Benefits of gold as wedding dowries
Nowadays, the trend has evolved that dinar coins are being used to serve as wedding dowries. Some might commit the dowry in the monetary denomination (Ringgit Malaysia, Singapore Dollar, Brunei Dollar, etc.). Some might commit in the form of dinar gold coins. If the decision is based on the amount of dinar, they can buy the dinar coins even if the big day is scheduled in six months. However, if the commitment is in Ringgit or Dollar, it is ideal to buy the dinar coins when the big day approaches.
The decision to buy dinar coins as the big day approaches is to avoid discrepancies between the agreed and the actual amount paid. It would not be an issue if the gold price appreciates in the meantime, but the problem may arise if the gold price depreciates.
Why gold as wedding dowries?
The main benefit of utilizing gold as dowry is that this ‘wealth’ retains over a long time compared to cash. Though cash is always acceptable, the caveat is that this ‘wealth’ gets utilized almost immediately.
You can survey those who used gold dinar as dowry. Most of them might still have the gold dinar, which indirectly shows that their ‘wealth’ has been protected throughout the years. But if they face a financial crunch, they always have the option to sell the dinar coin to address their immediate needs.
In addition, the gold items that were gifted would have sentimental value that may not be seen in monetary gifts. So, when sentimental value is at stake, the tendency to sell this gold wedding ring may not appear unless they are desperate.
1 dinar per month for wedding preparation
For the young couple who wish to get married, there is a potential to strike two mangoes with a stone. The gold dinar can serve as a dowry while also helping build up a budget.
The typical cost of a wedding ceremony in Malaysia takes up about 30 dinar coins (1 dinar = 4.25 gram). Out of this, 10 dinar coins can be served as wedding dowry, while the remaining 20 dinar coins can be sold to cover the relevant costs.
If the gold price appreciates over the years, the funds will be more than the initial savings. While preparing for the big day, the ‘savings’ gets protected and the potential of capital gain is also very high.
Saving 1 dinar coin per month is not exclusive for the groom because the bride can adopt the same. The target can be achieved earlier by saving gold as a couple. Plus, more arrangements can be made to make your big day memorable.
If you find this article useful, consider sharing this with your friends and family. Let's create awareness about our money because nobody will come forward to help us.
Easy way to start gold savings can be found here: Gold Accumulation Program
Join my Facebook page for free here: FB page
Hope you find it useful.
Your buddy on gold investing,
Naresh G