Gold holds a cherished place in India, revered for its intrinsic beauty, cultural significance, and as a top-tier investment option. Despite fluctuating prices, it remains a cornerstone in jewelry, art, and collectible coins, valued for its timeless allure. Understanding gold pricing is crucial; influenced by global market trends and currency fluctuations, rates can vary significantly across Indian cities due to local supply and demand dynamics. For investors, discerning between 24-carat (pure gold) and 22-carat (alloyed with metals like silver or copper) gold is essential. Explore current gold rates in India with us to empower your investment decisions with accurate and timely information.
Gram | 24K Gold | 22K Gold | 18K Gold |
|---|---|---|---|
| 1 gm | ₹7,822.44 | ₹7,170.57 | ₹5,866.83 |
| 8 gm | ₹62,579.54 | ₹57,364.58 | ₹46,934.65 |
| 10 gm | ₹78,224.42 | ₹71,705.72 | ₹58,668.32 |
| 100 gm | ₹7,82,244.21 | ₹7,17,057.19 | ₹5,86,683.15 |
| 1000 gm | ₹78,22,442.06 | ₹71,70,571.89 | ₹58,66,831.54 |
Date | Rate | Change in % |
|---|
The introduction of the Goods and Services Tax (GST) has significantly impacted gold prices in India. Prior to GST, gold purchases were subject to various state taxes, VAT, and service taxes, leading to inconsistent pricing across different regions. The implementation of GST has streamlined the tax structure, making it more uniform and transparent across the country.
Under the GST regime, gold jewellery and coins are taxed at a rate of 3%. Additionally, a 5% GST is levied on the making charges for gold jewellery, which adds to the overall cost for consumers. This uniform tax rate replaced the earlier system where multiple taxes were imposed, simplifying the taxation process but also slightly increasing the overall cost of gold.
Moreover, the customs duty on imported gold bars was raised to 15%, further impacting the price of gold in India. This customs duty, along with the GST, contributes to the final price that consumers pay for gold.
Parameter | 22k Gold | 24k Gold |
|---|---|---|
| Purity | This type of gold is 91.67% pure, meaning it contains 22 parts gold and 2 parts other metals (like zinc, nickel, or copper) out of a total of 24 parts. | Known as pure gold, it is 99.9% pure with almost no other metals mixed in. It consists entirely of gold, making it the highest purity level available. |
| Purpose | It is primarily used for making jewellery and other gold articles. The addition of other metals enhances its durability, making it suitable for everyday wear. | Due to its softness and high purity, 24k gold is more suited for investment purposes rather than daily wear jewellery. It's less durable and more prone to bending or scratching. |
| Price | Generally priced lower than 24k gold because it contains less pure gold and more alloy metals. | Commands the highest price among all gold qualities due to its purity and rarity. |
| Usage | Besides jewellery, it's used in crafting various gold articles and ornaments. | Apart from jewellery, it finds applications in industries such as electronics (for its conductivity) and medical equipment (for its biocompatibility). |
| Durability | More durable than 24k gold due to the alloying with other metals. These metals improve its strength and resistance to wear and tear. | Less durable because it lacks alloying metals. It's susceptible to scratches and bending, limiting its use in everyday items. |
Aspect | KDM Gold | Hallmark Gold |
|---|---|---|
| Purity | Typically 92% pure gold alloyed with 8% cadmium. | Available in purities like 958 (23 karat), 916 (22 karat), 875 (21 karat), and 750 (18 karat). |
| Certification | Not hallmarked; purity not officially certified. | Certified by recognised authorities like BIS, with a hallmark stamp indicating purity level. |
| Value | Generally less valuable due to uncertified purity. | Considered more valuable due to guaranteed purity, commands a higher price in the market. |
| Durability | Known for durability and strength, suitable for intricate designs. | Varies based on purity but is generally durable; and suitable for both everyday wear and intricate designs. |
| Price Difference | Can be less expensive compared to hallmark gold due to lower certification and perceived value. | Usually more expensive due to guaranteed purity; prices vary based on purity and market demand. |
Gold prices in India are established through a largely informal process, without a single authoritative body dictating rates. While international gold prices influence Indian rates, they are not identical due to various local factors. The Indian Bullion Jewellers Association (IBJA) plays a crucial role in determining daily gold prices. Comprised of the largest gold dealers across the country, the IBJA represents nearly the entire legal gold market in India.
