|24 Carat||22 Carat|
|10 gram (1 tola)||₹ 31,715||₹ 29,072|
|8 gram||₹ 25,372||₹ 23,258|
|5 gram (half tola)||₹ 15,858||₹ 14,536|
|2 gram||₹ 6,343||₹ 5,814|
|1 gram||₹ 3,172||₹ 2,907|
|24 Carat (Rs/10gm)|
|Highest Gold Rate||-|
|Lowest Gold Rate||-|
|24 Carat (Rs/10gm)||22 Carat (Rs/10gm)|
|Gold Rate Mumbai||₹ 32,688||₹ 31,138|
|Gold Rate Delhi||₹ 32,645||₹ 31,095|
|Gold Rate Bangalore||₹ 31,392||₹ 29,872|
|Gold Rate Chennai||₹ 32,102||₹ 30,572|
|Gold Rate Hyderabad||₹ 32,140||₹ 30,570|
|Gold Rate Kerala||₹ 31,264||₹ 29,764|
|Gold Rate Kolkata||₹ 32,962||₹ 31,342|
|Gold Rate Agra||₹ 32,644||₹ 31,084|
|Gold Rate Amravati||₹ 32,719||₹ 31,119|
|Gold Rate Ahmedabad||₹ 32,935||₹ 31,375|
|Gold Rate Bhopal||₹ 32,729||₹ 31,179|
|Gold Rate Bhubaneshwar||₹ 32,951||₹ 31,381|
|Gold Rate Chandigarh||₹ 32,671||₹ 31,101|
|Gold Rate Dehradun||₹ 32,632||₹ 31,092|
|Gold Rate Gurgaon||₹ 32,655||₹ 31,065|
|Gold Rate Indore||₹ 32,719||₹ 31,179|
|Gold Rate Jaipur||₹ 32,900||₹ 31,320|
|Gold Rate Jammu||₹ 32,622||₹ 31,102|
|Gold Rate Kochi||₹ 31,294||₹ 29,784|
|Gold Rate Lucknow||₹ 32,679||₹ 31,119|
|Gold Rate Madurai||₹ 32,100||₹ 30,580|
|Gold Rate Mangalore||₹ 31,350||₹ 29,860|
|Gold Rate Noida||₹ 32,678||₹ 31,118|
|Gold Rate Pune||₹ 32,694||₹ 31,164|
|Gold Rate Patna||₹ 32,922||₹ 31,342|
|Gold Rate Panaji||₹ 31,412||₹ 29,892|
|Gold Rate Pondicherry||₹ 32,151||₹ 30,621|
|Gold Rate Rajkot||₹ 32,949||₹ 31,379|
|Gold Rate Raipur||₹ 32,727||₹ 31,167|
|Gold Rate Ranchi||₹ 32,969||₹ 31,349|
|Gold Rate Surat||₹ 32,921||₹ 31,341|
|Gold Rate Shimla||₹ 32,629||₹ 31,089|
|Gold Rate Srinagar||₹ 32,675||₹ 31,105|
|Gold Rate Thane||₹ 32,718||₹ 31,158|
|Gold Rate Udupi||₹ 31,356||₹ 29,886|
|Gold Rate Vadodara||₹ 32,936||₹ 31,376|
|Gold Rate Varanasi||₹ 32,655||₹ 31,075|
|Carat||Hallmark||Purity of Gold||Rs/10gm|
|24 Carat||999||99.9%||₹ 31,715|
|23 Carat||958||95.8%||₹ 30,394|
|22 Carat||916||91.6%||₹ 29,072|
|21 Carat||875||87.5%||₹ 27,751|
|20 Carat||833||83.3%||₹ 26,429|
|18 Carat||750||75.0%||₹ 23,786|
|15 Carat||625||62.5%||₹ 19,822|
|14 Carat||585||58.5%||₹ 18,500|
|24 Carat (Rs/10gm)|
|20 March 2019||₹ 31,826||-136|
|19 March 2019||₹ 31,962||+275|
|18 March 2019||₹ 31,687||-149|
|17 March 2019||₹ 31,836||+0|
|16 March 2019||₹ 31,836||-24|
|15 March 2019||₹ 31,860||+20|
|14 March 2019||₹ 31,840||-386|
|13 March 2019||₹ 32,226||+221|
|12 March 2019||₹ 32,005||-11|
|11 March 2019||₹ 32,016||-180|
|10 March 2019||₹ 32,196||+0|
|09 March 2019||₹ 32,196||+1|
|08 March 2019||₹ 32,195||+380|
|07 March 2019||₹ 31,815||-131|
|06 March 2019||₹ 31,946||-215|
|05 March 2019||₹ 32,161||-168|
|04 March 2019||₹ 32,329||-328|
|03 March 2019||₹ 32,657||+0|
|02 March 2019||₹ 32,657||-131|
|01 March 2019||₹ 32,788||-418|
|28 February 2019||₹ 33,206||-269|
|27 February 2019||₹ 33,475||+26|
|26 February 2019||₹ 33,449||+31|
|25 February 2019||₹ 33,418||-77|
|24 February 2019||₹ 33,495||+0|
|23 February 2019||₹ 33,495||+22|
|22 February 2019||₹ 33,473||-127|
|21 February 2019||₹ 33,600||-290|
|20 February 2019||₹ 33,890||+143|
|19 February 2019||₹ 33,747||+173|
|24 Carat (Rs/10gm)|
|Highest Gold Rate||01 Mar 2019||₹ 32,993|
|Lowest Gold Rate||18 Mar 2019||₹ 31,582|
|Gold Rate on||01 Mar 2019||₹ 32,868|
|Gold Rate on||21 Mar 2019||₹ 31,715|
|24 Carat (Rs/10gm)|
|Highest Gold Rate||20 Feb 2019||₹ 33,939|
|Lowest Gold Rate||13 Feb 2019||₹ 32,835|
|Gold Rate on||01 Feb 2019||₹ 33,272|
|Gold Rate on||28 Feb 2019||₹ 33,123|
|24 Carat (Rs/10gm)|
|Highest Gold Rate||31 Jan 2019||₹ 33,220|
|Lowest Gold Rate||01 Jan 2019||₹ 31,395|
|Gold Rate on||01 Jan 2019||₹ 31,434|
|Gold Rate on||31 Jan 2019||₹ 33,167|
|24 Carat (Rs/10gm)|
|Highest Gold Rate||15 Oct 2018||₹ 32,276|
|Lowest Gold Rate||04 Jan 2018||₹ 29,070|
|Gold Rate on||01 Jan 2018||₹ 29,123|
|24 Carat (Rs/10gm)|
|Highest Gold Rate||08 Sep 2017||₹ 30,428|
|Lowest Gold Rate||01 Jan 2017||₹ 27,445|
|Gold Rate on||01 Jan 2017||₹ 27,445|
|24 Carat (Rs/10gm)|
|Highest Gold Rate||06 Jul 2016||₹ 32,336|
|Lowest Gold Rate||01 Jan 2016||₹ 24,910|
|Gold Rate on||01 Jan 2016||₹ 24,966|
The financial market comprises a legion of potential debt-based instruments, such as loans, which have succoured the diversified needs of individuals and businesses by now. Different types of loans ranging from home loans to auto loans, mortgages to payday loans, student loans to small business loans and gold loans to personal loans; the options are manifold as all are designed to suit both the long-term and short-term financial needs.
