Gold- An Interest Yielding Asset
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Gold Monetisation Scheme opening doors to earn more for Indian households!
Indian households possess gold as investment asset. Generally, keep their gold ornaments in their lockers and wait for rise in price of gold. But in an economist’s term it’s the ‘opportunity cost’ which means we could earn interest over our stored Gold assets. With the help of Gold Monetisation Scheme, we could earn regular interest (2.25% to 2.50 %- current tentative percentage) rather than waiting for price hike.
Gold Monetisation Scheme allows people to earn regular interest over gold. Basically, it is a saving account for gold, you keep your money in our bank saving account and earn interest over it, GMS also help in same manner in gaining profit over idle gold asset.
A depositor can deposit their gold in any form like jewellery, coins and bars; this stored gold will earn interest on the basis of its weight and also on the rise in metal price. A depositor can get back their gold or money equivalent to the value of deposited gold at the end of tenure (that to be decided on depositing stage).
Banks will be designated for these deposits, and they allow you to deposit for:
Short Term (1-3 years)
Medium Term (5-7 years)
Long Term (12-15 years)
This scheme is more valuable for those who possess gold for investment purpose and it’s a great opportunity for them to get some returns over their idle investments i.e. deriving no benefits as they are always in sleep mode.