Malabar Gold Scheme Review

By Team Gullak

Nov 13, 2024

4 min read

Gold, not only is a precious asset in India, but also is a symbol of prosperity and culture in the Indian economy. That being said, with the rising gold prices, it becomes difficult for households to buy gold in large quantities at a go. This is where gold schemes come into the picture, offering an easier & more convenient manner of saving in gold for future purchases.

One such gold scheme that is widely known among Indians is the Malabar gold scheme. In this article, we will understand how the scheme works, pros & cons and compare it with other gold schemes like Gullak Gold+.

What is the Malabar Gold Scheme?

The Malabar gold scheme is a gold saving scheme that allows you at periodic intervals to buy gold with the accumulated amount at the end of the tenure. The plan tenure generally lasts for 11-12 months. At the end of the tenure, you can buy gold jewellery from the Malabar Jewellery stores.

Scheme Duration- 11 months

Minimum amount- ₹1,000

Payment terms- Monthly advances

Benefits- Discounts on making charge and wastage charge when claiming the jewellery

Lock-in period- 11 months

Withdraw options- Jewellery

Gullak Gold+: An alternative gold scheme

If you’re looking to make the most out of your gold saving scheme, Gullak Gold+ might be a perfect fit for you. Here’s how Gullak Gold+ works:

All over India, if you were to buy gold your returns would be equivalent to the rate at which gold price increases. However, on Gullak Gold+, you get an increase of gold quantity as well, on top of this. Basically, your gold quantity increases by 5% every year with Gold+. If you invest 100 gms today, it will become 105 gms in 1 year & 148 gms in 8 years, giving you a 50% gold quantity increase.

Scheme Duration- None

Minimum amount- ₹150/day

Payment terms- daily/weekly/monthly SIPs or one-time investments

Benefits- Grow your gold quantity by 5%pa

Lock-in period- None

Withdraw options- Cash or gold coin or redeem jewellery at Gullak’s partner stores like Caratlane by Tanishq and claim flat 5% off on gold price.

Comparison- Malabar Gold Scheme vs Gullak Gold+

Now that we have a deeper understanding of both, malabar gold saving scheme and Gullak Gold+, let us do a side-by-side comparison of both the schemes:

Table: Gullak Gold+ vs malabar gold scheme plan

In the above table we can see that Gullak Gold+ stands out in 3 domains:

Extra 5% gold every year- Growing your gold quantity isn’t possible with any other gold scheme apart from Gullak Gold+.

Flexibility- You can withdraw your investments from Gold+ anytime you want. Your investments are withdrawable as cash or gold coins or jewellery.

One key difference between the 2 schemes is that with Gullak Gold+, you can set up SIPs that invest your money in gold at your given frequency. On the other hand, with the Malabar Gold Scheme, your money gets invested only after the scheme tenure is over, leading to you missing out on almost 1 year’s worth of gold returns & buying gold at a higher future price.

The Bottom Line

Both, Malabar Gold scheme and Gullak Gold+ are splendid gold saving schemes. When buying gold you can choose any of the above schemes that tailor to your gold needs. However, the extra 5% gold pa is something that is unique to Gullak & can immensely benefit you. That being said, investors must do their due diligence before choosing any gold scheme.