About Physical Gold Investment
Loanpao’s physical gold investment options include jewelry, coins, and bars, offering stability and long-term value preservation. Gold is a safe-haven asset in India, with historical appreciation of 8–12% p.a., ideal for hedging against inflation and economic uncertainty.
Why Choose Physical Gold?
- Appreciation: Historical 8–12% annual growth in India
- Inflation Hedge: Retains value during economic volatility
- Cultural Value: High demand for jewelry during festivals, weddings
- Liquidity: Easily sold to jewelers or banks (with minor discounts)
- Portfolio Diversification: Low correlation with equities
- No Maintenance: Minimal upkeep compared to real estate
- Accessibility: Starts at ₹10,000 (e.g., 2–3 grams of gold)
Are You Eligible?
| Criteria | Requirement |
|---|---|
| Applicant Type | Indian resident (individuals, HUFs, NRIs) |
| Age | 18+ |
| KYC Compliance | Mandatory for purchases above ₹2 lakh |
| Investment | Minimum ₹10,000 (varies by gold form) |
What Documents Do You Need?
- KYC: Aadhaar, PAN, or passport (for purchases above ₹2 lakh)
- Address Proof: Utility bill or rental agreement
- Purchase Receipt: Invoice from jeweler or bank
- Bank Details: For high-value transactions
- Locker Agreement: Optional, if using bank storage
Indicative Returns
| Investment (₹) | Tenure | Appreciation Rate | Future Value (₹) |
|---|---|---|---|
| 1,00,000 | 10 years | 8% p.a. | ~2,15,900 |
| 1,00,000 | 10 years | 12% p.a. | ~3,10,600 |
| 5,00,000 | 15 years | 10% p.a. | ~20,87,300 |
Extra Charges:
- Making Charges: 5–20% for jewelry
- Storage Costs: ₹1,000–₹5,000/year for bank lockers
- GST: 3% on gold purchases
- Selling Discount: 2–5% below market price when sold
Note: Returns are illustrative, based on historical gold price trends (8–12% p.a.). Actual returns depend on global prices, demand, and costs.
Calculate Your Gold Returns
Enter details to see estimated returns.
How to Invest in Physical Gold
- Visit loanpao.in or trusted jewelers/banks (e.g., Tanishq, SBI).
- Choose gold form: jewelry, coins (8–50g), or bars (50g–1kg).
- Complete KYC for purchases above ₹2 lakh.
- Verify gold purity (22K/24K) and hallmark certification.
- Pay via bank account for transparency.
- Store securely at home or in a bank locker.
- Sell to jewelers or banks when needed, retaining invoices.
Common Questions About Physical Gold
What is physical gold investment?
Buying gold in tangible forms (jewelry, coins, bars) for appreciation and wealth preservation.
Are gold returns guaranteed?
No, returns depend on global gold prices and demand, with risks of short-term volatility.
What is the minimum investment?
₹10,000 (e.g., 2–3 grams of 24K gold, based on current prices).
Can NRIs invest in physical gold?
Yes, NRIs can buy physical gold in India via NRE/NRO accounts, subject to customs limits.
What are the tax implications?
LTCG tax at 12.5% after 3 years; GST (3%) and making charges apply on purchase.
What are the risks?
Price volatility, storage theft risks, and costs like making charges or selling discounts.
How to ensure gold purity?
Buy hallmarked gold (BIS-certified) from reputed jewelers or banks.