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Gold:

Investing in gold does not offer any tax benefits. Ornaments made of silver, gold, platinum or any other precious metals or precious or semi-precious stones set in any furniture, utensil or article or any wearing apparel are treated as capital assets under gold. 

Therefore, the long term or the short term capital gain liability will arise at the time of sale of such assets.

Gold or jewellery when held for a period of more than 36 months is treated as long term capital asset and if the same is held for a period of less than 36 months, then it is treated as short term capital assets. 

While calculating capital gains, the investor or the assessee is entitled to claim the cost of acquisition as deduction from the sale value, which means that the index cost of acquisition is allowed as deduction in terms of this asset as well. 

In case of capital loss, whether short term or long term, can be carried forward for a maximum period of eight years for the assessment year, in which the loss was first incurred and can be set off against any capital gain, long or short term.

However, a long term capital loss can be set off only against the long term capital gain. If there is a tax liability arising from a long term capital gain on the sale of the gold or other jewellery, it can be optimized by investing in a residential house under Section 54-F or any other specified asset, like capital gain bonds under Section 54-EC.

Gold does not fall under the purview of Gift Tax and hence, there is no tax implication as far as gift is concerned, but it does fall under the purview of Wealth Tax.