Considering the short and medium-term financial needs, gold loan and personal loan are two of the most propitious options being sought after by credit seekers. However, each one of the options certainly has its own set of downsides as well which, often becomes the deal-breaker for loan seekers. Here we bring you an in-depth exploration of both the pros and cons of these two options.
Gold loan is a secured loan where the loan applicant needs to pledge a definite amount of physical jewellery or gold as in the form of collateral in exchange for credit. This type of loan is considered as the most ideal option for attaining funds, especially during an emergency as it can be procured within a short-term duration.
Considering the second option, personal loan is an unsecured loan, provided to meet varied short and medium-term financial obligations. This loan is mostly provided without any sort of security or collateral and thus, impose a higher rate of interest. The primary factor that influences a personal loan approval is the borrower's credit score by which, the lenders get a clear glimpse of his repayment history and capacity.
After taking a deep dive into the pros and cons of both the options, it can be summed up that both gold loan and personal loan have their individual set of trump cards as well as stumbling blocks. Adhering the same, any single option will not be able to serve as the one-size-fits-all solution for all. Thus, it is of paramount significance for a loan borrower to evaluate the attributes of both of these financial instruments meticulously before drawing the conclusion.
Ever since the real value of gold has been brought to the cognizance of Indians, it has been crowned as the herald of wealth and prosperity. Being multidisciplinary in nature, it is being widely used for making exquisite jewellery as well as a source of monetary gains and security. Keeping the latter in consideration, an array of lucrative financial products including gold-backed securities, gold mutual funds, mining stocks, options and futures and more has been already launched in the capital market.
Apart from the same, another propitious option that has succored millions in India for meeting their monetary needs or recovering from financial distress in times of dire is gold loans, where the metal gold is being pledged by the borrower as a security against the loan borrowed by him. Here's all that you need to know about gold loans.
A Brief on the Upsurge of Gold Loan Concept in India
Since the ancient times, gold was treasured as an equivalent to cash. The genesis of this concept can be detected in Southern India where the money lenders and landowners used to borrow money against gold while, keeping it as a collateral security. Adhering the same, the money lending institutions of the present era including Banks and NBFCs have started sanctioning gold loans by accepting the gold of customers as a pledge.
The Basics of Gold Loans
Gold loans are short-term and secured loans where the loan applicant pledges his accumulated gold (kept in the form of jewellery and coins issued by banks) as a collateral security against taking a loan from the bank/lender. Both nationalized and private banks along with NBFCs deploy this deposited gold as security in lieu of the potential payment default by customers. The sanctioned loan amount is generally a certain percentage of the gold value being pledged by the applicant.
As these are short-term, the repayment period generally ranges from a month to a tenure of few years. Thus, for the people in need of money to meet their immediate expenses and with the ability to repay within a short term, gold loans will serve as the ultimate option.Salient Features of a Gold Loan
Gold Loan Eligibility
The eligibility of a customer to avail the loan is calculated on the basis of gold loan amount which, he will receive against the value of gold being pledged by him to the lender, LTV set by the banks and purity of gold. The gold price is based on the average price of 22 carat gold for past 30 days and LTV ratio being offered by the bank. The loan eligibility of the applicant with due consideration of the interest rate charges and term of the gold loan is evaluated for measuring the EMI of gold loan.
Gold Loan EMI Calculator
EMI of a gold loan is the amount which, the borrower needs to pay to the lender every month for repaying the loan amount. It is comprised of the interest component (calculated on the basis of interest rate, loan amount and tenure) and principal amount. The interest component is generally higher during the early months and gradually reduces over time. The EMI calculator serves as the significant tool for borrowers to estimate the monthly EMI for a specific tenure at a specific interest rate.
Being of the most trusted and prestigious banks of India, the Axis Bank renders a potential gold loan scheme which, guarantees immediate loan disposal. The minimum loan amount which, can be availed via this scheme is Rs.25,001 (twenty five thousand and one rupees) whereas, the maximum loan amount is up to Rs.20,00,000 (twenty lakh rupees) at an interest rate of 14.50 - 17.00%. Furthermore, the customers will be able to gain lucrative loyalty points on their transactions as well.
The gold loan scheme rendered by ICICI Bank features an easy loan disbursement process along with minimal documentation. This scheme offers a substantially high loan amount against each gram of gold which, is being kept as a collateral security and the maximum loan quantum worth up to a sum of Rs.15,00,000 (fifteen lakh rupees). The bank offer loans against gold under the propitious EMI scheme with an average interest rate of 12.00 - 16.50%.
Muthoot Finance is one of the pioneer gold financing companies in India that offers rewarding gold loan schemes with a minimum amount of Rs.1,500 (fifteen hundred rupees) and no maximum limit. It offers a gamut of various schemes, with an average interest rate of 12.00 - 24.00%, designed to meet the varied needs of different types of borrowers in India.
The Sampoorna Bharosa Gold Loan scheme, rendered by the HDFC Bank offers loans to the people in need at a lucrative interest rate and facilitates instant over-the-counter loan disbursement to borrowers. The minimum and maximum loan amount offered by the bank are Rs.50,000 (fifty thousand rupees) and Rs.50,00,000 (fifty lakh rupees) respectively at an interest rate of 6.70 - 15.65%.
Manappuram Finance Limited
Manappuram Finance Limited is another premier and esteemed NBFC in India which, offers propitious gold loans at substantially lower interest rates for a minimum and maximum amount of Rs.1000 to Rs. 1 crore respectively. This renowned financial institution offers an array of gold loan plans including the Bullet Repayment scheme and EMI scheme at an average interest rate of 12.00 - 26.00%.
Financial Planning undoubtedly requires concrete knowledge about the market scenario and strong analytical mindset. Thus, before applying for a gold loan, it becomes a requisite for you to acquire ample knowledge on the various types of schemes available, evaluate the effect of possible contingencies, set your financial objectives to make the right move.
21st century broadened the horizon for investors, ushering the scope of portfolio diversification in a way like never before. A leap beyond the dogmatic mindset- capitalists ventured out into unseen quarters and made the most out of the emerging neo capital market that dared to encourage the offbeat, unlike the tried and tested.
Especially in the Indian context, a major transition is reflected by the gradual shift in the fetish for gold- ones regarded an ideal insulation against financial irregularities. The era mandated by practices of enhanced diversity, cultivated the culture of investing in financial products that ensures regular returns along with potential tax benefits, and the promise of liquidation without fringe costs.
Unfortunately gold does not seem to satiate the quest. The myriad disadvantages that plague the priceless commodity might not have lessened its value, but has definitely lead the common man to opt for the better.Let's take a look at the potential shortcomings that define the disadvantages:
In spite of the clearly etched disadvantages, there have been times of exception when gold has clearly emerged a victor, favoring investor sentiments. But then with an array of secure, flexible and high return investment option available in the market gold looks be soon losing its luster. Perhaps the time has come to think beyond!
With the approaching festive season in India, the demand for gold is expected to witness a substantial surge indeed, considering its profound relevance in our cultural beliefs and customs. However, with the unveiling of a myriad of promising investment alternatives such as Digital Gold, Gold Exchange Traded Funds (ETFs) or Sovereign Gold Funds (SGBs), investors are gradually taking the plunge on trying out new prospects and evaluate the returns.
In context to it, here we present to you a comparative outlook which, emphasizes on the propensity to dig out the fact that how investing in physical gold can serve as the most rewarding mode of gold investment.
