Social media is full of claims that you can earn interest on gold jewellery. But what’s the reality? Let’s break down the Gold Monetisation Scheme (GMS).

Under Gold Monetisation Scheme, you can deposit jewellery, coins, or bars in banks. The gold is melted into 995 fineness bars, and its weight is credited to your gold deposit account.

What Happens to Your Gold?

Your original jewellery is not returned. Instead, you receive gold bars or their equivalent value in cash at maturity. If your jewellery has emotional value, think twice before opting in.

Returns and Lock-in Period

You earn interest on your gold, and capital gains tax is exempt. However, there’s a lock-in period of 15-17 years, making it a long-term commitment.

Should You Opt for It?

Choose this scheme if:

• You have idle gold. 
• You want interest earnings. 
• You’re okay with not getting jewellery back. 
• You don’t need funds in the short term.

Conclusion

While GMS offers returns and tax benefits, it requires long-term commitment. Carefully weigh the pros and cons before investing.

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