24 KT Gold Price In India 2020
Gold prices have been the best standard for measuring Inflation always. Investors have been considering gold as an important investment. In India Gold is the favorite Investment without any doubt. Investors are always attracted to buy gold. They have not any worry about the Gold Price.
Gold Karat and Purity
Following are the Gold purity available in the market according to its Karat
- 24 Karat = 100% Gold Purity (99.9%)
- 22 Karat = 91.7% Gold Purity
- 18 Karat = 75.0% Gold Purity
- 14 Karat = 58.3% Gold Purity
- 12 Karat = 50.0% Gold Purity
- 10 Karat = 41.7% Gold Purity
According To BIS Hallmarking Rule Only 22kt, 18kt, and 14kt Jewelry are available and tradeable In India.
Factors affect Gold Price in India
Gold Trading by Central Banks of all over the world is a major factor in to increase of Gold in India. Central Banks of the world are investing in gold regularly. This is the key reason for the rising Gold Prices in the world. It occurs due to the central bank of the world.
If there is any shortage in the gold reserve. The gold prices rise. It causes rapid volatility in gold prices. In short, this demand originates from the central banks of the world. When demand exceeds expectations. Gold prices are increase frequently.
The rise in gold price in India also depends on the role played by gold ETF’S in the country. When gold ETFs are purchase by banks. It causes prices to rise in the international market.
Reasons for the rise in gold prices
Cross-currency headwinds can also affect precious metals like gold and silver. A sharp rise in the dollar price can cause gold prices to fall. Gold price in India are affected due to many reasons.
There is no reason which has a big impact. Overall, you can say that many factors are responsible for this. But this is possible only when the prices of gold have come down drastically.
If you have not done the estimation or study work properly then it can be a big burden on your budget. Therefore, buy gold carefully. This can harm your budget.
Buy Gold In SIP manner
If you want to buy gold you can take SIP(systematic Investment plan). Like if you want to buy 100 gms of gold. You can invest regularly at every price with a small quantity. In this manner, your investment is happening at regular intervals and at an average price.
Gold Prices depend on Demand and supply
Gold price in India depend on the demand and supply of the country. Currency fluctuations, Gold buying by central banks, and local taxes are big reasons which affect Gold Prices.
Gold prices in India are largely determined by the bullion association, which in turn is decided by gold retailers. For buying Gold you are advised to know the right price of the gold. Avoid buying on wedding season, festivals, etc. During this time, gold is more expensive.
Gold demand in India
According to information received from the World Gold Council, the gold import was down in India last year. Despite this, India overtook China in terms of gold consumption. By the way, the demand for gold jewelry in India will never let gold fade.
Despite that now e-gold and gold ETFs exist in India, the interest of the people; There is more in buying gold. The government increased the import duty to reduce gold imports, but the import of gold in the country did not decrease.
In the last few years, gold prices have gone through a bad phase. But still, it gave good returns after the 2008 recession. At that time the price of gold had gone very low.
Time to invest in gold in India
Many times the question arises in the minds of people that what is the right time to invest in gold, because the price of gold changes every day, so there are many apprehensions about investing in gold in the minds of people.
Now we tell you what is the right time to invest in gold. The price of gold does not rise after a certain limit. These prices are dependent on market prices and purchases. At present, the price of gold is around 50 thousand rupees and in the coming few years these prices can remain around it.
Keep in mind that whenever gold prices are rising, do not invest in gold and do not miss investing in gold when gold prices are falling. Suppose you invest in gold at a time when the price of gold is around 50 thousand rupees, then the profit you get can be between a maximum of 200-500 rupees or a profit of up to 1000 rupees but if you have gold
When you invest in it when its price is below 45 thousand rupees and then the price starts increasing gradually, then this same investment can give a good profit of 4 to 5 thousand rupees. Before investing in gold, you should know about the market price.
What is 24 Karat of Gold?
When we talk about 24 karat gold, it simply means that we are talking about pure gold. The quantity of gold in 24 karat gold is 99.9 percent. The scale of purity of gold is 24 karats.
The amount of pure gold in it is 99.9%. The hallmark of pure gold is that it is very flexible. Gold is a metal that can also be made known from paper. In many temples and places, goldwork is used as decoration.
At the same time, 24 karat gold is so flexible that it is not easy to make its jewel. Pure gold has more flexibility. So, the jewelry made from it can be twisted.