The Underlying Notion behind the Practice of Investing in Physical Gold
Indians have bequeathed solid gold to their successive generations with the perception that this admirable, precious metal boasts an indestructible nature and its value does not erode with time. Adhering the same, it is believed that the total amount of gold, which is being circulated all around the nation can sum up to a huge stash of money if liquefied. As a timeless asset, it has immense potential to stand firm against the test of time and thus, regarded as a highly vigorous shield for your wealth against any type of financial inconsistencies.
Buying solid gold offers the highest rate of liquidity compared to digital gold, Gold ETF and SGBs. It is considered as an investment mode which, you can dispose off anytime at the prevailing gold price. However, it should be considered that the buying and selling rate of gold varies to a certain extent. For instance; if the selling price or to be more precise, the rate at which gold is being sold by the bullion market is Rs 30000 per 10 gm, then the buying rate might be crucially lower at around Rs 28000 per 10 gm. Thus, buying and selling solid gold within a short duration might lead you to incur significant losses due to the difference in buying price and selling price.
On the contrary, Gold ETF holds a slightly lower rate of liquidity and are traded on the stock exchange at real-time price during a specific trading session. The investor needs to pay the brokerage charges (including government duty) while selling the ETF and the buying and selling rates of ETF differ as in the case of physical gold. However, the extent of variation might be much less compared to physical gold. In case of Sovereign Gold Bonds (SGBs), the expenses which one needs to incur for buying and selling the units is relatively less compared to physical gold. However, even if the entire transaction process is similar to ETFs, the tax implications might be different.
Since the traditional times, Gold has served as a highly beneficial and widely used borrowing product. Physical gold helps people to take loans against it by pledging an agreement with the bank or financial institution. Likewise, loan facility can also be availed by applications against Sovereign Gold Bonds (SGBs) as well. On the contrary, such kind of convenience is not being rendered by ETFs.
The age-old adage says; if you don't hold it, you don't own it and the same is very much relevant in this case. Physical gold renders that extra layer of security and protection which, other contemporary alternatives such as ETFs, SGBs and digital gold do not. Needless to say that these companies are unpredictable, unguarded and controlled by third parties. Significantly, the London Gold Exchange, a well-known ETF company closed their website way back in 2011 stating that they are winding up their business completely. However, in case of physical gold possession, you will not be affected directly as there will be no third party company or individual to oversee your wealth on behalf of you. Since it offers the highest level of tangibility to investors or possessors, it is you who holds it, solely responsible of and last but not the least, exercise full-fledged control of your own wealth.
Considering these three significant aforesaid points, it can be summed up that physical gold can serve as the most propitious mode of investment in gold compared to other options, especially for long-term investors with a conservative and risk-averting mindset. Now, if you are willing to try your luck into the dynamics of bullion market and planning to buy physical gold, then purchasing it from the bullion traders will be the most beneficial option to look for. Generally, they sell gold coins almost at the live gold rates and offer better buy back rates compared to jewellers. Moreover, since the trade of bullion traders mainly depends on the flow of buying and selling gold in bulk, it becomes a convenient option for them to work with a thin margin compared to banks and jewellers.
Diversification - The Key to Yield Steady Returns
Though physical gold is treasured as the safest haven in times of dire, it is not ideal to allot your entire investment or wealth portfolio into this single source of return. Physical gold certainly offers a new dimension to your portfolio, however, an ideal proportion should be set with due consideration to your individual financial objectives.
Spreading your investment across various potential instruments such as stocks, real estate, precious metals like gold and silver will undeniably serve as a prudent, defensive and low-risk way of managing the portfolio. Thus, the key mantra is; know about the contingencies associated, set your own stake limits, ascertain your objectives and evaluate each of the gold investment options available before making the right move.
Ever since the discovery of gold, it has always been an integral part of our lifestyle, ingrained deep into the roots of our history, culture, traditions and customs. Over time, the use of gold has also witnessed a series of paradigm shifts and not just merely used by people in the form of jewellery anymore. Considering the present global financial landscape, gold has evolved as a safe haven for investors and a highly secured and propitious option for hedging against inflation or a stock market crash.
Adhering the same, investing in gold has been considered one of the most thriving speculative options for people including both investors and individuals. However, the bullion market is literally bombarded by a myriad of investment options such as gold coins, digital gold, SGB and ETF. Thus, it becomes a requisite for investors to sharpen their analytical skills, knowledge and insights on these prospective options for making a worthy investment.
Investing in any type of physical gold option, especially gold coins offer full-fledged control to the investors. Having a hefty sum of gold coins can also serve to be highly advantageous for you in a state of disaster such as economic upheaval, where high inflation might destroy the value of paper currency. Another significant benefit of investing in gold coins is; it maintains a perfect relation with the market price of gold. Thus, it becomes simpler for investors to estimate the value of physical gold, thereby ensuring that its value is not influenced by various external factors.
On the contrary, while buying gold coins, investors miss out a huge portion of money for paying premium to the sellers which they charge for compensating against significant costs like minting, distribution and marketing. Investors also need a well-protected, safe place for storing gold coins. Ideally, one should not keep these in their homes, as doing so can make them prone to a plethora of risks including fire, theft or any kind of natural inconsistency. Moreover, gold coins are subjected to increased long-term capital gains compared to other financial investments including stocks.
Digital Gold Currency, abbreviated as DGC, is defined as an electronic form of money, backed by privately-held gold reserves in vaults. It was being introduced in the period of mid-1990s. Generally the DGC owners can transact with each other by using gold or in the form of currency units equivalent to gold, which was held in the physical form by the issuing company. All these exchanges or companies retain a physical reserve for getting a clear and unambiguous view of the client accounts.
Currently, it has been the most promising option for investing in gold because of its potential to remain uninfluenced during any sort of economic turmoil. Many of the regular Digital Gold investors consider this flourishing option to exhibit a strong level of endurance by remaining invulnerable to the risks associated with a single national economy. Since it is directly linked to a physical asset, DGC is robust enough to survive in times of economic turmoil. Adding to its potential, since it is not tied to the economic structure or monetary policy of any particular nation, it is also not influenced by any type of political upheaval.
In spite of being the 'Pretty penny' for investors, while rendering a high rate of liquidity, it has a list of disadvantages as well which, restrain people from considering it as an ideal investment. Being a loose network of digital currencies which is administered by private entities, Digital Gold hosts an extra layer of risk for buyers. The individual holding DGCs, which are being traded in an unregulated market poses a threat to security, which is triggered by ineffective administration. Thus, due to poor oversight, lack of transparency and slack security practices, this form of investment is not considered to be fruitful for the conservative investors.
Sovereign Gold Bonds (SGB)
Being another thriving option for gold investment, SGBs are issued by the Reserve Bank of India and enjoys holistic intervention of the Indian Government, thereby ensuring full-fledged safety and security. Alike physical gold, it offers returns to investors with due correlation with the current market price of gold. Investors can also deploy them as a collateral security for loans and even trade or sell them on stock exchanges.
These bonds serve as a sovereign guarantee as these are issued by the supreme of Indian Banking System, the RBI and are measured in grams of gold. The issuance of SGBs are directly related with the market borrowing programme of the Government for 2015-2016 and onwards. Risks associated with the gold price changes are being borne by the Gold Reserve Fund. What makes it a propitious investment option is its availability in the form of both demat and paper. The tenure of these bonds is fixed at a minimum of 5-7 years during which, the units can be liquidated anytime as per choice of the investors. The interest rate of SGBs are set by the Government with due consideration of the domestic and global market conditions and thus, it might differ from one tranche to another.
