How much gold is too much gold?

Gold is a hedge and a cultural obligation at the same time, which is why Indian households routinely end up with far more of it than any allocation model would suggest.

Why Indian households hold so much

Gold in India is savings, jewellery, wedding obligation and inheritance at once. Allocation models that suggest 5-10% were not written for a household where a daughter's wedding is partly denominated in grams.

How to think about the excess

Split it mentally: gold that is genuinely earmarked for a family event, and gold that is simply stored wealth. The first is a goal with a deadline. The second is an investment that should be judged against every other investment you could hold.

Valuing it honestly

By weight and purity at the current rate — 22K jewellery is 91.6% gold, so the melt value trails the bill value by making charges and GST you will not recover. Old family gold is often worth more than people assume and jewellery bought last year is often worth less.

Where FamTally comes in

FamTally does this for you: every asset and loan in one place, tagged to the family member who holds it, valued at today's figures, with net worth tracked as a running number the whole family can see. Add the AI assistant and you can simply ask what changed and why. Free to use.

Stop doing this in a spreadsheet

FamTally keeps your loans, income, expenses, assets, insurance and goals in one place, forecasts five years ahead, and answers questions about your own numbers. Free, and built for Indian families.

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Questions people ask

How much gold should a family hold?

Conventional allocation suggests 5-10% as an investment. Indian households usually hold more, and the sensible response is to separate gold earmarked for family events from gold that is simply stored wealth.

How do I value my jewellery?

Weight in grams multiplied by the rate for that purity — 22K is 91.6% of the 24K rate. Making charges and GST are not recoverable.

Is a gold loan a good idea?

For a short, defined gap, yes — it is among the cheapest secured borrowing available. For an open-ended shortfall it puts family jewellery at risk of auction.