Hi, Actually my hubby started a business by getting a loan out of my jewels.Now he has got the money back. But ATM he doesn't want to settle my gold loan. Instead he wants to buy new jewels or gold coin out of that money pawn them and recover my jewels with that money. Later he wanted to pay for the gold loan little by little and recover the new jewels. I told him just to recover my jewels instead of taking risk on buying new jewels.but he says. In future we cannot think of buying gold. So ATM we hv money with the help of that we can recover ur jewels same time can buy new ones as well.I m confused with his idea. Can anyone advise on this. My jewels pawned for Rs.1.5 lk. But if we wanted to buy new ones we hv to invest at least 1.6- 1.7lk. Then only we can get loan for rs. 1.5 lk and recover my jewels from the bank. Please advice
I do not have prior experience dear Rsrisha..But looks complicated thinkingsmiley..but one thing I can say for sure the gold price is not going to double in few years..So you need not worry that, in future the price may go up..Even if you are going to pawn the gold coins..You have to pay interest for that till you remit back the gold with full amount..I don't see a big smart investment on this...This is just my opinion
As per his plan, you will get back your old jewels. So why are you worrying so much? He is a business man and he knows how to roll the money and get best out of it. If your jewels are safe, just stop worrying.
Personally I dont like the idea. You gave the money for specific purpose. Now that purpose is accomplished so he should get your jewels back. That should be priority. Then from his business, he will again get money as profit just like he did this time and he can invest that for gold or whatever as he wishes. But he should not delay your jewles. Anything can happen. Gold is very volatile market. If it can go up it can go down also. OP, it just doesnt seem like his priority is to recover your jewels but imo, it should be.
No much knowledge on interest calculations. But my suggestion is to first take back your old jewels. I am sure you must be paying an interest of at least 5-8%. Due to this you will be not be earning much profit as gold price may not increase so much based on current market. Ask him to recover your loan first and with the rest 20-30k gift yourself with a new necklace just as a token of thanks for giving the jewels.
@OP something is off. Get ur jewels back. Here is why...the only way this convoluted scheme would make financial sense would be if he were to invest the 1.5 lk such that returns on it would be greater than the interest u pay on the loan . Re-Investing in gold which is essentially in a bear market to get ur jewels out of an already existing loan makes no financial sense.
With the money he has now, ask him to take your gold jewels back. Then, whenever he gets money as profit, even it is not too big an amount, you can make FDs or recurring deposits. When your investments grow to a sizeable amount, you can buy gold coins or invest in other area like mutual funds, stocks, real estate etc.