Exchange Traded Funds (ETFs)
Gold-backed Exchange Traded Funds are financial instruments, which comprise of units that are backed by physical gold and might appear in dematerialized or paper form. These are traded and listed on both the Bombay Stock Exchange and National Stock Exchange of India, where people can easily trade on gold ETFs. However, while selling the units in a gold-backed ETF, the investors will be able to draw cash and not physical gold.
Gold-backed ETF trading is conducted through a demat account and a broker, which helps investors to buy and sell the units electronically. These funds are being backed by around 99.5% rate of purity. Thus, investors generally face minimum or negligible risks associated with the gold purity of ETFs. Furthermore, the income earned on gold-backed ETFs are considered as a long-term capital gain because of which, it serves as a tax-efficient option for investors. It exhibits a host of other significant tax benefits including exemption on wealth tax, VAT, security transaction tax and sales tax.
Gold has drastically evolved as one of the key investment options which promises whopping returns. However, rich insights and knowledge are certainly necessary for drawing a clear conception on the various potential types of gold investment and determine which will be the most pertinent option to fulfill your financial objectives.
Being one of the most time-honored integral means of exchange, Gold - the Neolithic metal, discovered some twelve thousand years ago, continues to amaze human race with its ubiquitous appeal. A financial writer perhaps rightly conferred it the status of 'a psychological barometer of market sentiments'!
Tracing the Evolution
Before we actually dig into the relationship between the yellow metal and dollar, it is ideal to explore its historical significance in terms of backing centuries old world currency system:
Its resourcefulness in backing currencies dates back to the Byzantine Empire - the first ones to use its intrinsic value in order to support what is today's fiat money. In fact, almost the whole of 20th century flaunted the vitality of gold as a reserve currency, till the Bretton Woods agreement fell apart and United States under President Richard Nixon, renounced use of the gold standard against the value of dollar.
With this, the fiat currency evolved. Labeled as a legal tender by a government, its worth is dictated by the dynamics of demand and supply, without actually being backed by a physical commodity like gold. Since then, gold was left at the mercy of the floating exchange, making its value vulnerable to dollar price. Since then, the relationship between gold and dollar has literally inversed.
The Core Criterion
As per norms, when the value of dollar increases with respect to other currencies, the price of gold drops- in terms of dollar. This hints at the price of gold shooting up in other currencies. Therefore, with the price rise, demand suffers a setback. Similarly, with the fall of the dollar, other currencies experience appreciation, enhancing the probability to invest in gold. Way back in 2008, the International Monetary Fund gauged that gold price fluctuations between 2002-08 was proportionately equivalent to the change in the external value of dollar.
Interest rates too impact the relationship between dollar and gold. The incapability of gold to yield interest in itself makes it mandatory for the metal to compete against assets pledging high interests.
With ascension of interest rates, dollar invariably appreciates, leading to a fall in gold prices. Vice-versa, drop in interest rates leads to decline in the opportunity cost for hording gold, thus, motivating gold prices to rise.
Stricken by acute crisis, Fed undertook significantly bold rate cuts in 2008, pushing Fed Fund rates almost to the brink. On the contrary, gold prices, then, experienced an all time high of around $1900/oz.
The latest trend suggests, Fed is bent upon increasing rates further in order to strengthen the dollar, thus, foretelling a dismal future for gold prices ahead.
Having mentioned the possibilities, there may be times when both gold and dollar behave in a bizarre fashion- moving in tandem with each other. In case of global crisis, we might find respite in both dollar and gold considering their inherent ability to insulate us against crisis.
The Indian Context
Before we delve into the nitty-gritty of how weak rupee against dollar impacts gold price in India, we need to be aware of the fact that, Gold is usually priced in US dollars or Euro. Thus, for obvious reasons on the eve of a depreciating rupee, gold prices ought to rise.
In the current scenario, Gold prices have declined sharply in the US owing to the strengthening of dollar index under the stringent federal policy. Simultaneously, rise in US bond returns by almost 82 basis points in the previous year is naturally attracting investors towards lucrative bond yields abandoning developing economies like India.
Thus, for obvious reasons, this year rupee has not really fared well in terms of dollar - the globally acknowledged reserve currency today. Hence the chances of investing in gold appear bleak considering the low purchasing power.
This prognosticates a tough future for gold as of now, unless the economy manifests growth by the last quarter, motivating positive demand from India, as market analysts contemplate.
Gold is treasured by Indian families not only as a symbol of prosperity but also as a means that can offer unconditional security during lean times. This core idea motivates potential investors to bank upon the priceless metal as a prospective investment option since times immemorial.
Well, the common notion that suggests, owning substantial amount of gold can turn tables if capitalized at the right juncture, cannot be ruled out at all. But, bearing a rational outlook towards the risks and rewards is definitely recommended.
Venturing in gold boasts plethora of advantages making it one of the most valued elements possessed by an individual. Let us take a tour around the myriad prospects invariably associated with gold investments.
It is definitely a reasonable concern that physical form of the metal is prone to depreciation or loss in terms of theft or converting it into jewelry, as quite prevalent in India. In order to address investor sentiment and preserve the popularity of gold, Gold ETFs were introduced. This particular form of gold does not demand whooping investments, starting at just 500 through regular SIP in Gold FoFs. It might not seem to be worthwhile in the beginning, but, ensures immense growth potential in the long run.
Gold ETFs flaunt tax benefits and is conferred to be a non-equity. Defined by long term capital gains, one can expect to capitalize on the tax benefit after a yearlong investment. Gold fund can be redeemed as and when required.
Often the nature, attribute and value of gold and its ownership affect us psychologically; instilling in us a sense of confidence and making us feel powerful. Why not! After all it can serve as the only financial insurance on the eve of a range of personal, social, economic or political tragedies, supporting us in a way that no other investment alternatives can!
In India, Gold is not merely a piece of ornament or form of investment but has imprinted its roots deep into our culture and tradition. Being the harbinger of indulgence and prosperity, it is passed down to the successors as a token of legacy and treasured as a financial security in times of dire. However, it has been analyzed by eminent market researchers that due to the lack of proper insights and knowledge, people often end up selling their gold jewellery at irrelevant prices and incur substantial losses.
The Impeccable Route to Selling Gold for Cash
Since the ancient ages, the practice of selling gold for cash has been much prevalent in India, which helped people to convert the precious article into money. There is a myriad of options available for Indians when it comes to buying and selling gold ornaments. However, the banks do not buy back the gold bars, bullion or coins from the buyers once being sold by them. Thus, the ultimate option left for them is to sell their possessed gold to the jewellers or goldsmiths, who in turn, take advantage of the situation and deduct a major proportion of value in the name of melting charges, wastage charges and so on. Considering the scenario, following here are the crucial checkpoints to consider prior to selling gold jewellery.
Estimating the Final Worth
The gold jewellery is melted down for washing out all the impurities in it. Then after, the residual pure gold is being evaluated for assessing the final price of the gold. This entire process decreases the final gold price by a minimal rate of 4-6%. Thus, the refining, melting and making charges will be deducted from the cash to be received.
