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Chennai is a metropolitan city and the capital of the South Indian state of Tamil Nadu. Chennai is one of the biggest consumers of gold in India as gold in Chennai is one of the hugely imported commodities. Since gold is looked at as a lucrative investment option and also has prominent cultural value, Chennai ranks above all the other cities and states of India when it comes to gold trading. Therefore, the city witnesses major sell and purchase of the yellow metal on a daily basis.
There are numerous jewellery establishments in Chennai that mainly deal in the selling of gold jewellery as people are highly involved in investing in gold ornaments. No matter what the gold rate today in Chennai is, the citizens of the city love gold and purchase it at any given rate. It is important to note that the gold rate in Chennai changes on a daily basis depending on numerous factors such as the demand and supply equation, inflation, the rate of the US dollar and others.
Gold rate in Chennai is determined depending on the decision of the Bullion Association in accordance with the international stock exchange.
To buy gold in Chennai, it is necessary for an individual to understand the various factors that have a major impact on its price. The strength of the US dollar:
It is imperative to know that when US dollar becomes strong, the gold price in Chennai slips down as people start investing in the currency rather than a metal. Similarly, when the US dollar weakens, the gold price in Chennai goes sky high as people tend to invest in gold instead of making an investment in a depreciating asset. With gold being a dollar-dependent asset, its changing dynamics directly have an impact on the gold rate in Chennai.
Inflation: During times of rise in inflation, the value of currency falls. This prompts more people to hold money in the form of gold. When inflation remains high over a longer duration, gold serves a tool to hedge against inflationary conditions. This results in gold prices moving up during inflationary period.
Rupee-dollar equation: Although the rupee-dollar equation does not affect global gold prices, it plays a role in Indian gold rates. Given that gold is largely imported, if the rupee weakens against the dollar, gold prices will likely appreciate in rupee terms. A depreciating rupee may hurt the demand of gold in the nation. It must, however, be noted that a change in rupee-dollar rates does not affect gold rates denominated in dollars.
Gold and interest rates: Under normal circumstances, gold and interest rates have a negative relationship, some industry experts have suggested. Rising yield denotes an expectation of strong economy. This situation gives rise to inflation, and gold is used as a hedge against inflation. When rates increase, investors move to fixed-income investments that yield a fixed return, unlike gold, which does not fetch any such returns. Demand therefore takes a back seat, with prices staying flat.
In the city of Chennai, gold rates are fixed twice in a day. The rate at which the trading for gold commences at the start of the day is called the open rate and the rate at which he trading concludes is called the closing price. Madras Jewellers and Diamonds Association is responsible for fixing the gold rate every day. Many jewellers in Chennai are members of MJDMA who are notified about the changing gold rates.
If an individual wants to buy physical gold, all he or she has to do is go to the nearest jewellery shop and purchase gold jewellery and/or gold coins. It is advisable to opt for coins since jewellery has making costs, which the individual will not be able to recover when selling. Other than physical gold, one has the option of buying gold ETFs. They are funds that mainly invest in gold, and can be purchased and sold on the exchange. To buy gold ETFs, one simply needs to ask the broker to buy after opening a broking and trading account. Sovereign gold bonds are also listed, and individuals can buy them in the same manner as listed shares are bought.
One of the popular ways of investing in gold in Chennai is buying gold ornaments. However, with the new investment avenues, investors are also investing in Gold ETFs.
Here are a few gold investment options in Chennai:
Since you are investing your hard-earned money in buying gold, it is imperative that you understand every aspect of it before making a purchase.
