gold holdings on the family balance sheet

Net worth is everything you own minus everything you owe. Gold sits on the owning side — but only at its realisable value, and only after you net off any loan secured against it. Making charges and GST are paid on the way in and not recovered on the way out, so jewellery is worth its melt value, not its bill value.

Counts as: An asset
Liquidity: High
Net off: Any loan against it

Gross value is not net worth

If you hold gold holdings worth ₹10 lakh with ₹4 lakh borrowed against them, your net worth carries ₹6 lakh, not ₹10 lakh. The most common household error is listing assets at full value while the matching loan sits in a different notebook entirely.

How much is too much

There is no universal right share, but concentration is the risk worth watching. Indian households are famously heavy in property and gold and light in liquid assets, which looks fine on a statement and hurts badly in an emergency. The test: if you needed three months of expenses next week, how much of this would you have to sell at a bad price?

The three-line check

Once a year, ask three things of this holding. Is it worth what I think it is worth? Is there a liability attached that I have forgotten? Could I convert it if I had to? Assets that fail the third question are not wrong to own — they are just wrong to count on.

Where FamTally comes in

FamTally computes net worth from what the family actually holds, nets loans off against the assets they are secured on, and grades every holding for liquidity — so you can see at a glance how much of your wealth you could reach this week. Assets can be tagged to a family member, which matters when the household is more than two people. 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

Do gold holdings count in net worth?

Yes, at today's realisable value, minus any loan secured against them.

Should the home I live in count?

It belongs on the statement, but not in your retirement plan — a home you live in provides shelter, not income. Many families track it separately for exactly this reason.

How do I count a jointly owned asset?

Count the household's share. If the family is the unit you are tracking, count the whole thing and tag it to the members who own it.