In India primary demand for gold is for use as jewellery, the second thing used as investments. Unlike China, the next highest consumer of gold in the world, whose primary demand for gold is for industrial purposes, but India’s industrial usage of gold is very less. India uses gold primarily in the form of jewelry and investments. Whenever you tend to purchase gold always check for gold rate today and buy only the BIS hallmark jewellery.
Domestic production of gold in India is also going but very limited. India economy relies heavily on gold imports every year. Currently, the Kolar mines in Karnataka are the only operational and working mines in India. Gold is considered safe for investment. Its also called any time money.
Today gold rate in India change on a daily basis, with a number of factors which impacting their price in a given day. Demand and supply, global market conditions and currency fluctuations (dollar rates) are some of the most critical factors which go into determining the rate of gold in a country, with rates changing every day.
Today Gold Rate in India
Gold rates vary across different cities in India. Reasons are:
- Tax: Taxes differ from state to state. Some states have higher taxes and some may have low taxes. This is one of the reasons why gold is more expensive? in some cities than others.
- Demand: Growing of Indian population sizes and varying demographics, creates demand for gold. Discounts are usually offered on larger volumes. Gold rates in cities like Mumbai are lower.
- Shipment: India imports bulk gold by sea. Gold rates at port cities e.g. Chennai are lower than those in interior cities e.g. Delhi because of the absence of inland transport charges.
- Local associations: Cities have their own local gold associations which have a say in setting the rate. This will also account for differences in gold rates between cities.
Why is Gold is costly?
Gold is considered valuable for many reasons, mainly
- Value: It is considered as a precious metal, the symbol of wealth and also denotes Goddess Lakshmi. Although gold prices fluctuate and increase every month by its value. For this reason, people tend to invest more and hold on to gold for a long period of time. Gold tends to not be affected by geopolitical or economic turmoil. It is valuable during emergencies, can turn to cash within minutes.
- Industrial uses: Gold is used in certain manufacturing processes, Heard that China is leading gold consumer in the manufacturing industry. Although not comparable to retail consumption, many countries use gold for production purposes.
- Versatile metal: Gold is available in many useful forms like Jewellery or Biscuits or coins making it a versatile investment. It is popularly used as jewellery and other gift items and held in the form of coins, bars or bullion. Also, Tamilnadu famous Tanjore Paintings is made from 22ct gold foils.
- Gold reserves: Gold is maintained as reserves to back paper currencies by many countries. These paper currencies attain their values based on the value of the gold reserves that back them.
- Limited supply: The amount of gold that can be mined and produced in the world is limited. Due to this, gold attains more value as an irreplaceable asset.
- Tradition: Gold has traditionally been used for financial transactions. Also believed symbol of status, has passed down through the ages and prevails even today.
When is the right time to buy gold in India? and where to buy cheap gold in India?
There is no such a thing called the right time to buy gold, Normally in jewellery shops, there are two gold rate one is morning and the evening rate is higher, so always try to purchase Gold in the morning. So, in order to make the most of your investment, try to invest in the metal during the off-season i.e., and buy before 10th of every month and when no major festivals aren’t around. This is because major festivals bring about an influx of buyers which will push gold prices higher.
Why gold price is increasing in India?
Gold rate in the country tend to change on a regular basis, with various factors. The recent trends could highlight the reason for such changes. Some of the most common factors that impact gold rates in India are mentioned below.
- Supply and Demand – Gold rate increase when the demand exceeds supply. Gold, being a natural resource is available in limited quantities, and each time the supply reduces there is an increase in gold rate.
- International relations – International trends have a deep impact on gold rate in India, primarily due to the fact that India primarily depends on imports to meet the local demand. Any changes in international relations could cause a change in the local gold rate.
- US dollar – The US dollar plays a key role in determining the international gold rate and one country’s economy. A strong dollar results in poor gold performance and vice versa, resulting in costlier gold each time the dollar underperforms.
- Market conditions – Gold is inversely proportional to market performance, with prices going up each time there is pressure on markets.
- Government taxes and duties – The government imposes taxes and duties on a number of commodities, including gold. For jewellery purchase in shops, there will be 3% GST on your purchase. Any increase in these taxes automatically increases gold rate.
There is a recent increase in gold prices due to improved performance on the international front. The US Federal Policy rate change had a huge impact on prices.
Gold Weight Conversion Table
|To convert from||To||Multiply by|
|Troy ounces||Avoirdupois ounces||1.09714|
|Avoirdupois ounces||Troy ounces||0.911458|
|Short tonne||Metric tonne||0.9072|
How much is an Ounce of Gold Worth Today?
An ounce is also known as a troy ounce. It is a measure of gold which is equivalent to 31.1035 gms of gold. 8 grams of gold is equal to 1 pound (1 pavan in Tamil). Since the gold rate change on a daily basis and it varies from one location to the other, the rate of an ounce of gold varies each place.For ex, if the gold price for today is Rupees 3,100 per gram, then, an ounce of gold will be worth Rupees 3,100 multiplied by 31.1035 which is Rs. 96,420.84. Although an ounce of gold’s worth can be slightly different, it will be dependent on the changes in the price of gold.