How does Gold Loan work?

[>take]

I was told that instead of putting the gold in locker, rather take a gold loan from bank and invest in FD wherein the interest from FD is more than Gold loan interest. Thus both gold would be safe and you would earn money from this.

Your comments on this strategy?

Thanks
Sunil kumar

As the interest rate you are getting is minimum 12% and current Fixed Deposit rate is 9.25% to 10%, so your will not earn any money but loose 2.5 -3%.