5 Smart Ways to Monetise Idle Gold Holdings in 2025

Gold is one of the safest assets among various investment options. Many Indian parents hold gold as a form of security for their children’s future or as a symbol of wealth. However, if it is kept in a locker for years, it does not generate any returns or grow in value.

In 2025, you can turn your idle gold into an active financial resource. With the right strategy, gold can help you manage emergencies, invest smarter, and build long-term wealth. Let’s understand how this is possible.

5 Smart Ways to Monetise Idle Gold Holdings in 2025

Explore these innovative ways to use your idle gold holdings and monetise them easily:

1. Gold Loans: The Fastest Way to Unlock Funds from Gold

A Gold Loan is a straightforward way to obtain funds using your gold as collateral, without the need to sell it. You deposit your gold with a bank or a reliable financial company. They examine the purity and weight of your gold. Then they offer you a loan at a certain percentage of its value. When you pay off the loan, you can reclaim your gold.

Why opt for Gold Loans? Here are the reasons:

• Provides instant access to people who want money quickly to cover unplanned expenses, a medical need, education expenses, or business requirements.
• You do not need to give up ownership of your gold.
• You need to use gold as collateral. A gold loan may offer lower interest rates compared to other loans.
• They are approved much more quickly than other types of loans, as it is a secured loan.
• These loans offer flexible repayment options. You can pay the interest monthly and the principal later or choose to repay the entire amount at the end of the tenure.
• Additionally, lenders will be storing your gold in their security vaults, so there is no need for you to be worried about theft.

Also Read: What is a Gold Loan or Loan Against Gold?

2. Sovereign Gold Bond (SGB) Scheme: Earn Interest and Price Growth

Sovereign Gold Bonds or SGBs are one of the most innovative ways to invest in gold. These bonds are not linked to the physical gold. These are government bonds linked to the price of gold. In return for a bond, you get:

• 2.5% annual interest credited to your bank account
• No capital gains tax at maturity
• Long-term value appreciation
• 8-year maturity with exit allowed after the 5th year from the date of issue

Additionally, SGBs make gold a growing asset. Rather than being a dormant asset, gold earns interest for you. At the same time, it automatically adjusts the value according to the market price.

SGBs are ideal for individuals with a long-term perspective who are seeking steady and secure growth of their gold in 2025.

3.​‍​‌‍​‍‌ Gold Savings Schemes: Simple Monthly Plans with Bonus Rewards

With gold savings plans, you provide a jeweller with a set amount of money every month. At the end of the plan, which typically lasts 10 to 36 months, the jeweller may offer you a bonus or additional grams of gold. This will allow you to purchase more gold.

This strategy doesn't offer cash back, unlike loans or Sovereign Gold Bonds (SGBs). However, it does allow you to turn small monthly payments into a substantial amount of gold. It is an excellent choice for people who already own some amount of gold. This way, they can gradually add to their collection without paying a large sum all at once.

Ideal for:

• Future jewellery purchases
• Wedding planning
• Long-term gifting

Moreover, Gold savings schemes are very secure when obtained from reliable jewellers. They help you plan more efficiently and systematically increase the value of your gold holdings.

4. Digital Gold: A Modern Way to Buy and Sell Gold Online

Digital gold has gained immense popularity over the past few years. Unlike traditional methods, there is no need to buy physical gold jewellery or coins. Many platforms allow investments as small as ₹1-₹10, depending on the provider.

You can trade digital gold at real-time market rates. This increases your gold value when the price goes up. Many people also convert digital gold into physical gold if they genuinely want to purchase jewellery.

Here are the key benefits of investing in digital gold:

• No storage concerns
• Instant liquidity
• Option to invest systematically through Gold SIPs
• Option to convert digital gold into jewellery

5. Gold ETFs and Gold Mutual Funds: Grow Your Gold Like a Financial Investment

Gold ETFs and gold mutual funds are other innovative ways to invest in gold without buying physical jewellery or coins. You can invest in the stock market, and the value of your investment fluctuates with gold prices.

Features of Gold ETFs (Exchange-Traded Funds):

• They work like shares
• You need a demat account to buy or sell them
• You can purchase even small units instead of large amounts of gold

Features of Gold Mutual Funds:

• These are like normal mutual funds
• You don’t need a demat account
• You can start with a small amount, like a SIP

Both options are fully digital, safe, and can be bought or sold at any time. They allow you to grow your gold holdings gradually without concerns about storage or purity.

Also Read: Digital Gold vs Gold ETF: Which is Better? Key Differences

To Conclude

Gold has always been a safe-haven asset. However, many people keep their gold hidden away in lockers. Today, there are several ways to put your idle gold to work and generate returns. You can earn interest, take loans against it, invest in digital gold, or even grow its value through the stock market. Choose the method that you feel most comfortable with.

However, for quick access to funds, consider a Poonawalla Fincorp Gold Loan. It offers fast approval, competitive interest rates, and complete security for your gold jewellery.

FAQs

Can I monetise gold that is inherited or very old?

Yes, as long as it passes purity checks, most lenders and platforms accept old or inherited gold.

Is it safe to take a Gold Loan from a lender?

Yes, as regulated lenders store your gold in secure vaults and return it once you repay the loan.

Can I exit digital gold or Gold ETFs at any time?

Yes, both offer flexible exits, though the timing rules vary by platform or mutual fund.

Will damaged jewellery reduce the value I get?

No, only the purity and net weight of the gold matter. The design or condition of the jewellery does not affect its valuation.

What is the minimum amount required for SGBs or Gold ETFs?

SGBs require a minimum investment of 1 gram of gold. Gold ETFs allow smaller investments depending on the scheme and the current unit price.