No Limits on Gold Purchases; High-Level Officials Possess Significant Shares of Gold

In the asset declarations of the Prime Minister and ministers, real estate, shares, and gold are the top priorities. Guru Paudel, spokesperson for Nepal Rastra Bank, stated that there are no restrictions on gold purchases but the source of funds must be verified. Arjun Rasaili, president of the Gold and Silver Traders Federation, mentioned that only gold jewelry can be purchased and held.

Kathmandu, 1 Baisakh – Gold ranks highly among the assets accumulated by “high profile” individuals. Senior officials tend to invest in gold after real estate and shares. When public office holders disclose their wealth, real estate tops the list, followed by gold and shares.

Even after securing nearly two-thirds of the mandate following the Janandolan movement, the Prime Minister and ministers of the government chiefly hold real estate, shares, and gold in their portfolios. While legal limits exist for buying real estate and shares, no such cap applies to gold. This explains the sizable gold holdings of senior officials. Stakeholders note that gold investments have increased because even large amounts of money are represented by relatively small quantities of gold.

There are limits on real estate ownership, and buying shares is subject to restrictions based on sector and liquidity. However, daily purchases of gold jewelry up to NPR 999,000 are possible, leading to greater investment in gold. Traders also point out that investments fluctuate depending on market conditions for real estate, shares, and gold.

The Land Act 2021 caps ownership to a maximum of 10 bighas. In the secondary securities market, banks, financial institutions, insurance, and microfinance regulators limit share quantities. While companies in hydropower and other sectors face no such restrictions, market liquidity is controlled.

Although there are regulations for gold bullion, no restrictions apply when buying in the form of jewelry. The source of funds may be investigated, with the Asset Laundering Prevention Department conducting source verification. Nepal Rastra Bank spokesperson Guru Paudel confirmed that there are no limits on gold purchases.

According to the asset disclosures of the current government’s Prime Minister and ministers, the quantities of gold held are significant. Prime Minister Balen Shah owns 190 tolas, Home Minister Sudan Gurung 89 tolas, Finance Minister Dr. Swarnim Wagle 45 tolas, Foreign Minister Shisir Khanal 22 tolas, and Energy Minister Virajbhakta Shrestha 15 tolas of gold.

Physical Infrastructure Minister Sunil Lamsal holds 30 tolas, Law Minister Sobita Gautam 15, Women’s Minister Sita Wadi 18, General Administration Minister Pratibha Rawal 25, Health Minister Nisha Mehta 30, Education Minister Sasmit Pokhrel 25, Tourism Minister Khadkaraj Paudel 11, Communication Minister Dr. Bikram Timilsina 19.5, and Agriculture Minister Geeta Chaudhary 9 tolas of gold.

Industry Minister Gaurikumar Yadav possesses 180 tolas, while Labor Minister Ramji Yadav holds 80 tolas of gold.

Arjun Rasaili, president of the Gold and Silver Traders Federation, emphasized that the source of funds must be transparent to hold gold. “Gold jewelry can be held only as an outcome; there is no policy to increase or limit holdings,” Rasaili said. “Only purchases exceeding NPR 1 million in a single day are scrutinized. However, daily purchases just below NPR 1 million are allowed.” He advised that gold must be bought as jewelry—rings or earrings, for example.

According to Nepal Rastra Bank regulations, individuals without a PAN number are prohibited from buying gold bullion. Rasaili added, “With limits on real estate and slow transactions, investments shifted to gold. When gold prices increase, sales rise; when prices fall, demand increases again, only to fall once more.” The practice of holding gold as jewelry has driven gold investment.

Spokesperson Paudel confirmed that gold bullion purchases are prohibited. In the past, Nepal Rastra Bank sold 50-gram coins commonly bought and held by the public. Currently, small coins are sold during occasions like Dashain, depending on gold stock. Additionally, Nepalese returning from abroad may bring gold jewelry up to 50 grams for women and 25 grams for men, which encourages ordinary citizens to hold gold at home.

Paudel noted there is no limit on buying jewelry. Gold is an investment area with prices highly volatile on global markets. “Gold combines investment, wealth, and culture because of our social values and traditions,” he stated. “Phones may depreciate in value, but gold investments contribute to wealth accumulation.”

He suggested that financial resources should be focused on productive sectors that create employment. While there is a quota system for gold imports nationwide, there is no limit on holding gold for personal use. “Daily imports total 25 kilograms, with an annual volume of 9,000 kilograms, yet daily market demand is 40 kilograms,” Paudel said. “10 kilograms are supplied daily from buying and selling old jewelry, but there remains a shortfall of 5-7 kilograms.”

There is no limit on gold exports, allowing unrestricted shipment. No limits exist on individual accumulation given no import restrictions. When selling old gold, buyers must issue receipts, which can be accepted as proof of source.