Gold: A Safe Haven for Savings and Tradition

For many British Muslim, British South Asian, and British Bangladeshi women, gold is more than just a precious metal. It is a cultural symbol, a family heirloom, and a safe haven for savings. This is especially true for women who may not have access to traditional financial products or who prefer to keep their wealth in a tangible form.

However, owning gold can have implications for eligibility for benefits such as Universal Credit. In this article, we will explore the challenges and opportunities of investing in gold for British Muslim, British South Asian, and British Bangladeshi women.

The Appeal of Gold-There are several reasons why gold is such a popular investment for British Muslim, British South Asian, and British Bangladeshi women.

Cultural Significance: Gold has a long history of cultural significance in many South Asian communities. It is often given as a dowry at weddings and is seen as a symbol of wealth and prosperity.

Safe Haven: Gold is a tangible asset that is not subject to the same risks as stocks or bonds. This makes it a safe haven for savings, especially in times of economic uncertainty.

Hedge Against Inflation: Gold is often seen as a hedge against inflation. This means that its value tends to rise when the cost of living increases.

Challenges of Owning Gold-While there are many benefits to owning gold, there are also some challenges to consider.

Security: Gold is a valuable asset that can be a target for thieves. It is important to store gold safely, such as in a safe deposit box or with a trusted jeweler.

 Liquidity: Gold can be difficult to sell quickly, especially if you need to access your funds in an emergency.

 Benefit Implications: Owning gold can affect your eligibility for certain benefits, such as Universal Credit.

Universal Credit and Gold-Universal Credit is a means-tested benefit that is available to people on low incomes. When assessing eligibility for Universal Credit, the government takes into account your capital, which includes any savings or investments you have.

However, personal possessions are disregarded for Universal Credit assessments. This would include gold that is worn as jewelry or kept as a family heirloom.

Where there would be an issue is if the gold had been purchased with the intention to reduce capital in order to claim benefits.

Gold can be a valuable investment for British Muslim, British South Asian, and British Bangladeshi women. However, it is important to be aware of the challenges and implications of owning gold. If you are considering investing in gold, it is important to speak to a financial advisor to understand the risks and benefits.

Zakat on Gold-Zakat is a religious obligation for Muslims to give a portion of their wealth to charity. The amount of zakat to be paid on gold is 2.5% of its value. This means that if you have £1,000 worth of gold, you would need to pay £25 in zakat.

Zakat is due on any gold that you own that has been in your possession for one lunar year. This means that if you bought gold today, you would not need to pay zakat on it until next year.

If you are unsure about how much zakat you need to pay, you can speak to an Islamicscholar or financial advisor.