Gold is traditional and cultural in India. This precious metal represents the Wealth and prosperity of Indian households. From special occasions to a piece of regularly wearable jewelry, gold is always in demand in India. The best characteristic of gold is that it can easily get converted into money. This makes Gold an attractive financial asset.
However, professionals advise not to invest in gold jewelry as this jewelry is purchased and incurs additional charges. In this article, we will discuss the gold rate and other aspects of Gold in general.
Gold Rate: Today
The gold rates are different in different Indian states.The following table includes the price of gold in major cities in India –
| Gold rate | Bangalore | Chennai | Delhi | Hyderabad | Mumbai |
| 22 Carat (INR) | 4505 | 4534 | 4720 | 4505 | 4699 |
| 24 Carat (INR) | 4915 | 4946 | 5150 | 4915 | 4799 |
Gold rate in India: Last 7 days
The gold rate for the last 7 days is mentioned here-
| The year 2021 | Standard Gold 22 K (INR) | Pure Gold (INR) | 24K | |
| 1 Gram | 10 gram | 1 Gram | 10 gram | |
| 23 November | 4720.00/- | 47200/- | 5150/- | 51500/- |
| 22 November | 4789.00/- | 4789/- | 5224/- | 52400/- |
| 21 November | 4789.00/- | 47890/- | 5224/- | 52240/- |
| 20 November | 4790.00/- | 47900/- | 5225/- | 52250/- |
| 19 November | 4815.00/- | 48150/- | 5253/- | 52530/- |
| 18 November | 4905.00/- | 48050 | 5242/- | 52530/- |
Historical Price: Gold Rate
The historical prices for June, May, April, and March 2020 are mentioned in the article below-
| Gold Rates | 22 Carat (INR) | 24 Carat (INR) |
| Highest June Rate | 4725 | 4845 |
| Lowest June rate | 4500 | 4620 |
| Jun 30th rate | 4710 | 4830 |
| Highest May rate | 4656 | 4896 |
| Lowest May rate | 4165 | 4343 |
| May 31st Rate | 4571 | 4751 |
| Highest April Rate | 4207 | 4385 |
| Lowest April Rate | 4165 | 4343 |
| April 30th rate | 4165 | 4343 |
| Highest March Rate | 4207 | 4385 |
| Lowest March rate | 4051 | 4239 |
| March 31st rate | 4207 | 4385 |
| Highest February Rate | 4051 | 4239 |
| Lowest February Rate | 3812 | 3990 |
| Feb 29th rate | 4051 | 4239 |
| Highest January rate | 3815 | 3993 |
| Lowest January rate | 3698 | 3876 |
| Rate on Jan 31st | 3812 | 3990 |
The Love for gold in India
India’s traditional and cultural values are connected to gold. Gold represents the everlasting cultural heritage of this country. Gold is respected and is considered valuable. Indian women prefer wearing gold. The Indian Gold Market is always filled with new designs and patterns.
Buying Gold: India
If you want to buy gold in India, it is very easy. You can purchase gold for yourself from any Shop, whether it is big or small. There are three types of gold you can buy in India, standard 22 K gold, Medium 23 K gold, and pure 24 K gold. Before visiting any shop, you check the gold prices on google.
What Can You Buy?
There are a lot of options that you can buy from. You can buy gold earrings, necklaces, bangles, etc. These gold jewelry can be heavy or light. You can buy intricate or simple works of Gold.
Gold Price Factors: Determination of Gold Price in India
Gold is valued a lot in India. Every culture regards it as precious. In festivals like Diwali, people buy Gold to pray for property and wealth. The Gold rate keeps changing in India. Many factors affect its rate in India.
Global Politics
One of the most important reasons is the geopolitical scenario. Global politics affects the gold prices in India as most of the gold is imported in India. One such example is the Presidential election in America which resulted in the price-surges of Gold. It was due to the better performance of equity shares.
