Gold Price in , India

How is hallmarked gold rate today in India determined?

Now, first the important thing is that there is no difference between normal gold rate and hallmarked gold rate. Nobody charges extra for giving you hallmarked gold rate. It is the same rate at which the normal gold is sold. The only difference is that you are ensured of purity when you buy normal gold. Hallmarked gold rate vs normal gold rate

1. There is no difference in gold prices
2. You are ensured of purity through hallmarking.
3. You have to take the precious metal to the essaying centres
4. Not many essaying centres are available in the market.
5. Some have advocated a stringent quality practice that has to established at the testing centres.
6. Still some way to reach the town and smaller cities.
7. Focus must be on swift expansion of the essaying centres so the smaller jewellers can make the best use of it.

The one thing that we need to mention is that hallmarked gold rates today in India do not differ in their pricing. What does differ is the quality of the precious metal. In any case what we advocate when you are buying is to buy into very high quality stuff. If there are no charges and difference between the two, it is better to stick to the quality hallmarked products. Investors have voiced their opinion on the poor number of hallmarking centres in the country and this needs to be addressed at the very earliest by the government of India. There is an urgent need to start more hallmarking centres, so quality gold is taken to all consumers in the country.

Gold as an Asset

Gold, the precious metal is one of the most sought-after assets during turbulent times. The investment in the precious metal has grown across the globe year on year basis. Since 2001, the metal has witnessed a growth of around 15% every year. The unique property of the jewellery metal of safe haven has renewed focus on effective risk management, since the financial crisis rocked the markets way back in 2008-2009. Gone are the days where in gold was used as an ornamental metal adorned by women during festivities and celebrations. The changing pace of economic growth has driven even institutional investors to invest in this asset which acts as a source of long – term returns. It also acts as a diversifier which negates losses during volatility in stock markets. The precious metal is one of the prominent liquid assets and it comes in handy at turbulent times. The yellow metal acts as a hedge against inflation and currency debasement. Apart from this, the metal outshines when equities and debt tumble in the stock markets. India which is the gold loving county has greater affinity towards the metal and has occupied second position when it comes to consumption globally. It has a dual nature as an investment option and a luxury good. The value of metal has grown phenomenally over the years and hence the metal is one of the safest bet to invest in as an asset.

How is gold price today in India per gram arrived at?

1. 1) Currency: If the rupee slides against the dollar gold prices in India per gram becomes expensive.
2. 2) International factors: These include volatile policies, slowing global economic growth, dollar strength against a basket of currencies.
3. 3) Global demand for the precious metal. Demand plays an important role in determining the gold rates today per gram in India. If the demand is not robust prices would fall. On the other hand in times of good demand prices of gold would gain.
4. 4) Interest rates: Not many know, but interest rate is a major factor that impact gold prices in India. When interest rates in major countries like the US go higher, gold rates fall and when they fall gold rates go higher.
5. 5) Government polices: Some time the government also discourages the consumption of gold. For example, this happens when prices are rising and the current account is swelling. These days the government discourages the use of gold, so as to ensure that there is no problems with the deficit. Already the nation has so much gold, what do you with so much that is already there.
6. 6) Prices: High gold prices today in India has also discouraged consumption in the country. Recently, the rates of gold in India ahs moved higher to as much as Rs 29,000 per 10 grams. However, the entire process is more complicated on how to arrive at gold prices in India, which we shall discuss in later passages of the article.

Who imports and how is 22 carat gold price in India determined?

India does not mine gold. In fact, places like Kolar in Karnataka, which once used to mine gold are now closed. So, India imports almost all of its gold requirements. We use imported gold prices to arrive at 22 carats gold price in India. There are a host of importers of gold into India. Most of these are some of the top government owned banks, private sector banks and also many private companies In fact, the list of private companies have also gone-up in the last many years. Take a look at some of the major imports of gold into India, who ultimately have a hand in fixing the gold prices in India for the wholesale gold rates in India.

1. 1) State Bank of India
2. 2) Bank of Baroda
3. 3) Union Bank of India
4. 4) Bank of India
5. 5) Punjab National Bank
6. 6) Yes Bank
7. 7) Minerals and Metal Trading Corporation of India

These are just a small part of the list of gold importers in the country. Once these importers import the gold, they add the component of import duties, VAT etc., and sell the same to some of the wholesalers, who then retail the same to the retailers in the country. Now, how the prices of gold is determined in India, is part of the jobs of the bullion association, who arrives at the live gold prices in India. Though we say live gold prices in India, they do not change very often during the day. Largely the imports take place based on the requirements of the imports. These days imports have gone much higher then they used to be in the past and the government is doing its utmost to curb imports of gold. However, it has not been that easy, given the fact that the desire for gold continue to be solid in India. However, gold demand has almost fallen flat in 2017 and it would be interesting to see where we are heading in the next few weeks. There has also been a concerted effort to largely discourage the use of gold. How far that would be successful is difficult to say. At the moment, we are having a number of schemes, that would help to curb the use of gold in the country.  Most of these schemes have their own advantages and disadvantages.

Sovereign Gold Bond Scheme: Should you invest in them?

If you are looking at physical gold as an investment, we suggest that you do not. Buying into Sovereign Gold Bonds is a better option, as it would eliminate many risks like theft, fraud etc. You can consider buying these gold bonds from one of the listed commercial banks in the country. These bonds gove you an interest rate of 2.75 per cent and are reedemable at the price stipulated by the RBI from time to time. You can also consider buying them from the Stock Holding Corporation and also from the post offices. Many investors suggest that we should not be buying the bonds, given that the interest earned is taxable. However, you get two benefits from them. One is the capital appreciation and the other is regular iinterest. So, both ways it is a win win situation for investors. The question that often arises is the liqudity in these bonds is very poor and hence you may not be able to sell large quantities.  The bonds are listed on the NSE and currently the price of these gold bonds is Rs 28,200 per 10 grams. These bonds are almost similar to gold ETFs in the sense that they track gold prices and hence the question that often arises is buying into them worth after all. Yes, the interest is lucrative considering that gold schemes in the country never offer you an interest unless they are some of the schemes of the popular jewelers in the country. It is better to get something out of your gold investments in India, rather then not getting anything out of it. We like the scheme because of its interest rates, while we dislike the scheme because of the lockin period. However, there is a liability that may arise in the case of taxes. So, in short this is not tax free income that would normally assume.