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Idle gold can now earn returns through options like the Gold Monetisation Scheme, loans, or leasing.
Digital tools like ETFs and EGRs make gold trading easier and more transparent.
Redesigning old jewellery can turn dormant gold into a usable and valuable asset.
Gold often sits unused in lockers or drawers, holding value but without generating any income. However, with several financial tools available, idle gold can be turned into a productive asset that helps you earn passive income.
This article will explain practical, easy-to-understand ways to make your gold work for you, turning an idle possession into a smart financial opportunity.
One of the safest and most effective ways is to utilize the Gold Monetisation Scheme (GMS). Under this scheme, physical gold, such as jewellery, coins, or bars, can be deposited with authorized banks at 2.25% and 2.5% per annum.
However, since March 2025, medium and long-term options have been discontinued; only short-term (1–3 years) deposits are active. This option suits those who hold gold purely as an investment. Ownership remains with the depositor through a certificate, though physical possession is transferred to the bank.
Also Read – Gold Price Today: MCX Gold Tops Rs. 1.20 Lakh Ahead of US Fed Decision, Geopolitical Tensions Lift Demand
Another productive strategy is to use gold as a source of liquidity instead of selling it. One can make gold-backed loans by pledging gold and borrowing money, rather than selling it outright. In 2025, the Reserve Bank of India (RBI) set a limit on the loan-to-value ratio at 85% for small loans and 75% for larger loans.
Interest rates usually range from 9% to 15% per annum, depending on the institution and profile. This option allows loan takers to retain ownership of gold while unlocking cash for other purposes.
Beyond deposit and loan, making the gold itself generate more gold is a creative approach. Leasing platforms like SafeGold can help you convert your old or unused jewellery into 24k gold and lease it to jewellers. Returns, usually around 2%-5% per annum, are calculated annually based on the grams of gold.
For example, if one begins with 100 grams, a 5% yield would lead to 105 grams at year's end. The model combines both returns and potential gold-price appreciation.
Converting physical gold into a financial instrument offers flexibility. Investing in gold exchange-traded funds (ETFs) or using electronic gold receipts (EGRs) offers transparency and liquidity. The scheme allows one to track or trade gold holdings without the risks of storage or making charges.
Tax benefits often favour digital gold over physical. Investors gain access to easier trading, fractional ownership, and lower overheads. However, the conversion requires the sale of physical gold, which may trigger capital gains tax.
A less formal but productive method is to redesign or exchange old jewellery. This approach draws value from the same gold while avoiding new-gold costs and making charges. According to reports, households are treating old jewellery as “sleeping capital” and upgrading to usable designs.
This option is suitable for those who value both the aesthetic appeal and the investment value of gold jewelry. However, one must factor in refining losses (typically 1% to 2%) and new making charges.
Also Read – Gold ETFs vs Physical Gold: Which Is the Smarter Investment in 2025?
Unproductive gold can still be turned into a smart financial asset that generates steady returns. Options such as the Gold Monetisation Scheme, gold loans, leasing platforms, digital gold investments and jewellery upgrades allow you to put your idle gold to work.
The yellow metal holds great potential and serves as a working asset, offering liquidity, returns, wearable value, and digital investment opportunities. Gold owners should evaluate their priorities and choose the best option to help them earn passive income with their gold, rather than leaving it idle in drawers.
1. Will gold be higher in 2025?
Ans. Yes, gold prices are expected to remain strong or rise in 2025 amid global economic uncertainty, inflation, and steady demand from central banks and investors seeking safe assets. Experts predict moderate but consistent price growth.
2. How to start SIP in digital gold?
Ans. You can start a SIP in digital gold through apps like Paytm, PhonePe, or investment platforms. Choose an amount, set a frequency, and the app automatically buys gold regularly, helping you build wealth over time.
3. Is investing in gold a good idea in 2025?
Ans. Yes, gold remains a good investment in 2025 as it protects against inflation, market volatility, and currency weakness. It also adds stability to your portfolio and ensures long-term value growth.
4. What will the price of gold be in 2025?
Ans. Gold prices in 2025 are expected to range between Rs. 70,000 and Rs. 75,000 per 10 grams, depending on inflation, global tensions, and the strength of the US dollar. Analysts see steady growth driven by safe-haven demand.
5. What will be the gold price in 2025 in India?
Ans. In India, gold prices could touch around Rs. 72,000 per 10 grams in 2025 if inflation and geopolitical issues continue. Growing investor demand and festive season buying will also support higher prices.
6. Will gold fall in 2026?
Ans. Gold prices might stabilize or slightly correct in 2026 if inflation eases and interest rates drop. However, long-term prospects remain strong as global investors still view gold as a safe and valuable asset.
