Satyug Gold, a firm promoted by actress Shilpa Shetty and her husband Raj Kundra, has launched a gold systematic accumulation plan ‘Satyug Mera Gold’, wherein customers can buy gold for ₹50 a day.

The company has tied up with IDBI Trusteeship Services, a joint venture promoted by IDBI Bank, LIC, GIC and Karvy Computershare for processing investor applications. Brinks India would provide the logistics and vault services.

Customers can enrol through the company’s website or visit any of the 450 Karvy branches located in 400 locations across the country. Gold coins of 24k with 999-purity of one gram, 2 grams, 5 grams, 10 grams, 20 grams and 50 grams are available for sale. The monthly instalment can range from one to 5 years.

Raj Kundra, Chief Executive Officer, Satyug Gold, said the company would offer gold at a price lower than the top five leading jewellers and banks, as it sources gold directly from miners in South Africa, Peru and Ghana. The bullion is processed at the company’s refinery at Navi Mumbai.

“We do not charge any processing charges or making charges, except for the tax levied by the Government,” he said.

He added that customers tend to lose out in similar schemes run by jewellers as they have the option only to redeem their savings in the form of gold, as gold jewellery. Once they opt for this facility then a host of fees, including making charges and wastage kicks in, and there is no transparency on how these cost are fixed, he added.

The Satyug revenue model depends on sourcing gold at a lower price, rather than burdening the customers with various charges, said Kundra. The company targets a client base of 200,000 by the end of this fiscal.

Just like any mutual fund, Karvy would send a statement after each instalment is made. Customers have the option of receiving gold coins and bars through courier, and exchanging it for jewellery at seven Satyug outlets, which are being scaled up to 50 by the end of this fiscal.

On the ₹25-crore recovery claim by the Indian Bullion and Jewellers' Association for violating the joint venture agreement, Kundra said the issue has been settled amicably, and there is nothing further to discuss.

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