THE ECONOMIC TIMES 18 MAR, 2013, 03.

34PM IST, SANKET DHANORKAR,ET BUREAU

Unlock the value of your gold jewellery

It is virtually impossible to keep Indians away from gold, jewellery being the preferred mode of acquisition. While the sentimental and safety aspects of this mode of investment cannot be denied, neither can one overlook the gains during uncertain times as in the recent past. However, the jewellery in your safe or in a bank locker is unlikely to earn you any interest unlike other investments.

How about putting this surplus gold to productive use? You could do so by opting for a gold deposit scheme with a bank or a jeweller. However, before you jump at this opportunity, here are the features you should consider. How it works Currently, the State Bank of India BSE -2.21 % is the only bank offering a gold deposit scheme, and it is regulated by the RBI. Some jewellers also offer similar schemes, but since they are not regulated by any entity, they are not trustworthy. Such a scheme requires you to deposit the gold item with the bank for a period of your choice. At the end of this term, you can either redeem the deposit in the form of gold bars of the same weight as the original deposit, or take equivalent cash. During the tenure of deposit, you will be paid a modest interest on gold. You can approach a designated branch of the SBI BSE -2.21 % (currently around 50 branches) and present your gold jewellery. The deposit can be in the form of gold coins, bars, as well as jewellery. However, the minimum weight for the deposit should be 500 g. The bank will ask you for an identity and address proof, along with a photograph and an inventory. The items will be weighed in your presence, after which the bank will issue a provisional receipt listing the weight of the items deposited. However, you will not get a deposit certificate immediately as the piece will first be sent to the assayer for checking the purity of gold. After the assessment is complete, you will be handed the gold deposit certificate, which indicates the actual weight of gold arrived at by the assayer, the tenure of your deposit, as well as the interest rate offered on it.