This deteriorates the size of the jewelry and is not wearable again. Most people in India wear gold ornaments, earrings, rings, and neck chains are the most worn. People also wear these jewels continuously. These ornaments are also made of 24 karat gold. So, they are twisted and turned very soon.
What is 22 Karat gold?
22 karat gold is most suitable for jewelry. 22 karat gold is less than 24 karat gold in terms of purity. Where 99.9 percent of gold content is contained in 24 karats. Whereas 91.6 percent of gold content is available in 22 karats. The rest 8.4% of metals are copper and zinc.
Due to these metals, gold is stronger than 24 karats. 22 karat gold is mostly used to make jewelry. All the bullion markets of the country make gold ornaments in 22 karats. The price of 22 karat gold is reduced by 1 to 2 thousand rupees.
What is 18 Karat gold?
Every person is a concern to buy budget jewelry. When it comes to buying gold the first gold price is checked. 18-karat gold contains 75 percent gold, the remaining 25 percent is metals like silver, zinc, nickel, and copper.
Gold jewelry is studded with other stones such as pearls or diamonds always made in 18 karat gold. 18 karat gold is stronger than 24 karat and 22 karat gold due to which the stone in it remains in its place.
There is one more thing to note here, the price of 18 karat gold is less than the price of 22 karat gold, due to which you can buy gold jewelry for less money. Suppose now the price of 24 karat gold is around 50 thousand rupees and the price of 22 karat gold is around 47-48 thousand rupees, while the price of 18 karat gold will be between 40-41 thousand rupees.
Recommendation of the committee to curb Black Money In Gold
The report of the Kama Household Financial Panel stated, ‘The committee has made this recommendation with the intention of controlling the tendency to accumulate black money in the form of gold. The committee believes that enforcement of tax prevention should be strict.
The committee is constituted by the RBI. After a meeting of the Financial Stability and Development Council (FSDC) to study various aspects of domestic finance in India. The committee, headed by Professor Tarun Ramadorai of Imperial College, London, included the Reserve Bank, SEBI, Insurance Fund. , Insurance Regulatory and Development Authority, and PFRDA representatives.
Gold transactions should maintain recorded Online System
The committee says that once the PAN is mandatory to buy gold, its transactions can be done in secret. Therefore, to prevent this, all types of gold transactions should maintain recorded Online System.
The committee says that income tax data should be used to prevent tax evasion by purchasing gold. Also, the provisions to prevent tax evasion should be strictly enforced. The committee has also advised the start of the gold exchange. So, the gold market has positive confidence.
There can be a PAN card for the purchase of gold.
A panel of compulsory financial regulators has proposed that a PAN card be mandatory for every sale of gold. If the government agrees to this, then the PAN card may be necessary for the purchase of gold irrespective of the amount.
PAN number is required to purchase more than two lakh rupees of gold. Every sale of gold will be recorded in the electronic gold registry. This means that whenever you buy gold from a jeweler, its account will be kept online so that it can be known that a person is not depositing black money by buying gold.
Know Gold Price before the purchase
The first thing that you have to do while buying gold is that you should know the price of gold in your city. Be sure to know what is the value of gold in your city. Find gold prices not just from one shop but from many shops. This will give you an idea of what is the average price of gold in the city.
Where to buy gold?
If you live in a rural area, do not ever buy gold from a nearby goldsmith shop. We are saying this because the price of gold at such shops is different from the market price, the quality of gold is always suspicious, so feel like buying gold from any such bullion shop.
If you live in a small town and there are many bullion shops, then you choose the most reliable shop from that, what is the price of gold at that shop and how much is the charging charge, Keep in mind, the more reliable the shop, the better the quality of gold.
The old and reliable Gold Shop which have Goodwill in the market. Try to buy at Government approved jeweler. Who has a license to deal in Gold and Gold jewelry?
What is the gold making the charge?
The most important point in the purchase of gold is its making charge. The Indian Bullion Association decides what the price of gold will be across the country.
Therefore, the price of gold in every city is 100-200 rupees less, but in one city, the price of gold remains the same, the price of gold remains different due to its making charge and other taxes.
While buying gold, definitely check the BIS hallmark on it. This hallmark proves whether gold is real or not. Also, the quality of gold is also certified through the BIS hallmark.
18 karat gold is Value for money
Currently, three varieties of gold are more popular, among them 24 karat gold, 22 karat gold and 18 karat gold. If you are buying gold jewelry, then you can choose one of these three varieties. Since 24 karat gold is the highest price, most people buy 22 karat gold ornaments.