Checking its Purity
Before selling the jewellery, you should give pivotal focus to the process of checking whether its hallmarked or not, since it represents the degree of purity. In India, a piece of jewellery with a 916 hallmark states 91.6% purity for 22-carat gold. Thus, jewellers certainly prefer a 916 hallmarked gold jewellery piece compared to a non-hallmarked gold jewellery article due to lack of credibility of its purity.
Considering the Best Time to Sell
As per the law of demand and supply, the more people invest in a particular commodity, the more its price is likely to increase. As per the market principles and conventions, gold is usually more in demand when the economy seems to be unsteady since it is considered to be a secure and benign investment than other available options including stocks and shares.
Comparing the Market Reputation of Cash-for-Gold Companies
You can also consider the option of selling gold jewellery to the cash-for-gold firms. However, you should conduct an in-depth online research to evaluate their market reputation prior to it, which would further help in eliminating the firms you should avoid. While surfing online, try to check the unbiased reviews and comments about their service while going through the blogs and forums and ignore the paid adverts.
Retaining the Invoice
A jeweller with sound professional and ethical value would inquire for the purchase invoice or document before buying the gold jewellery piece from you in exchange for cash. In case you consider visiting the same shop from where you have purchased the ornament, the jeweller will be in no situation to question about its purity, as the particulars will be clearly mentioned in the purchase invoice.
The Final Piece of Advice
In context of the aforesaid key determinants, you must carve your expectations as per the reality. The jewellery you are trying to sell might be quite endearing and precious to you, however, it would be utter imprudent from your end if you expect it to sell at a price for something close to its buying price. Moreover, it will not be possible to sell the article at an appraised price for insurance purposes either as it depends on a series of variables including rarity, beauty and more. Thus, be rationalistic, be prudent and stay updated before you dive into the dynamics of selling gold jewellery for cash.
Purity is undeniably the most decisive factor for people all around the world when it comes to buying gold jewellery. Considering this fact, the concept of gold hallmarking has gained tremendous popularity and many Federal Governments around the globe has introduced a set of stringent and sustained standards to measure or discern the purity of gold.Following here is a comprehensive overview on Gold Hallmarking with the prime emphasis on its origin, connotations and its role in the Indian context.
Gold Hallmarking - An Introduction
Hallmarking serves as the precise determination and official documentation of proportionate content of gold present in precious gold articles. To make it more unambiguous, Hallmark is the official purity certification of a gold article with respect to national standard specifications.
Gold jewellery hallmarking was known to be the most archaic form of consumer protection, which dates back to the reign of Edward I of England and King Louis IX of France in 1200s. With the upsurge of craft guilds in these two major markets of the Middle Age Europe, the state-appointed metallurgists inspected the precious metals. Their prescribed marks along with the following marks for small-scale individual goldsmiths and production dates emerge as a necessity for the gold articles to be offered for public sale.
Who Provides the Hallmark in India
Bureau of Indian Standards (BIS) serves as the apex standard body of the nation. It is directly involved with the development of technical standards, management system and quality certifications along with consumer affairs concerning various aspects including certification, standardization and quality.
BIS hallmarking has been oriented to the International yardstick of hallmarking, mainly the Vienna Convention 1972, which states that; the license is granted to jewellers under the Product Certification Scheme by BIS. BIS certified jewellers are equipped with the right of hallmarking their jewellery from a BIS recognized Assaying and Hallmarking Centre in India.
Components of a Gold Hallmark
Gold Hallmark comprises of five key components naming the Fineness Number, BIS Mark, Assaying and Hallmarking Centre's Mark, Year of Marking (which is decided by BIS and depicted by a code letter) and Jeweller's Identification Mark. The Hallmarking is done by using either the laser marking machine or punches.
Being widely recognized and accepted as a mark of conformity, the BIS hallmark bequeaths additional confidence to consumers while judging purity of the gold jewellery.
How the Gold Hallmarking Process is Conducted
Considering the present scenario, the advanced and contemporary X-ray fluorescence technique is utilized for assaying or examining the finishing gold articles. This ensures a quick, automated and non-destructive printing by the computer. On the contrary, the 'cupellation' or 'fire assay' method might be used for examining gold in its crude form. This process is basically presided over when the jewellery or article is melted down for extracting the impurities out, which can be a bit destructive yet, highly effective. The examination takes place in any of the authorised Assaying and Hallmarking Centres (A&HMC) in India.
How the Hallmarking Scheme Works
Considering the specifics of the scheme, the jewellery manufacturer/retailer who is willing to obtain a license should apply for use of the Standard Mark (hallmark) to BIS on their jewellery articles. After the registration process, BIS administrators will conduct a primary inspection for authentication of premises manufacturing/retailing, competence of testing personnel and testing facilities. They will draw a sample from the manufacturing/retail premises of jewellers for conducting independent testing. Finally, the license is issued to the jeweller based on the test report of sample conducted during inspection and favorable primary inspection report.
BIS certified jewellers showcase a strong proof of their commitment towards quality and purity of gold jewellery. Thus, as a rational gold buyer, it is of paramount importance to look for gold hallmarking and check all the five marks by BIS whenever you consider buying gold. This will certainly help you attain full-fledged assurance and satisfaction for getting the exact purity of gold for the price being paid and ensure shield against victimization of unscrupulous gold purity/quality.
It has been long enough that the raging debate regarding physical gold versus ETFs (Gold Exchange-Traded Funds) has been making rounds in the investor circles. The emerging trend proves to be in favor of the latter considering potential future prospects that it bears.
It is in fact interesting to gauge how a new product from the equity market all of a sudden brought about an unexpected transition in the risk taking appetite of Indians -given to customary beliefs. Known across the globe for their fervor and rationale to maintain a considerable amount of savings in traditional gold, the Indian investor today makes a conscious effort to sway from conventions and embrace alternatives which might not commit security, but pledges high profits!
Anatomy and Physiology
Backed by physical gold, gold ETFs units are listed on an exchange, like the National Stock Exchange (NSE). There is a constant buying and selling procedure at the back end by certified individuals, who closely track spot prices in order to ensure gold prices match with the value of gold ETFs. They are responsible for creating the reserve of exchange traded fund.
The easiest way to delve into gold ETF transaction is by owning a demat account which can be converted to physical gold as and when needed, once it has exceeded a certain threshold of value. The value of ETFs constantly keeps oscillating as per the changing Bullion market of gold bars and the NAV is tracked accordingly.
Exempt from wealth tax, and qualifying for a long term capital gains benefit on holding for just a year, gold ETFs can be transacted at a brokerage of Rs 1 per lakh - a price way lower than equities and e-gold transactions.
On selling gold ETFs within a year, a person is charged on the basis of his regular tax slab which exceeds to 20% post indexation (tallying the value with current rate of inflation), on being sold after a year.
Gold ETFs are available on exchanges to be traded till 3.30 on a regular basis.
Ushering a new dawn...
Talking about the history, Gold Exchange Traded Funds was first introduced in Australia way back in 2003 simultaneously with the Gold Bullion Security launch. Ever since, it has gained significance in India as well as many other countries across the globe.
Introduced first by Benchmark Asset Management company in 2007, Gold BeEs was the first gold ETF in India which brought about a paradigm shift in the ideology of Indians- ranked as the top buyers of gold in the world. The innate attribute of ETFs being less volatile and its potential to beat inflation, has in a short while earned the faith of investors as an asset that pledges security.
