Section I: Income Tax and Your Investments

• Ques: Investment in Gold and Jewellery
• Ans: Key points:
  • Gold has been more stable investment option as compared to stock, mutual fund, real estate.
  • This is almost liquid asset as one can fetch cash anywhere in the world. IT IS A GLOBAL ASSET.
  • It works as a tool to beat inflation.
  • One should invest around 5% of its investment portfolio in gold.
  • BeES - nowadays one can invest in gold without physically holding gold through Gold BeES. There is no issue of security, liquidity, storage and purity as these are bought and sold on paper only like MF/Shares on National Stock Exchange .Each unit represent 1 gram of standard gold.
  • Gold should be kept in form of coins or bars instead of gold jewellery as the cost of making charge is high.