Are You Storing Gold in Bank Lockers? Here’s What Financial Experts Say

Gold in Bank Lockers:
Many people store valuable items, including gold, in bank lockers assuming they are completely safe. But recent financial advice from expert Lowish Anand has raised concerns about the security and practicality of keeping gold locked away in a bank locker.

Gold in Bank Lockers: Not as Safe as You Think

In a recent LinkedIn post, financial advisor Lowish Anand shared a personal experience where his close friend suffered significant financial loss due to a flood that damaged their bank locker. While insurance for lockers is available, it only covers a maximum of ₹3 lakh, which was insufficient to cover the value of the lost gold. Anand pointed out that while lockers provide a physical space to store gold, they don’t offer foolproof protection.

Alternatives to Storing Gold in Lockers

Anand suggests considering the Gold Monetisation Scheme (GMS) as an alternative to storing gold in a locker. Under this scheme, individuals can deposit their unused gold in banks, where it is tested for purity and weight. The gold is then registered, and individuals earn annual interest ranging from 2.25% to 2.5% on the deposited gold.

Benefits of the Gold Monetisation Scheme

Earn Interest on Idle Gold: Instead of letting gold sit unused, the GMS allows you to earn interest on it without the risk of theft or damage.
Avoid Locker Insurance Limits: The GMS eliminates concerns over insurance limits, providing better security than a traditional locker.
No Fear of Devaluation: With gold stored in a monetisation scheme, its value remains protected against fluctuating market conditions, unlike in a locker.

Why People Should Rethink Gold Lockers

Anand emphasized that many people leave gold in lockers for decades without using it. He advised that instead of letting gold gather dust, individuals should utilize schemes like the GMS to benefit from it financially. A shift in mindset is needed to avoid wasting the potential of gold as a valuable asset.
Gold stored in a bank locker may not offer the security and returns you think it does. By exploring gold monetisation schemes, you can unlock the true potential of your gold while keeping it safe from unforeseen risks.

Disclaimer: This article is for informational purposes only. Please consult a certified financial advisor before making any investment decisions.

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