Capitalizing on the ever expanding digital realm, in sync with the rapidly changing financial landscape, Paytm has introduced Paytm Digital Gold. Also referred to as Gold Accumulation Plan by the strategists, it is being claimed as a first of its kind investment initiative across the globe.
Functional Aspects Define the USP
Empowering us with its unique appeal, Paytm gold acts as a catalyst in multiplying personal gold reserves, with an added advantage of liquidating the accumulated stock at any point of time. Though price of each coin will be decided by its weight and exclusive design, one can select quantity and denomination of gold from among the options available on the platform.
Registered Paytm users are authorized to use their mobile wallets to purchase 24K 999.9 pure gold without basic caps on the amount and unlike the hefty lump sum required to stash gold in lockers. The incredible part is, with Paytm Gold Accumulation Plan or Gap, purchasing gold has become more affordable and one can buy it at as low as Re 1!
Talking about easy access, sensing the nerve of today's tech savvy generation, who tend to look up to fast - interactive apps and e kiosks for transactions, Paytm's initiative can prove to be instrumental in cultivating the savings aptitude.
Qualifies the Certification of Purity
Considering the fact that Paytm gold has the hallmark of LBMA (London Bullion Market Association)- the international trade congregation responsible for silver and gold bullion, etched on it, it reaffirms 99.99% purity in contrast to 24 Karat gold with 99.9% purity.
Protected and Provisioned Against Plausible Eventualities
As far as security is concerned, Paytm guarantees to vault your investment under 100% insured facilities against all odds. Collaboration with internationally accredited refinery MMTC-PAMP validates the credibility and purity of gold being offered.
Taking custody of your investment right from the instance you subscribe to GAP, MMTC-PAMP ensures, the ownership of your accumulated gold is not transferred to Paytm or MMTC-PAMP at any point. By offering robust security to your asset at no additional expense, it saves maintenance from burning a hole in your pocket.
An individual is allowed to store his accumulated deposit from multiple purchases for a maximum span of 5 years from the commencement of specific transactions. By the end of the tenure, one is expected to take charge of their own asset or sell it off to a local trader by ordering the stock at home. In case the final date expires, an addon charge is levied.
These unique attributes count up to manifest the relevance of investing in Paytm Digital Gold Scheme, a proven alternate to the conventional form of purchasing and trading the ever appreciating Gold!
With the prices rising high at an exponential trend and burning a hole in our pockets, Gold is certainly not considered as an easily accessible commodity. In the arena of gold trading, two terms which are being widely used are spot and futures gold. Thus, knowing what they actually imply is the elemental step en route to gold trading.
Here is a brief overview of these two key points which, would certainly help you understand the minute subtleties of gold trading.
Spot Gold: It refers to the genre of gold trading where gold is purchased on the spot i.e, on an immediate basis. The price is being fixed on an instant note with the cash and product being interchanged instantly.
Futures Gold: It refers to the genre of gold trading where the transaction takes place on a fixed date. But delivery of the product will be done in the near future at a mutually agreed date. To be more precise, it means you need to pay for the product now but, the delivery will be made in the near future.
The value of spot gold fluctuates rapidly as per the market changes which, significantly depends on a myriad of factors such as global trends, demand and supply, currency changes and many more. Spot gold is noted to be comparatively cheaper than futures gold price as there is no speculation or anticipation involved during the time of its purchase. Thus, it offers a clear view of the expected gains to the investors without making any sort of market predictions. On the contrary, the prices for futures gold are costlier, while considering the storage charges till the delivery date and other extra expenses incurred by the supplier.Here is a quick rundown on the basic points of distinction between Spot Gold and Futures Gold.
|Parameter||Spot Gold||Futures Gold|
|Price||Current Price.||Price is adjusted with respect to storage and delivery, thereby making it high-priced.|
|Delivery||Immediate Basis.||Delivery at an agreed date, generally after 2-3 months.|
|Price Settlement||Immediately at the point of trade.||Settlement takes place within a day or two after the contract is being signed.|
|Risks involved||Low risk, offering assured gains.||Moderate risk, where the gold price at the time of delivery might rise or decline, thereby leading to the profit or loss scenario.|
|State of Liquidity||High liquidity.||Restricted liquidity, considering the delay in delivery of gold.|
Apprehending the entire concept of trading on gold markets might seem almost like a Byzantine task a novice. However, noticing these crucial areas of differences will certainly help in laying the foundation of market analysis before making it an integral part of his investment portfolio.
Buying bullion can certainly serve as a safe refuge for investment and a rewarding way of diversifying the risks. However, it certainly needs a fair degree of knowledge, market insights, analytical precision and experience to invest in bullion trading skillfully and earn windfall gains like a real player. Considering the same, let's get started from the very scratch.
What is Bullion
Bullion is typically referred to a significant proportion of precious metals like gold, silver, palladium or platinum, which are being measured by weight and casted as bars. Both gold and silver can be bought and sold in the form of coins (however, palladium and platinum coins are comparatively rarer). Furthermore, gold can also be traded in the cast of small grains.
What are Bullion Coins
Bullion coins are typically formed of expensive metals and bought for earning feasible returns. Value of the coins mostly depends on the bullion content and the prices fluctuate on a significant note. Some of the popular options are the Canadian Maple Leaf, the British Sovereign, the South African Krugerrand and the American Golden Eagle.
Introducing the Bullion Market
The bullion market refers to the trading platform where buyers and sellers trade on gold and silver and its allied derivatives. The London bullion market is widely known to be the chief global bullion market for gold and silver. However, there are several other bullion markets penetrating in the genre which, are classified as over the counter markets. Some of the other notable bullion markets are present in Zurich, New York and Tokyo. Bullion market trading generally reflects a high turnover rate with the transactions being conducted by phone or electronically. The industrial use of gold and silver are considered to be the key drivers of the market for establishing the pricing of precious metals.
How the Bullion Market Works
The simple mantra being considered in the bullion trading process is; to purchase when the price is low and to sell it when the price is high. However, the market certainly doesn't exhibit any strong assurance of predictable returns. Precious metals are considered to be a long-term investment and in context to it, even if you get a random chance to buy during the period of a slight decline in prices, you cannot call every twist of the market while buying gold. Being a rational investor, you should keep this into consideration that the bullion trends generally drive on a different track in case of equities and to other crucial commodities. This in turn, works as a valuable hedging option for the losses incurred in other significant investment classes.
Upsurge of Bullion Market in the Indian Financial Landscape
Considering the global perspective, the number of bullions owned by a nation serves as a key indicator of its total wealth possession. Needless to say that; the Indian bullion market is strictly managed by our Federal Government. Until 1990, the possession of gold bars by the citizens was as per the legal implications of the Gold Control Act.
Though the picture has drastically changed since the post 90s, when the trading in small bars increased to a considerable extent both imported and locally made, which were being proliferated from the local refineries. During the period of mid 90s, people started using Gold as a way of veiling the riches when the value of local rupee increased steadily. This crucial investment in gold prices remained as an undisturbed territory in 1998 when around 40 tonnes of gold from bonds, which was being primarily issued by the RBI were being reimposed back to public.
With the gradual passage of time, Gold trading started competing with the investment in high-scale industries, stock market and a variety of durable consumer goods. However, the rural people still have a tendency to invest in 22 carat jewelry. To get strong hold over the hoarding of gold, our Government introduced a new proposal in the budget 1999-2000. This enabled the commercial banks to collect deposits in the form of coins, gold bars or jewelry against interest payments.Following here is a quick rundown on some of the key pointers that will help you get a glimpse of the present situation of Indian bullion market.
