10% rule, 100% peace: Why too much gold could cost you more

Produced by: Mohsin Shaikh

Gold Hoard Nation

Indian households own 25,000 tonnes of gold—more than the top 10 central banks combined. It's not just bling—it’s the nation’s quiet financial muscle.

950 Gram Rule

Legally, a family of four can keep up to 950 grams at home without inviting tax scrutiny—provided they can’t prove how they got it. Beyond that? Keep receipts, or expect questions.

10% or Bust

Experts say: cap your gold exposure at 10% of your investments. More than that, and your portfolio starts glittering at the cost of growth.

Inflation’s Shield

In times of high inflation or a rupee wobble, gold stands firm. It may not pay dividends, but it protects purchasing power like few other assets.

Tradition vs. Tax

Gold is sacred at Indian weddings—but tax officers don’t care about customs. Without documentation, even heirlooms can be flagged.

Hidden Risk

Physical gold brings thieves and volatility. You don’t just store wealth—you guard it. One bad break-in, and your emergency fund disappears.

Digital Gold Rising

Jewellery’s out, ETFs are in. Younger investors are trading in bangles for sovereign bonds, keeping the sentiment but skipping the lockers.

13% Surprise

A 20-year gold SIP would have beaten the NIFTY 50. The shiny metal yielded a 13.19% return vs. NIFTY’s 11.9%—though past glitter isn’t future gold.

Golden Middle Path

Gold is tradition, hedge, and backup rolled into one. Keep it, but wisely. Beyond 10%, it stops protecting and starts limiting.