Gold Rate in India- Should we invest in gold?


India is the country in the world where gold is consumed the most. Here people also make and wear gold jewelry and ornaments and also choose gold for investment. According to an estimate, a quarter of the world’s total gold consumption is consumed in India.

Know about Gold Rate in India Today

Even today, small villages – land for investment in the countryside – after property, the second choice of people is gold, whether it is to make jewelery or to buy gold coins as a tradition on any festival and keep it in the house. People like to invest in gold because they believe that in case of any natural calamity, if they cannot take anything with them and they have to leave the house, then at least they should take the gold coins they have bought along with them. Even today, many people prefer to invest in gold by thinking of this.

However, if we talk about the return, then gold has not given any special return, except for the time after Corona, there was no significant change in the rate of gold for the last several years, it used to roam between Rs 30,000 to 32000.

gold rate in india

But since Corona, there has been a good jump in the price of gold and now its price remains above 40-42 thousand.

Although the rates of gold keep changing daily, the fluctuations in the rate of gold depend on many reasons.

 There are some reasons like demand and supply, global market conditions, change in currency (currency fluctuations) etc. You must have often heard that when the stock market declines, people withdraw money from there and start investing in gold.

Historical Gold Price in India in last one year

Month (Lowest Price 24 Karat Gold – ₹ Per 10 Grams) (Highest Price 24 Karat Gold – ₹ Per 10 Grams)
April 202247,80052,140
March 202250,95054,330
February 202248,98051,550
January 202248,39049,860
December 202149,65048,340
November 202150,07048,760
October 202147,24048,970
September 202146,87048,390
August 202147,19051,430
July 202147,92051,710
June 202147,71052,650
May 202147,00051,000
April 202140,42050,860
March 202145,39049,310
February 202149,27052,320
January 202149,58054,710

Hallmarked Gold Gold prices in India

While buying gold, it is often advised to buy hallmarked gold. In fact, there is no difference between the price of gold and the price of gold with Holmark, Holmark only tells how pure your gold is, that is, how many impurities are there in it. Depending on the impurities available in gold, different hallmarks are put on gold, which determines their value.

For example, 24 carat gold is considered the purest, so it has the highest price, this gold mostly comes in gold coins and gold biscuits.

After that comes 22 carat gold, which has more impurities than 24 carat gold and its price is also less than that, it is mostly used in making jewellery. Apart from this, there are also below 20 carat, 18 carat, etc., which have a lot of impurities and their price (gold price in India) is also less than them.

(Some of the factors that determine Gold Prices)

Interest Rates

Interest rates play an important role in the rise and fall in the price of gold, whenever the FED announces an increase in its interest rate in America, it has an effect on the whole world. goes.

Global Factors

There are many reasons under the global factor, due to which the price of gold fluctuates, such as the price of gold increases when the war starts, the price of gold rises when the world’s stock market falls, during a major epidemic like corona. The price of gold had reached its all-time high in India. Global politics and economy also affect the price of gold.

Currency – Whenever the Indian rupee weakens against the foreign currency dollar, then the price of gold is seen rising.

Global Demand- Demand and supply also affects the price of gold, if the demand for gold in the global market is high and supply is low, then the price of gold will increase due to high demand, due to which the prices of gold in India also (Gold price in India) will jump in

Gold Import in India

As we know, there is a lot of gold consumption in India, India used to import gold from outside to meet its needs.

Although gold is produced from some places in India too, but now either they have stopped or very little amount of gold comes out from there. Which is not enough to meet the needs of the country.

Import of gold in India is done by some private companies, some government and private banks, the main ones are – State bank of India, Bank of Baroda, Punjab National Bank, Bank of India, Yes Bank, Union bank of India, Minerals and Metal Trading Corporation of India etc.

How much gold can you bring with you from outside?

According to Indian rules, any male traveler can bring gold worth up to Rs 50,000 from outside (foreign), while a female passenger can bring gold up to Rs 1 lakh with him. But under the rule, a trader can bring a maximum of 1 kg of gold from outside, but you will have to pay a fee on it, which will be done on the basis of the price of gold and its value at that time.

Gold demand in India

Gold has always been the choice of the people in India. In the last few years, the demand for gold has seen a lot more. But now instead of buying gold directly from the market, people have the facility to invest in Gold ETF and E-Gold and people are gradually adopting it too.

Sovereign Gold Bond Scheme

By buying and keeping gold in the house, there is a risk of it being stolen, if you want to invest in gold, then under a scheme of the Government of India, you can invest in gold through the Sovereign Gold Bond Scheme. Interest of up to 2.75 percent is also given.

The price of Sovereign Gold Bond is completely decided by the Reserve Bank of India. If you want to buy it then you can buy it from post office or some commercial banks. Or you can also invest in it online, if you have a demat account then you can buy it from there as well.

However, the interest rate you get from Sovereign Gold Bond is taxed separately.

