Gold Rate Today In India
India is one of the world's largest consumers of gold, from weddings to festivals, gold is used almost every time we celebrate. On the other hand, gone are the days when women used gold for mere adornment as an investment in gold is now universally recognised as one of the most effective ways to multiply savings.
Since time immemorial gold has been in use in the form of currencies and even today the importance of this golden metal is such that people from all walks of life use it for wealth creation. Considering the demand for gold, the gold price or rate keeps fluctuating.
Today Gold Price in Major Indian Cities
|City||22 Carat Gold Price Today||24 Carat Gold Price Today|
|Day||22 Carat||24 Carat||Change|
Today 22 Carat Gold Rate in India
|Day||1 gram||8 gram||10 gram||100 gram||Change|
Today 24 Carat Gold Rate in India
|Day||1 gram||8 gram||10 gram||100 gram||Change|
Investment Plan Vs Gold
**Disclaimer - The graph is based on hypothetical data and is meant only for concept understanding purposes.
Gold Rate / 10g in India for Last 10 Days
|Date||22 Carat Gold Price Today||24 Carat Gold Price Today|
Historical Gold Rates in India
|Months||Lowest Price (24 Carat) Gold rate/ 10gram||Highest Price (24 Carat) Gold rate/ 10gram|
Factors Affecting Gold Price In India
Gold demand in our country is so high that India represents 25% of worldwide gold demand. The gold prices in India keep changing especially during the wedding season due to the rapid surge in demand at the time. There are many other factors too that affect the gold price in India. Thus, listed below are some of the factors that affect the gold price in India that gold investors must keep in mind while purchasing gold in India.
- Inflation: As compared to currency, the price of gold surges during the period of inflation and vice versa. This is because the price of commodities increases during inflation, thereby affecting gold prices too. Many investors thus use gold to hedge inflation as this golden metal shines, even more, when inflation hits.
- Value of US Dollar: The relationship between the rupee and the US dollar is another important factor that affects the value of gold in India. Gold price in India and the value of US dollars have an inverse relationship to play as the moment the US dollar strengthens, the value of gold in India depreciates and vice versa.
- Festivals: Indian festivals are incomplete without the use of gold, just like weddings in India. The price of gold rises during festivals like Diwali, Akshay Tritya, etc, as during this time demand for gold is exceptionally high. The inability to meet the demand-supply equation is what tends to affect the price of gold during Indian festivals.
- Cost of Imports: The demand for gold in India is mainly met by imports. As a result of which the import costs heavily affect the gold price in India. If the import cost increases or decreases, the price of gold also varies accordingly.
- Political Turmoil: During political turmoil or wars, the price of most financial assets falls down. In a situation like this when times are highly uncertain and unpredictable, people tend to invest more and more in gold as a safe haven, which in turn shoots up the price of gold.
- Bank Interest Rates: The more the rate of interest, the lower the rate of gold. The reason for this is that people tend to sell gold in order to acquire cash when the rates become high. On the other hand, when the interest rate decreases, the rate of gold inversely rises.
In addition to these, there are several more global and domestic factors that have a role to play in affecting the gold rates, however, the bottom line still remains the same gold is one of the best modes of financial investment.
Sovereign Gold Bond Scheme And Investment
Gold is a precious and auspicious metal in India that is often prone to theft or burglary. Thus, in order to escape such a situation as well as earn greater interests, the government of India launched an alternative to the physical gold which is called the Sovereign Gold Bond. But, before digging more into it, let’s first understand what the Sovereign Gold Bond Scheme is.
What is the Sovereign Gold Bond Scheme?
On behalf of the Government of India, the Reserve Bank of India launched the Sovereign Gold Bond Scheme in 2015. As the name already suggests, the gold bonds are basically denominated per grams of gold. The interest rate for this is 2.5% per annum which is paid on a semi-annual basis and the tenure for the scheme is 8 years. However, investors can make an exit in the 5th, 6th, or 7th year of the scheme.
Benefits of Sovereign Gold Bond Scheme
As compared to physical gold, there are a bunch of benefits of the Sovereign Gold Scheme, some of which are enumerated below:
- A scheme like this helps is cost-effective as compared to physical gold. The reason is that since these are digital bonds, it saves the effort as well as money to safeguard physical gold in banks.
- Sovereign Gold Bond Scheme investing is also passive income, which means the investor receives money as part of the interest rate.
- Sovereign Gold Bond Scheme also protects investors from the risk of purity and hefty making charges that are incurred upon buying physical gold.
In a nutshell, it is right to say that individuals who are looking for long-term investment can surely opt for buying the Sovereign Gold Bond Scheme instead of physical gold.
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How is the hallmarked gold rate today determined in India?
The rate of hallmarked gold in India is like any other gold and thus the price remains the same. However, the only difference is that hallmarked gold possesses high quality and thus it is wise to buy hallmarked gold anywhere in India.
How is gold an asset?
Gold is one of the safest assets in India and is used to hedge inflation and even protect investors during turbulent times. Thus, many people invest in gold as it offers the most protected haven against financial instability.
How is gold price determined in India?
Today, gold price in India is determined by several factors including inflation, US dollar value, interest rates, global demand for gold, and a few more. All these factors affect the price of gold in India either in a positive or negative manner.
How to keep your gold safe in India?
Many people tend to keep their gold in bank lockers to safeguard their priced gold from robbery. On the other hand, many people also buy ETFs which are electronic forms of gold as doing so eliminates the risk of robbery or even fraud.
Are there restrictions on gold imports in India?
Yes, gold imports in India are subject to restrictions as you are eligible to carry a maximum of only 1 kg of gold to India.