By Elda Christy

Nirmala Fernandes from Goa, has been saving up for her daughter’s wedding ever since she was 15. Over a span of 10 years Nirmala has collected gold that's now worth around Rs 60,000.

This she did by buying small items of jewellery on occasions, birthdays and at Christmas. Her collection boasts of four gold bangles and other trinkets like pendants, chains and rings, and she swears by her neighbourhood goldsmith to get all her jewellery made. She tells us, “The catholic wedding ceremony is simple. So, this collection should suffice for D-day.”

But some Indian weddings are more elaborate. Kavita Shetty’s daughter got married a few weeks back. Kavita says, “It’s important to buy huge quantities of gold in our caste. We have to meet very specific demands of adorning the bride with especially designed armlets and waistbands, gold necklaces and  gold ornaments for the hair."

Kavita began saving for the occasion five years back by regularly buying small quantities of jewellery. The family spent a whopping Rs 2 lakhs just on gold jewellery.

Sounds familiar? Yes, we Indians are known to be the biggest consumers of gold. So, given that buying a lot of gold is inevitable for weddings, Moneycontrol.com tells you how to save up for that big purchase.

To buy or not to buy
First, did Nirmala do the right thing by buying small items of jewellery? Probably not, say expert. When you buy gold jewellery, out of the total price you pay, up to 30 per cent goes towards the making costs.

So, if you buy a ring worth Rs 5,000, only Rs 3,500 is the actual value of the gold. The rest goes to the goldsmith for his work. When you sell that ring later on, you can expect a maximum of Rs 3,500. When you sell, expect the buyer to charge you again for melting.

And in all probability because of the span of 20 to 25 years, the jewellery that you bought will have gone out of style, and your daughter will demand something that's more 'in' today. 

So, what’s the next best thing? We outline smart options.

1. Buy gold coins and bars
You can buy them from prominent jewellers or banks. Ensure that you take an Assay Certification that qualifies the purity of the coin or bar. Certified Financial Planners advice that you opt for a jeweller because unlike banks, when the time comes, the jeweller will buy back your gold.

2. Gold Exchange Traded Funds (GETF)
“Now that we have GETFs in India, why not take full advantage of it,” says investment advisor Sanjay Matai.