If you want to buy gold jewelry in less money then you can buy gold jewelry in 18 karats. Of the 18 karat gold, 75 percent is gold, while the remaining 25 percent is silver, copper, and other metals.
Ask for Attractive Gold Schemes from your jeweler
Many Big Jewelers also offer you some good schemes under which you can buy gold ranging from 48 to 50 thousand rupees for 47 to 48 thousand rupees. Suppose you need gold in December. The Big Jewelers offer you to have Rs 5000 Investment monthly. And Get the Full value of Gold in December.
Now if you deposit 5 thousand rupees every month from March to December, then you can get gold of 50 thousand rupees in December for just 47 to 50 thousand rupees. You can find out about this type of scheme from the Jewelers Shop. Apart from this, you can also buy jewelry on EMI. If you need
Gold is a Best Investment
Gold jewel is not just a decoration but also an investment. While buying gold, keep in mind that when the time comes, you can sell it again so that you get more profit. Gold is not just decoration but also an investment.
Therefore, you can buy gold coins, etc. in addition to jewelry and later you can earn a good profit by selling them. The best time to invest in gold is when the price of gold is very low. Suppose today the price of gold is 48 thousand rupees per 10 grams and if you invest in gold, then the benefit you get will be very less.
If you make the same investment when the price of gold is around 45 thousand rupees, then you can get a better profit of 4 to 5 thousand rupees per 10 grams.
The price of gold decided in India
If you look at the prices of gold in India, you will find that the price of gold is different in every city in the country. Gold is expensive in many cities and cheaper in many cities. Gold prices in Indian cities depend on international prices. Therefore, when international prices of gold increase, many cities have more expensive gold.
We do not have many gold mines here, we have to import the gold we need. Government and private banks in India import gold, as well as some agencies that buy gold from abroad and send it to dealers. This list of importers keeps changing and the government keeps changing it.
Who brings gold in India?
Indian Bullion Jewelers Association derived Daily Gold prices in India. The IBJA (Indian Bullion Jewelers Association) in Mumbai, is an association of gold dealers. They set the price of Gold daily.
Then They sent gold to retailers. They contact the big dealers to determine the rate and decide future prices.
State Bank of India, Bank of Baroda, Mineral and Metal Trading Corporation, Union Bank, Syndicate Bank, etc. are importers of gold. There are 38 banks in India that buy gold from outside.
Later these banks calculate the international price of gold and convert it into India’s currency, then impose import duty on it. In this way, the price of gold in India is fixed. But this is not the final retail price.
Not every yellow metal is gold
Gold is yellow, it does not mean that every yellow metal will be gold. Good quality fake gold jewelry also found in the market. Which will look exactly like gold jewelry.
You can identify real gold in many ways. You can do a gold acid test at a goldsmith shop. If there is no color release in the acid test, then the gold is real. If the yellow color becomes white, then it means that the metal is not gold.
Gold price fixing process
There are other ways to fix the price of gold. You can take the international price of gold and multiply the value of the rupee against the dollar. Banks import from gold, extract Customs duty and GST, and local expenses. Therefore, what you pay at a jeweler’s shop includes all these things along with the charging charge.
Why gold prices in India vary from city to city?
Gold prices are different in different states. Some states have higher transport costs or transportation costs. Some people believe that in cities like Mumbai, Chennai, and Kolkata, gold prices are lower because the ports here have direct access to gold and other costs are saved. This is not the only reason, some other reasons also affect these gold prices in cities.
How gold prices are affected by dollar
The currency also plays an important role in deciding the price of gold. For example, we have to import gold and pay it in dollars.
Now if the value of the rupee falls to 67 or 68 rupees against the dollar, then we have to pay 1 rupee more for gold. The more gold will be imported, the more foreign exchange i.e. foreign exchange reserve will flow more in the country. Look at the price of gold and silver in your city here
Where does gold come from in India?
India has the 10th largest gold reserves in the world. We tell you how much gold is produced in India, how much is imported and how much is recycled. In 2015, India imported 950 tonnes of gold to meet gold demand.
Who can import gold in India?
Gold is a valuable metal. Who can import gold has strict rules. It is monitored by specially appointed top agencies. This includes the Reserve Bank of India, DGFT and the Ministry of Finance. They control the entire gold imported in the country. Some agencies such as banks and trading houses may import gold in the country.