up demand and achieving full operating capacity, we will apply for fresh limit," said Kundra.
The company is banking upon both jewellery and coins for growth in future with plans to open 13 more stores across the country by the year end to take a total tally of 20 stores.
