Now about the KFJ bond of gold scheme
Highlights of the scheme
Min investments – 8 gms.
Min period – 12 months to 60 months.
Price per gm of gold varies with period of investing. Todays rate for 1 gm of gold for 12 month bond period is 2554 and for 60 months it is 1799.
You can terminate the scheme earlier than the lock in period. However the price would be different from the what you paid.
Let us say you pay 1799 per gram for a 5 year bond and terminate after 2 years. After 2 years if the price of gold is 3000, you will have to pay the price of 3000. However if you stay invested you can get the at the committed rate of 1799.
You can get in jewellery, coins or cash
IF jewellery, wastage and making charges will be as applicable and if you want cash at the end of the term, you will get at a discount of 4% ie. you will get only 96% in cash.
If in the event the gold prices were to come down, you dont have a choice. Will it come down??? Will it go UP???
What goes up has to come down. Also there is no credit rating on companies like this.
THere is no balance sheet available. We do not know what are the assets and liabilities of this company.
Assuming investors buy 100 kg of gold in this bond scheme and 1 lac grams and if the gold prices were to go to 5000 per gm, will KFJ be in a position to return gold worth, 50 crore to the investors. Will there balance sheet permit.
Think it over.
There is No such thing as free lunch.