Here are a few things to consider while investing in gold in Chennai:
Trend of Gold Rate in Chennai for August 2019
|Gold Rates||22 Carat||24 Carat|
|1st August rate||Rs. 33,150||Rs. 36,160|
|31st August rate||Rs. 36,910||Rs. 40,260|
|Highest rate||Rs. 37,180 on August 26||Rs. 40,560 on August 26|
|Lowest rate||Rs. 33,150 on August 1||Rs. 36,160 on August 1|
Trend of Gold Rate in Chennai for July 2019
|1st July rate||Rs. 32,520||Rs. 35,470|
|31st July rate||Rs. 33,380||Rs. 36,590|
|Highest rate||Rs. 33,690 on June 19||Rs. 36,660 on July 19|
|Lowest rate||Rs. 32,140 on July 2||Rs. 35,090 on July 2|
Trend of Gold Rate in Chennai for June 2019
|Gold Rates||22 Carat||24 Carat|
|1st June rate||Rs. 30,790||Rs. 33,580|
|30th June rate||Rs. 32,520||Rs. 35,470|
|Highest rate||Rs. 32,650 on June 25||Rs. 35,650 on June 25|
|Lowest rate||Rs. 30,760 on June 11||Rs. 33,000 on June 11|
Trend of Gold Rate in Chennai for May 2019
|Gold Rates||Gold Rates||24 Carat|
|1st May rate||Rs. 30,120||Rs. 32,870|
|31st May rate||Rs. 30,540||Rs. 33,290|
|Highest rate||Rs. 30,910 on May 14||Rs. 33,660 on May 14|
|Lowest rate||Rs. 30,000 on May 2||Rs. 32,750 on May 2|
Trend of Gold Rate in Chennai for April 2019
|Gold Rates||22 Carat||24 Carat|
|1st April rate||Rs. 30,370||Rs. 33,250|
|30th April rate||Rs. 30,420||Rs. 33,170|
|Highest rate||Rs. 30,560 on April 9||Rs. 33,320 on April 9|
|Lowest rate||Rs. 30,100 on April 19||Rs. 32,780 on April 19|
Trend of Gold Rate in Chennai for March 2019
|Gold Rates||22 Carat||24 Carat|
|1st March rate||Rs. 31,480||Rs. 33,700|
|31st March rate||Rs. 30,430||Rs. 33,310|
|Highest rate||Rs. 31,480 on March 1||Rs. 33,700 on March 1|
|Lowest rate||Rs. 30,180 on March 12||Rs. 32,630 on March 12|
It is necessary to note the price of gold since even a small variation in gold rate can lead to a major loss. The rates of gold today are very quite when compared with that of a decade ago. Buyers are advised to first compare the gold rate charged by one jeweller with that of others in the city. The well-established jewellers are likely to charge more in making charges for gold. If one finds that the making charges of gold is significantly high at one jewellery store, it is recommended to compare it with the rate charged by other goldsmiths or jewellers. By doing so, the individual might be able to find one whose price fits his or her pocket.
The BIS logo can be found on gold jewelleries that are hallmarked by the Bureau of Indian Standards. This is evidence that the gold's purity has been verified at one of the bureau’s licensed laboratories. It is essential to note that BIS hallmarking is not mandatory - not all jewellers offer hallmarked BIS jewellery. Some offer their in-house hallmarking of jewellery which is not verified by the national standards body of India. Before buying gold jewellery, it is advisable to check with the jewellers whether or not they offer BIS hallmarked ornaments.
The different ways by which a user can buy gold include:
Gold as an investment is worthwhile since it acts as a hedge against inflation. Overtime, its returns would be in line with the rate of inflation. The second reason why investment experts recommend this route is due to the fact that gold is negatively correlated to equity investments. A few years back, it was observed that the equity markets did not perform too well, whereas gold did. Thus, including gold to one’s portfolio mix can help reduce the overall volatility of the portfolio.
Are there any gold hallmarking centres in Chennai?
Yes, there are over 21 BIS hallmarking centres in Chennai.
What are the popular gold ornaments in Chennai?
As per a survey conducted by the World Gold Council, bangles and chains contribute for over 30-40% of the overall gold ornaments demand in Chennai. While, Necklaces contribute to be between 15-20% and rings, earrings and finger rings are in 5-15% in demand.
Which are the well-known jewellers in Chennai?
Few of the well-known jewellers in Chennai are GRT jewellers, Tanishq, Lalithaa Jewellery, Joyalukkas, Prince Jewellery, Vummidi Bangaru Jewellers and others.
Is there a GST impact on gold price in Chennai?
Yes, gold rate in Chennai is affected by the GST as 3% GST is levied on the purchase of gold.
How can I double check BIS hallmark in Chennai?
You can double check BIS hallmark at any of the 21 hallmarking centres in the city. This will require you to pay a certain amount and you will be provided with an Assayreport on request. In case the gold purchase is found out to be of lesser quantity, then with the BIS hallmarked assured, the testing charges paid by you will be refunded.
What is the difference between KDM and hallmark jewellery in Chennai?
BIS hallmark certifies that the gold you are purchasing is pure and it consists of the below four elements:
In simple terms, KDM gold is cadmium-soldered gold. KDM is an alloy of gold and cadmium consisting of 92% of gold and 8% cadmium. KDM has a melting point lower than that of other alloys and also maintains the gold purity, even when melted. However, KDM is now discontinued as it has proven to be hazardous to health.
What is per gram Gold Rate in Chennai?
According to the Good Returns website, the gold price for 24 karat gold is Rs. 3,966 per 1 gram.
What is 10 gram Gold Rate in Chennai?
According to the Good Returns website, the gold price for 24 karat gold is Rs. 39,660 per 10 grams.
What is 100 grams Gold Rate in Chennai?
According to the Good Returns website, the gold price for 24 karat gold is Rs. 3,96,600 per 100 grams.