Investment in Jewellery and Ornaments

Gold is not kept generally in the shape of bullion but in the shape of ornaments. By reshaping, the weight and value thereof generally gets reduced. The bullion and ornaments are also subject to wealth-tax.

Silver is generally kept in the shape of bars, utensils and coins. In bars it remains in tact and there is no loss of weight or question of an impurity like in case of ornaments. Holding silver or gold is however risky because of possibility of theft, decoity, etc. As far as liquidity is concerned jewellery can be sold at any time anywhere in the world.

Features of investment in jewellery are as under :

1. Duration

No time limit for investment.

2. Who can invest

Any person can invest.

3. Amount of investment

Generally high depending upon the quantity purchased.

4. Liquidity

Jewellery can be sold at any time anywhere in the world.

5. Investment method

One can invest in the gold/silver in raw form or by converting them into jewellery. In case of jewellery, the sale value is subject to th e impurity in the same.

6. Growth in investment over a period of time

(i) Silver [Based on market value of silver for 1-4-1981 and last 15 years]