Later, the possibility was that there would be price fluctuation in the financial market, this became the reason for the gold prices to rise again.
Global currencies
Global Currencies also play a major role in the price of Gold in India. The most important currency for India’s gold market is the US dollar. When the price of USD rises across the globe, the prices of Gold in India go down.
The Gold rate depends on the Indian rupee as well. If you want to buy Gold at reasonable prices, then you should keep a track of gold prices in India.
Global Changes and Gold Rate
Gold is a precious metal that is valuable across the globe. The price of this metal affects and influences the gold prices in India. India imports gold from other countries, the change in the prices of Gold across the world affects the import rate of Gold in the Country. It can be said that the gold prices in India are directly related to the import charges of Gold in the country.
The Gold Reserves
The Central Bank plays a crucial role in deciding the gold rate in India. You may be aware that every country has a centralized bank, these banks store precious metals including gold and other currencies for future use. The Reserve Bank of India also practices the same method. When these banks hold more gold, the prices of the gold surge.
Overall Demand
Consumer demands also affect gold prices. The consumer demand for gold is mostly higher in festive and wedding seasons. In case of high demand and low supply, the imbalance in Demand and supply chain causes the rate of Gold to rise.
Inflation
Due to the high consumer demands, the inflation in gold rates is high. The demand directly affects the gold rate making it rise or dip.
These are some of the common factors which affect the gold rate in India. There are other factors too that affect gold prices across the world. The value of Gold in India has never faded. The gold price for today will depend on the performance of the financial market.
Hallmarked Gold In India: Price
There is not any significant difference between normal gold and hallmarked gold. The only difference is, a hallmarked gold guarantees the quality of gold whereas the guarantee for a normal gold can not be assessed. There are no additional charges while buying hallmarked gold. When buying gold, it is advisable to go for the quality.
Thus, hallmarked gold is the best investment in India. Normal gold does not provide quality equal to a hallmarked gold. However, a common concern is that there is a smaller number of hallmarked gold providers. The increase in the hallmarked gold center can increase the quality supply of gold and curb any metal mixing.
Gold Rate: Today’s determining Factors
The Gold rate in India is determined by the following factors-
- Currency: If the Indian rupee falls in value against the USD, the rates of gold rise.
- International factors: In case of a slow economy, and volatile market policies, UDS rate rise affect the gold rate in India
- Global Demand: If the consumer demand for gold rises globally, the price of gold will also rise and the opposite is also correct.
- Government Policies: Sometimes, the government influences the gold prices directly. For instance, in the case of high gold prices, investment is not encouraged. By doing this, the government manages the deficit rate.
- Price: Gold is costly in India. This manages the consumption rate of gold in our country. The price of gold in India has increased significantly.
22-Karat Gold Price: Price Determination and Import
At present, India does not mine any gold. Gold mines in India have been closed. The import of gold fulfills our gold requirements.
The gold rate in India was decided by the imported 22-Karat Gold. The wholesale price of Gold in our country is determined by Private banks, government banks, and other financial institutions together.
While importing gold from other countries, India has to pay import duty, VAT, and other charges. Then the imported gold is sold to wholesalers which in return sell this gold to retailers. The gold rate in India is decided by the Bullion association. Gold prices remain stable during the day.
QE impact on Gold Rate in India
QE means Quantitative easing. QE also affects the gold rate in India. Under QE,to enhance consumption in the financial market, the money supply is done. This extra supply of money in the financial market is invested in Global gold investment tools. This helps the gold rate to rise.
The gold rate in India is affected by QE. This affects all the inclusive rates of Indian gold. QE is not occurring much across the world these days. The US has completed its QE phase and now other countries such as European countries and Japan are easing through their central bank.
In case of any liquidity problem, the rates of gold can fall and there is a low possibility of QE to occur. There are other elements along with the QE which affect or result in gold rallying. In case the QE is taken out of the market, the price of gold will fall across the globe. The US is done with its QE and it can result in the gold rate changes in India.