Gold is primarily imported by banks, which then supply it to bullion dealers nationwide, adding a fee to the import cost. The IBJA sets the daily gold rate by consulting the ten largest gold dealers in India, who provide their 'buy' and 'sell' quotes based on their purchase rates. The IBJA calculates the average of these quotes and adjusts for local taxes to fix the day's gold price.
Dealers derive their 'buy' and 'sell' rates by considering the international gold price, the rupee exchange rate, and additional import duties and taxes. They also add their margins to cover costs and ensure profitability. This process ensures that Indian gold prices align with international trends, allowing customers to purchase gold confidently, knowing the rates are fair and transparent.
Physical Gold: Purchase jewellery, coins, or bars to own tangible assets. Ensure secure storage and verify purity. While easily sold, physical gold’s liquidity varies, and resale prices can differ.
Gold Exchange-Traded Funds (Gold ETFs): Invest in funds tracking gold prices without physical possession. Traded on stock exchanges, they offer easy access and high liquidity. Gold ETFs eliminate storage and purity concerns, simplifying diversification.
Gold Mutual Funds: These funds invest in gold ETFs or shares of gold mining companies, offering diversified exposure to gold markets. Managed by professionals, they provide potential capital growth and a hands-off investment approach.
Sovereign Gold Bonds (SGBs): Government-issued bonds linked to gold prices, providing interest income and potential capital appreciation. Backed by the government, SGBs are a secure long-term investment with tax benefits on capital gains if held until maturity.
Digital Gold: Buy and store gold digitally, avoiding physical possession. Accessible through online platforms, it allows small denomination transactions and ensures purity. Choose reputable platforms to mitigate digital transaction risks.
Global Market Trends:The international gold market significantly influences gold rates in India. Global economic conditions, geopolitical events, and currency fluctuations play a crucial role. During times of global uncertainty, gold prices tend to rise as investors seek a safe-haven asset.
Local Demand and Supply: In India, gold holds cultural and traditional significance, leading to high demand during festivals and wedding seasons. Changes in local demand and supply, such as fluctuations in import duties or supply chain disruptions, can directly impact gold prices in different regions.
Government Policies and Regulations:Government policies, including import duties, taxes, and regulations on gold imports, have a substantial impact on gold rates. Policies related to inflation and economic measures also affect gold prices. Keeping an eye on government announcements is essential for understanding price movements.
Exchange Rates:Gold is globally priced in US dollars. Therefore, fluctuations in the Indian Rupee (INR) against the US Dollar (USD) significantly affect gold prices in India. A weaker rupee makes gold more expensive, while a stronger rupee can lower gold prices.
Investor Sentiment and Speculation: Market sentiment and speculative activities influence gold rates. Investor behavior, trading volumes, and trends in other financial markets can cause short-term price fluctuations. While this factor is harder to predict, it remains an important determinant of gold prices.
Inflation Hedge:Gold has a track record of preserving its purchasing power over time, often increasing in value during periods of high inflation.
Portfolio Diversification: Gold's low correlation with other assets like stocks and bonds means its value often moves independently from them. Including gold in a diversified portfolio can help reduce overall risk because it may perform differently under various economic conditions.
Liquidity: Gold is highly liquid, meaning it can be easily sold or traded for cash in various markets around the world. This liquidity provides investors with a flexible source of funds during financial emergencies.
Safe Haven:During times of economic uncertainty or geopolitical instability, investors often turn to gold for its perceived stability and store of value.
Tangible Asset:Unlike stocks or bonds, which exist as electronic entries, owning physical gold provides a tangible asset that can be held directly. This tangible nature appeals to investors looking for a physical store of wealth that can be passed down to future generations.
Check for Purity: Verify the BIS hallmark to ensure the authenticity and purity of the gold jewellery.
Understand Karatage: Learn hallmark symbols to identify karatage; higher karats signify purer gold.
Monitor Market Prices: Stay updated on daily gold rates and compare prices across stores for fair pricing.
Negotiate Making Charges: Discuss and negotiate making charges to get the best deal on craftsmanship.
Avoid Stone-Studded Jewellery: For investment, refrain from buying jewellery with embedded stones due to purity assessment challenges.
Insist on a Bill: Always obtain a detailed bill to safeguard against future issues during resale or exchange.
Buy from Certified Jewellers: Purchase from reputable jewellers with BIS certification for guaranteed quality.
Consider Taxation: Understand local taxation implications when buying gold to avoid unexpected costs.