On a concluding note, it can be drawn that the Indian bullion market has certainly retained the position of serving as an ideal index for evaluating the financial growth of our nation despite of undergoing through a series of significant corrections and legal revisions.
India is experiencing a sudden frenzy of investing in Sovereign Gold Bonds. But, what is so phenomenal about these bonds that offer it a pedestal higher than the actual physical possession of gold?
Well, to start with, gold bought from banks or jewelers is obtained at a premium of around 10%, whereas a gold bond comes at a price of actual gold. Further, prudent investors capitalize on the exemption that sovereign gold is subjected to unlike physical gold- in case of which returns are completely taxable.
Capitalizing on the Sentiment
Every Indian parent segregates their savings in gold with the sole expectation of being able to endow their kids with prosperity during marriage. Therefore, considering the ever rising demand for gold jewelry in India, the capital market insures investors with their ideal offer.
Sovereign gold bonds encourage a saving discipline that helps your capital appreciate with time unlike high investments on getting jewelries made. Owing to the fact that trends are subject to fast transition, thus, it would hardly take time for your jewelry to go out of fashion leading you to a loss ranging from 6 to 14 % on making charges.
It also saves you the additional cost and hassle of securing them in a vault for which the banker charges a whooping amount.
Nitty-Gritty of Purchase
Investment on Sovereign gold bonds is can be pretty flexible. One can choose to invest from a minimum of 1 gm to a maximum of 500gms.
The bonds are restricted from being offered in the open market all year round. It is issued on intervals by the government. Primary issue of different tranches is put forth for open purchase. The deal is offered every 2-3 months, and the offer is open for a week. In case investors are bent upon purchasing gold bonds as and when they wish to, they are likely to be directed to earlier issues available at market value that are listed in the secondary market.
The fun of owning Sovereign Gold Bond is linked to the capital multiplying mechanism. Owning gold in physical form fetches you profit on selling without any added benefit, whereas gold bonds assures cent percent purity and helps you reap rewards in the form of additional accumulated interest besides the actual cost. Besides, your investment can act as a collateral, easing up the process of borrowing loans.
The interest fixed by the government per annum happens to be 2.50% at present without the compound factor. Interest is paid at half yearly intervals on a regular basis besides the last, which is paid at maturity along with the principal.
A Disclaimer before you take the final leap
Returns on Sovereign Gold Bonds are absolutely market linked and completely rests on the prevailing market rate at maturity after eight years.
In spite of the windfall returns and benefits Sovereign Gold Bonds promise, before taking a plunge with high hopes one has to ensure that the goal you wind to scale with the investment ought to be at least 5 years away from the initiation of term. Although the tenure of maturity is 8 years, 5 years is the minimum lock in period.
The reason for gold being cheap in Dubai than in India is simply due to the difference in taxation policies of the two countries. There is no import duty on gold in Dubai where-as there's a minimum of 10% import duty on gold in India. Additionally, a buyer in India has to pay 3% GST (Goods and Services Tax) on gold purchase which further increase the actual buying cost.
Gold rate in India is mainly driven by demand and supply of gold as we Indians generally prefer buying gold during festivals or marriage season as we consider it to be auspicious. Dubai being a world famous shopping destination has tourist across the world visiting the place through the year who generally end up buying atleast some amount of gold in the form of jewellery or souvenir and hence the demand is high yet consistent. The gold rate difference between Dubai and India is generally between 10% to 13%.
Akshaya Tritiya is considered to be one of the most auspicious day in Hindu religion. As gold is considered to be a sign of purity and prosperity it is believed that buying gold on Akshaya Tritiya brings good luck, wealth and prosperity to you and your family.
As per Hindu mythology it is believed that Sat-yug began on Akshaya Tritiya and sun shines the brightest on the day. Sat-yug is also considered to be the golden age among all four yugs. It is said that on this very day Lord Krishna handed over Draupadi a utensil which provided a never ending supply of food for Pandavas during their exile period.
Akshaya Tritiya also holds great importance in Jain community and it is an auspicious day for them as well; being associated with Lord Adinatha (Rishabhadeva) who was first of their twenty four Tirthankaras.
Apart from religious belief there's no such specific reason on why you should buy gold only on Akshaya Tritiya or on any other auspiciuos day. In-fact over the years it is been observed that gold rate increases a bit on Akshaya Tritiya than its previous day as excess buying creates a strong demand which pushed the gold rate northwards.
Also, check for historical data of gold rate on Akshaya Tritiya in the past few years.
Considered as pure and auspicious, gold in Indian culture has a special place. Gold is generally bought on auspicious days like Akshaya Tritiya or on big festivals like Diwali and Holi. Also, Indians do buy a lot of gold jewellery during marriage season as gift for the newly wed couple. Further, Indian women are known to be very much fond of gold jewellery which only adds to the long list of reasons for buying gold.
In India, wearing gold jewellery - especially in the rural part of the country is considered to be a sign of prosperity and one's social status. Based on the surveys and past available data it is been observed that a good monsoon season followed by a bumper crop impacts the gold jewellery business in a positive way increasing jewellery sales across the country by leaps and bounds.
While, the Indian middle class not just considers gold as auspicious but also trusts it as a safe invest for future. Bought as an investment from their savings, this gold jewellery is generally sold by them in future to fund their child's education, marriage, second home or for their own retirement plans. Middle class people in India generally buy gold in small quantities and mainly in the form of jewellery.
Buying gold jewellery as an investment is simply not advisable. But then, if you like wearing gold jewellery and plan to pass it on to your next generation or sell it only after using it for a longer period (5 to 10 years or more) of time - then definitely you are in for some descent returns. Of late people in India have increasing started buying gold coins on auspicious days instead of jewellery as they have now started understanding the benefits of doing so.
State level taxes, demand and supply of gold during festivals and marriage season, good or bad monsoon season, transportation charges, profit margins decided by the local gold jewellers association and the security cost involved are some of the major factors that affect gold rate in India at the local city market level. These are the reasons due to which gold rate in India is almost different in every city across the country.
Further, factors like dollar rate against the Indian rupee and import duty on gold (which is roughly around 10.35% in India) affects gold rate at the country level. Gold rate in the international market is the same for all countries and it is mainly the import duty that makes gold cheap or expensive in a particular country. For example, because Dubai (United Arab Emirates) literally has no import duty on gold we find buying gold in Dubai to be much cheaper against to that in India. For gold rate in Dubai click here.
While, at the international level factors like global gold production, economic health of the world's major economies (including India), possibility of war involving any major country or any similar global crisis does impacts the gold rate in the international market.
NO! You should not buy gold jewellery as an investment as it is the wrong way to invest in gold.
Gold jewellery price consists of a significant amount of jewellery making charges (plus 5% GST on making charges, additionally) which are lost when selling it back to the jewellers. When you are selling gold jewellery back to the jeweller only the gold amount is considered valuating it purely on the basis of quantity and karat quality of gold used in it. Added to that 0.3 to 0.5 grams worth gold price is further deducted from the final consideration as a gold loss which generally occurs when melting the jewellery piece. Finally, depending on the quality of gold used jewellers pay you roughly around 85% to 95% of the actual gold price only.