Gold Demand: In 2017 around 15%
The gold demand in India has increased by 15% in the starting quarter of the financial year (123.5 tonnes). There are signs of positive returns in Gold. If we compare this gold rate with the previous year, the total consumer demand for gold was around 107.3 tonnes. It was also influenced by the strikes of jewelers over excise duty introduction.
According to the estimation of the World Gold Council, the consumer demand for gold has increased by 18%. In the first quarter, it was INR 32,420 Crore, which was 27,540 in the first quarter of the year 2016. Here is an overview of the gold rate fluctuation over time-
| Gold Demand | Year-wise Increase | |
| Subject | 2016 | 2017 |
| Jewelry demand | 79.8 tonnes | 16% rise at 92.3 tonnes |
| Vale of Jewelry demand | 20,484 crores | 24,220 crores with an 18% hike |
| Value term Gold Investment Demand | 7050 crore | 8,200 crore, 16% hike |
| Recycling | 14 tonnes | 3 % hike to 14.5 tonnes |
| Import between January and march in the year 2017 | 127.4 tonnes | Hiked by 112% to 270.1 tonnes |
Gold Investment: Good option In India
There are many gold investments in India that you can select from. But before making an investment decision in the gold market, you must know a few things. The investment comes with financial risks. This is why it is important to know why you want to invest in the gold market. Investment goals can help you clear many doubts about your gold investment. Also, check the tax liability and other investment instruments.
Learn basic aspects about the gold market and gold investment. Gold Trading has become one of the trendiest investment options. The scope and arena have expanded over time. It has become one of the most popular investment assets in the Indian Market.
Although there was a stagger at the beginning phase, professionals believe that it is passing its transition phase. This will help gold investors to earn profit from their investment. Here are some Investment options that you can use for gold investment –
- Gold jewelry: gold jewelry is a common existence in India irrespective of the social status of people. One of the most effective ways to invest in Gold is to buy gold jewelry. People in India invest in gold during festive and wedding seasons.
However, one drawback of this practice is that while buying gold jewelry, it comes with additional charges. So, at the time of selling your gold, you may get a low gold price. This includes the making price of the gold jewelry if you sell your gold to the same gold merchant.
- Gold Coins and Gold Bars: The investment in gold coins and gold bars are getting popular in India. But be careful while buying gold bars and other gold-related accessories. Buy them from authorized institutions like banks or jewelers.
The only difference between a jeweler and a bank is, you can purchase from a bank but can not sell your gold to the bank again. However, you can sell your gold to any jeweler. Remember that gold prices are never going to remain constant.
- Gold ETF: The gold ETF stands for gold exchange-traded funds. It is a type of Mutual fund that allows investors to invest in Gold. You can purchase its unit from the exchange market via demat. There will be a brokerage fee and fund management fee.
Sovereign Gold Bond Scheme Investment
If you are looking for an investment opportunity in Physical gold, you should consider the present price rate. Sovereign gold bonds are a good investment option for gold investors. Investing in an SGB saves you from many risk factors namely fraud and theft. You should buy these gold bonds from prestigious commercial banks.
The interest rate is nominal in gold bonds (around 2.75). This interest rate can be redeemed as specified by RBI. You can purchase an SGB scheme in post offices and Stock holding corporations. The interest earned in these gold bonds is liable to taxation. But there are two benefits of the SGB scheme namely regular interest benefits and capital appreciation. One disadvantage of the SGB scheme is its lock-in period.
Physical Gold vs Sovereign Gold Bonds vs Gold ETFs
These three investment tools are available for gold investment in India, here are some of the basic features of these three-
| Physical Gold | Sovereign Gold Bonds | Gold ETFs | |
| Storage | Storage related issues | No storage concerns | Electronic gold |
| Interest | No interest | Some interest benefits offered by RBI | No interest rate benefits |
| Safety | Needs a safe place to store | No safety concerns | No safety concerns |
Factors that influence the gold rate in India
Many factors influence the gold price in India positively or negatively. Some of these factors are explained below –
GST on Gold
Due to GST, there is a 3% hike in the gold rate. Since the tax applied, a buyer will have to pay an additional 3.24 to purchase gold jewelry.
