Summary of this article
What should retirees in India do with accumulated gold and silver after retirement when new purchases are discouraged?
They may bequeath these metals via a detailed Will and secure lockers.
Seniors can also sell their holdings to reinvest for higher retirement income or retain some bullion for emergencies.
Before retirement, you may have gradually bought a significant quantity of gold and silver in jewellery or other forms. As gold and silver prices have recently skyrocketed and the Prime Minister has also urged people to avoid new purchases of precious metals, what should your strategy be for your gold and silver holdings after your retirement?
Let’s check the options available to you, considering the present situation.
Distribute Your Precious Metals To Your Inheritor
This is what most retirees do. They distribute their precious metal holdings to their chosen heirs. It’s not necessary to distribute precious metals immediately after you retire. You may make a list of your precious metals and mention their details in your Will, along with the names of your heirs who will inherit them. You may keep the precious metals in a safe vault like your bank’s locker and give its details in the Will so that the same can be easily accessed when the precious metals have to be handed over to your inheritor.
Sell Your Gold And Silver To Earn Greater Regular Income
If you are looking for a greater financial cushion after your retirement than what you have planned, you may consider selling your gold and silver holdings. The sale proceeds can be used for investment in appropriate instruments that align with your retirement goal. It can help you earn a higher regular income, and thus, your retirement life can become financially more stable. However, it is important to consider the tax liability before you sell gold or silver in the market. When you sell physical gold and silver with less than two years of holding, the gain on such holding is considered as short-term capital gains (STCG), and if sold after two years of holding, it is considered as long-term capital gains (LTCG). STCG is added to your regular income and taxed based on your slab rate, whereas LTCG is taxed at a 12.5 per cent rate.
Keep Some Gold And Silver For Financial Emergency
You may keep some of your precious metals for a financial emergency. Gold and silver in your possession can prove to be handy when you have already exhausted your emergency fund. Try to keep precious metals that are in bullion form, as they are easier to liquidate compared to jewellery.
Avoid keeping your gold and silver belongings at home because it can be risky. In many cases, burglars target senior people, anticipating their gold and silver holdings at home. You may use a bank locker to keep your gold and silver safe while maintaining a small quantity at your home.