Storing Gold in India

After the purchase of gold, there is always a risk of it being stolen, so if you do not keep it in the house, then where to keep it? Many people prefer to keep gold in a bank locker instead of at home, although it is a bit expensive to take the facility of a bank locker, but still it can be taken for the safety of their valuables.

Apart from this, if you do not buy gold physically, you can also buy it in electronic form through ETF.

 Some important information related to gold

China is the largest gold producing country in the world.

How to buy gold coins

While buying gold coins, it is most important that its purity is revealed by the hallmark on it, but gold coins are sold in the market without a hallmark. You can also contact the bank directly to buy gold coins, some banks sell gold coins.

Due to different prices of gold in different cities (Gold Rate is Different in Different Cities in India)

Often you will see the difference in the prices of gold in different cities, let’s know the reason behind them.

Demand: Due to different population size and population of different regions, the demand for gold also varies. Discounts are usually offered for larger quantities. Hence, given the large volume of transactions, gold prices are lower in cities like Mumbai.

Taxes: All state governments impose tax on gold, some governments charge more tax and some less, due to which you will also see the difference in gold prices in different cities.

Carriage: Most of the gold in India is imported through the sea, which reaches the port, then it reaches different cities, due to which the prices of gold near the port are cheap and from there to the faraway areas. The difference in the price of gold is found even on the go.

Local associations: There is a separate organization of people doing gold business in all the cities and sometimes due to their mutual collusion also difference in the price of gold is found.

Gold Measurements

The measurement of gold is done in grams, tola and troy. In some small villages and towns, the word “Bhari” is also used for the measurement of gold, which is known as Tola in most areas. 1 Tola is equal to 11.66 grams. happens |

In the olden days, people use a coin to measure gold, which weighed 11.66 grams, the same amount of gold is measured, which was called 1 Tola gold. In many places people still use the word Tola in colloquial language.

Troy is used to measure large quantities of gold, for this different units are used such as – Troy ounces, million ounces, grams, kilograms, tones, short tone, metric tones etc.

Difference between Carat and Karat

Carat – A carat is a unit of measurement of precious gems, which is often used to measure diamonds, pearls, etc. 200 mg or 0.2 grams is a metric Karat. Often people mistake this as the unit of measurement for size. Carats are written in short form as ct.

Karat: Carat is a unit of measuring the purity of gold, in which 24 karat means completely pure gold, it is considered ‘kinda flexible’, due to which there is a fear of breaking when making thin jewellery. Therefore, 22 carat gold is used to make jewelery, in which 22 parts are gold and 2 parts copper is mixed to strengthen it. Karat is denoted by kt in short form.

Difference Between 22k and 24k Gold

24 karat gold contains 99.9% gold which is considered completely pure or pure gold while 22 karat gold contains 91.67% of the rest of the alloy mixed in it.

Due to higher purity in 24 karat gold, its price is more than 22 karat but most people use 22 karat gold for jewelery because it is stronger. But the import duty on 24 karat gold seems less as compared to 22 karat gold.

Demand for Gold in India

India is at the forefront of the world in the consumption of gold, here most of the consumption is done in making jewelery, after which a large number of people also invest in gold, due to which the demand for gold always remains. China is second in terms of consumption, but most of that gold is used in the industry, while in India very little gold is used in the industry.

There is very little gold production in India domestically, gold was produced in India for a long time from the Kolar mines in Karnataka, according to a report, gold is being extracted from there since the time of the British but Right now, due to the extreme depth of that Kolar mine, the cost of extracting gold has increased a lot, so production has been stopped there. Recently a film was also made on the condition of laborers in this Kolar Mines, KGF Movie which became very popular.

Due to the high demand for gold, India imports a large amount of gold from other countries. India is the second largest importer of gold after crude oil. But due to the negative impact on the economy due to this, the government is keeping an eye on it.

Indian gold reserves

In India, a large amount of gold is kept with the Reserve Bank, in order to keep the Indian economy strong in the right way, any country can press as much currency as the valuation of gold it has. If a country prints its currency in large quantities, then the value of its currency constantly falls, due to which its economy is in danger.

Therefore, to maintain the valuation of the currency at the global level, the country should have that much gold reserve.

Taxes on Gold in India

Most of the gold in India is imported from outside, on which the government levies customs duty. The customs duty payable on gold is 10% of the total value of gold. Apart from this, if you get purchased gold jewelery made, then 5% GST is charged separately on making it.

According to the central government, while buying jewelry, customers will have to pay only weight-wise price, making charge and 3% GST, apart from this no charge will be levied.

Income Tax on Gold

The government has imposed a tax on both the buying and selling of gold.

Disclaimer:  makes no guarantee or warranty on the accuracy of the data provided on this site, the prevailing rates are susceptible to change with Market value and provided on an as-is basis. Nothing contained herein is intended or shall be deemed to be investment advice, implied or otherwise. We accept no liability for any loss arising from the use of the data contained on this website.

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