Interest Rate
The interest rates on different financial products and services affect the gold rate in India. The supply of gold directly affects the prices of gold in India.
Government gold reserves
Central banks can store precious metals like gold for future use. This is done to keep balance in the financial market and for financial emergency needs.
Global movement
India is one of the largest importers of gold and the global movement directly influences the gold rate in India.
Gold buying options available in India
Different buying options for gold are available in India. Physical gold is available for the buyers in its pure form, 22 karats, and 18 karat gold is also available for the buyers to purchase from.
Some of the options to buy gold in India-
Jewelry- These are the most common ways to buy gold in India. It is the safest way to assure the quality of Gold. There are additional charges for making the jewelry.
Gold Coins- You can buy gold coins from banks in India. Also, buyers can buy historic gold coins that have high price value. RBI handles matters in this regard.
Gold Bars- Gold bars can be purchased via authorized institutions only.
Gold Trading in India
Gold trading has become popular in India recently. It is used as a commodity in commodity exchanges of India. There are three commodity exchanges in India-
- Multi commodity exchange of India Ltd.
- National commodity and derivative exchange
- National Multi commodity exchange of India Ltd.
You can trade through any of these three commodities that are available across India. An electronic mode of transactions is also available for traders.
How to sell gold in India
You have to keep a few points in mind before selling gold in the market –
- Invoice: while buying gold jewelry, keep the original receipt with you. This will fetch you the highest price for your jewelry
- Get your gold evaluated: Before selling your gold, evaluate how much your gold costs. Evaluate it three to four times
- Check the purity: Get your gold item hallmarked for quality purposes. Keep tracking the gold rate concerning the purity of gold.
- Sell at authorized shops: Sell your gold accessories at authorized shops to receive a fair price,
Check Purity of Gold in India
If you are thinking of investing in gold, before buying, keep these important points in mind-
- Hallmark: hallmark is a stamp used on pure gold. Hallmarked jewelry and coins are available at authorized shops in India. Check the hallmark before buying any gold-related item.
- BIS Mark: BIS has also been used to assess the purity of the gold item. This will be available on every legal gold item.
- Discoloration: Look for any discoloration while purchasing a gold accessory.
- Magnet: Gold does not have magnetic properties, to check the purity of gold, you can check it with a magnet.
Always buy gold from authorized institutions such as banks and gold retailers.
Gold Rate – FAQs
Q1. What is the difference between 24k gold and 22k gold?
Ans. 24k gold is the purest form of gold which is not mixed with any other metal. 22k gold is ideal for making jewelry. 24k gold is hard to bend in its pure form.
Q2. How does the gold rate move across the world?
Ans. Given factors that affect the movement of the gold across the globe-
- Demand and supply of Gold
- Global Production of Gold
- Jewelry and Industrial Usage of Gold
- Government gold reserves
- Economic instability
These major factors affect the gold movement in the global gold market.
Q3. Are the gold rates the same across India?
Ans. No, the gold rates are not the same across India. There are some factors such as gold association, import duty, and expenses that affect gold prices.
Q4. How to purchase Gold Bullion?
Ans. You can purchase gold bullion in the form of coins and gold bars. These coins and bars do not provide interest to the investors.
Q5. How much is 1 tola Gold?
Ans. 1 tola is a measuring unit that weighs the value of gold. At present time 1 Tola gold is equal to 11.66 grams.
Q6. Is it secure if I buy gold on Paytm?
Ans. Yes, buying gold via Paytm is safe. This gold is digital and can be sold anytime by the buyer. You can purchase gold in gram value or currency value on this platform.