Buying 24 karat (999) gold coins or biscuits from the bullion traders shop is the best way to invest in gold. 24 karat (999 purity gold) is the purest quality of gold available in the market in the form of gold coins and biscuits. A gold coin has hardly any making charges and unlike gold jewellery there's no gold loss to be considered when selling it back. Most of these bullions traders have a good buy back policy and you should get around 97% to 99% of the actual market price when selling it back to them.
Further, to invest in gold you can also explore other available option like gold ETFs, Sovereign Gold Bonds (SGB) or PayTM Gold. But, if immediate liquidity (to cash) is one of your major investment criteria then we would advice you to stick around with the good old trusted method of buying physical gold.
You need PAN card to buy gold in India only if, you are buying gold or gold jewellery worth Rs.2,00,000 (two lakh rupees) or more and in cash. PAN card is not required if you are buying gold using your debit/credit card, bank cheque, demand draft or by using any online payment method.
Post demonetization this cash limit to buy gold was set to Rs.50,000 (fifty thousand rupees) only but was soon revised to Rs.2,00,000 as it impacted gold jewellery sales badly.
It was speculated that a lot of black money in India is being parked in gold and hence to counter it The Government of India decided to made PAN card a compulsion to keep a check on any such gold related cash transactions.
You need to pay 3% GST (Goods and Services Tax) on gold if you are buying a gold coin or a gold biscuit. But, if you are buying gold jewellery then you need to pay 3% GST on gold and 5% GST as gold jewellery making charges additionally.
Further, it's important to understand that GST is lost at the consumer end.
For example, if you buy gold worth Rs.1000 then you have to pay Rs.30 as 3% GST on it and your total bill amount will be Rs.1030/-. But, when you sell the same gold back to the jewellery (or to anyone else for that matter) and we assume that the gold rate remains unchanged then you will get back Rs.1000 only. The 3% Good and Services Tax that you paid while purchasing gold is lost at your (consumers) end.
Transparency is the key thing when making a gold jewellery purchase. You should not buy gold jewellery from any jeweller who is not willing or is uncomfortable sharing the above list of information with you.
We would recommend you to buy gold coins directly from the bullion traders shop. Bullion traders offer a good competitive price selling gold at much cheaper rate than the other available options like jewellery shops, banks selling gold coins or e-commerce websites selling gold online. Unlike banks and e-commerce websites bullion traders have a buy back policy and are also know to give good buy back rates as well.
If you are buying a good amount of gold (500 grams or more) from the trader, you can further negotiate on the gold rate offered to you. It is important to understand that bullion traders can afford to do business on small profit margins as gold buying and selling is their only business. Bullion traders need to trade in big volumes to make profits unlike jewellery shops, banks or e-commerce websites.
The term 'karat' is used for indicating the purity of gold. For example - 24 karat gold (99.9% pure gold), 22 gold karat (91.6% pure gold) and so on.
The term 'carat' is used for measuring the weight of diamonds. The lower denomination of carat is cents (1 carat = 100 cents).
Though in India the term 'carat' is loosely used instead of 'karat' to refer gold purity.
Gold rate in India differs across each city due to various local market factors like state taxes, demand and supply of gold in the local city market, gold transportation cost to the city market, security cost involved and the profit margin decided by the local jewellers association. Gold rate in city markets is changed twice a day and is been adjusted locally depending on the MCX and international gold rate changes to protect local jewellers and traders profit margin.
Gold rate decided by the local jewellers association is generally followed by the jewellers thought not always as it is not binding or a compulsion for them. Its been observed that in the case of a sudden drop in gold rate the benefits are not passed on to the customer immediately to protect their own (jewellers) profit margins but gold rates are increased immediately if the gold rate increases nationally or internationally.
Below is the Hallmark gold karat purity table based on the BIS Hallmark standards in India.
|Karat||Hallmark Standard||Purity of Gold|
|24 Karat||999||99.9% or higher|
In India gold is mainly found in Kolar and Raichur district (Hutti) in Karnataka and in Anantpur district of Andhra Pradesh.
India has 3 major gold fields. Gold is mainly mined from the Kolar gold field in the Kolar district of Karnataka, Hutti gold field in Raichur district of Karnataka and in Anantpur gold field of Anantpur district in Andhra Pradesh with the state of Karnataka being the largest producer of gold in India.
The main gold mine of Kolar is one of the deepest gold mines in the world and its production is decreasing day by day due to increasing gold extraction cost making it commercially unviable for mining companies while, Hutti mines are operating irregularly due to low grade ore issues.
Along with Kolar and Raichur (Hutti), some gold is also found in the Gadag field in Dharwad district while some new fields were been discovered in Ballara in the Tumkur district, Kempinkole in Hassan district, Honnoli in Shimoga district, Siddarhalli in Chikmagalur district and Munghur in the Gulbarga district of Karnataka.
The gold deposits in Anantapur district of Andhra Pradesh are almost exhausted as the main deposits of gold in Ramagiri are exploited to the maximum. In Andhra gold deposits are also found in Bisanattam and Palachchur of Chittoor district and in Jonnagiri of Kumool district.
Alluvial Gold Deposits
Alluvial gold is the type of gold which is found in the form of gold dust in soil, sand or gravel which needs to be panned or scooped from river beds or stream. Panning for gold has been one of the oldest ways of producing gold.
It is found in Jharkhand in the sands of Subarnarekha river, also know as 'Sona Nadi' in Singhbhum district and in the streams of Sonapat valley. Some native gold (gold in the form of alloys or single) is found in Lowa in the Singhbhum district and in some parts of Chota Nagpur plateau.
In Kerala alluvial gold is found in the river terraces of Punna Puzha and the Chabiyar Puzha. It is also found in Ambankadava Puzha, Chabiyar Puzha and in the rivers near Mannarkkat.
Lastly, small quantity of gold is known to be collected from the rivers in Shimla and Bilaspur in Himachal Pradesh, in alluvial and morainic deposits (glacier deposits) of Dras River in Jammu and Kashmir, terraces of the Indus River in Kargil area, Balaghat and in Seoni districts of Madhya Pradesh, Raipur Bastar, and Raigarh in Chhattisgarh and in some parts of Purulia district of West Bengal.
1 tola gold means 10 grams of gold. 'Tola' is an old Indian unit of weight, which at one point used to be an equivalent of 11.66 grams but now all gold jewellers in India consider 10 grams as 1 tola of gold.
Tola is a Vedic measure and a Sanskrit word. The term 'tola' is still very commonly used in the local gold jewellery markets of India, Bangladesh, Nepal, Pakistan, Singapore and United Arab Emirates.
We give you the latest 24 carat gold rate in India including the local market gold rate of 24 carat and 22 carat gold from Delhi, Mumbai, Chennai, Hyderabad, Bangalore and more such cities. We also provide you today's silver price and platinum price in the Indian market.
Now know the difference of gold rate in Dubai in Indian rupees compared to the latest gold rate in India. Also get today gold rate in Indian rupees for countries like Saudi Arabia, Qatar, Oman, Kuwait, Bahrain, Pakistan, Nepal, Bangladesh and Sri Lanka.
Explore our gold rate history section and understand the gold rate trends by analyzing the past data to help yourself make a wise decision when investing in gold.
India, a land of festivals and celebration - do not forget to have a look at this interesting feature on our website which give you historical data of gold rate on big festivals days like Diwali, Akshaya Tritiya and other such important days.
Now check for the latest gold rate in Hindi!
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