Do you keep your gold assets in bank locker? You are probably paying some fees every year for your lockers.

Instead, what if you could get a locker for free?

What if I said banks would pay you to keep your gold assets safe?

Time for a thread. 👇👇👇

1/ The major issue with having gold in bank lockers is

- You pay hefty fees on an annual basis to the bank.
- The lockers aren't insured
- There's no real safety/security in case of theft or an unfortunate event.

Is there a work around?

Yes.

Enter "Gold Monetisation Scheme".
2/ GOI introduced the Gold Monetisation Scheme in 2015. The main objective was to cut down India's gold imports.

How it works:

You deposit your gold in bank.
They keep it safe for a fixed number of years.
You get it back as physical gold or cash on maturity.
3/ What should you do to be eligible?

You should take the gold you want to deposit to a Collection and Purity Testing Centre (CPTC). GOI has established over 300 CPTC's across India.

They will take your gold, evaluate its purity, and provide a receipt for the gold quantity.
4/ You take the receipt to your bank.

Create a gold monetisation scheme account in your bank.

Give them the receipt provided by PTC.

Your bank will then convert that receipt to a scheme certificate as part of your GMS account.
5/ The interest rates are as follows:

5-7 years - 2.25% per annum
12-15 years - 2.5% per annum

Tax Benefits:

No capital gains tax on the profits made through this scheme.

Capital gains are also exempt from wealth tax and income tax.
6/ What all can you deposit?

You can deposit Gold bars, coins, even old jewellery.

What can you not deposit?

You can't deposit Gold jewellery encrusted with gemstones.
7/ What's the catch?

You won't get your gold back in its original form.

Upon maturity, you'll get fresh gold coin/bars or cash.

Once you deposit your jewellery/bar/coin, banks send them to Mineral Trading Corporation for minting gold coins, or sell it to jewellers.
8/ Short term deposits do not calculate interest in the form of cash. They give you interest in gold in grams.

Ex: If the interest is 0.5% per annum, you get 1 gram on 200 grams deposited, at the end of the year.
9/ Medium and long term deposits calculate interest in Rupees, based on the Gold value whenever you deposited.

If you deposited 200g at a value of 600k, and the interest rate is 2.5%, you'll get 15000 rupees as interest in a year.

This is of course tax exempt.
10/ 2.25-2.5% interest rate on Gold is on par with the SGB scheme provided by the RBI.

Also, the option to encash the gold on maturity is also attractive in case you want cash instead of physical gold once the scheme matures.
11/ Is there a cap on how much you can deposit? Yes and No.

Minimum deposit : 30 grams
Maximum deposit : Unlimited.
12/ Details of GMS in few bank websites:

SBI : https://t.co/uDmrJOM07K

ICICI : https://t.co/niB8oodCmu

HDFC : https://t.co/B67Re4iJkg

Contact your bank for more details on this.

More from Shravan Venkataraman 🔥🚀💰

Hedge Funds spend millions of dollars per year to access high quality financial datasets.

Retail sources cost anywhere from $5k-50k per year.

But, here are 11 data sources that have HIGH QUALITY and FREE data you can access right away.

🧵 👇

1/ Alpha Vantage |
https://t.co/ExlS7Jdnsz

Provides real time & historical equities, forex, and cryptocurrencies data across 60+ exchanges.

They provide both intraday and D/W/M timeframe data.

You can also access economic & fundamental data for last 20 years through them.

2/ IEX | https://t.co/drqeoU8Ee1

Investors Exchange provides historical data going back upto 15 years for US equities through API access.

You'll need an API key in order to access the API.

3/ EconDB | https://t.co/6mZxDeaJfh

This website provides economic data and economic indicators for almost all the countries in the world.

You can search for your preferred dataset through their search engine here

4/ Quandl | https://t.co/fW4PEQaW66

Quandl has financial and alternate data across 50+ exchanges, from over 300 sources.

They also have information on capital markets, energy, shipping, healthcare, education, demography, economics and society.
Have you ever had 4-5 profitable trades in a row, and you bet all your profits on your next trade feeling "in the zone" only to lose it all?

That's called as "hot-hand fallacy" bias.

I ran a poll recently to outline two classic biases we have as humans.

Thread below 👇👇


1/ *Hot-Hand Fallacy* first had its origin in the game of basketball.

If a player shoots few baskets in a row, people generally predict that the next shot will also be a basket.

This is ignoring the fact that each shot is independent of the ones that came prior.

2/ In this poll, 41.1% people voted that the batsman who hit 4 sixes in a row, will hit a sixer in the 5th ball also.

This is classic hot-hand fallacy.

Each ball's outcome is independent.

The probability is not 50% FYI (number of outcomes is not 2).

These 148 people who voted that the next ball will also be a sixer, did so because they believe that the batsman is on a hot streak, and that his streak would continue.

This is an emotional bias and is usually attached to human performance related events only.

3/ 45.3% (162) people voted that the 5th ball would be a dot ball, meaning the batsman wouldn't score anything.

These people displayed the classic "negative-recency" bias, which is also called the "Gambler's Fallacy".

More from Finance

1/ My Mission: To Spread Financial Wellness (thread)

Here’s what "financial wellness" means to me

⬇️⬇️⬇️⬇️⬇️⬇️⬇️⬇️⬇️⬇️

2/ Mindset

Humans are programmed to think short-term

Evolutionary, thinking short-term makes sense. It helps with survival.

Financial wellness is all about training yourself to develop a long-term mindset

Not easy -- it takes practice


3/ Mindset

If you join the right tribes, you can’t help but improve

My favs:
@AffordAnything
@ChooseFiFI
FinTwit
@MicroCapClub
@themotleyfoolFool
@visualizevalue

Twitter / Podcasts / Blogs / YouTube -- when used correctly -- are amazing


4/ Mindset

Educate yourself - constantly!

Especially about:

1⃣Money
2⃣Relationships
3⃣Health

These 3 categories have an outsized influence on all areas of your life

Books


5/ Career

In the beginning, focus on growing your income

Do more than what is expected

Become a lynchpin

Find a career that you ENJOY (<- important!) that also has high-income potential

Start a side hustle (<- important!)

Build your talent

You May Also Like