2025, Vol. 8, Issue 2

author(s)
Krishna CP

abstract
Gold has traditionally been regarded as a safe investment in India, prized for its stability against inflation and currency fluctuations. However, its role as a vehicle for storing and transferring black money remains a persistent challenge. This empirical study investigates the use of gold as a safe haven for black money in India by analysing recent trends and government reports. The study uses primary and secondary data sources, including government enforcement agency reports and academic research, to examine the correlation between rising gold prices and the increase in gold smuggling incidents. Findings reveal a significant link between economic uncertainties, high customs duties and the exploitation of gold for laundering illicit wealth. Despite efforts like the Black Money and Imposition of Tax Act, 2015 and customs enforcement, recovery of black money remains limited due to complex smuggling networks and regulatory gaps. The study recommends enhanced monitoring, international cooperation and public awareness to curb this menace.