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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.
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.
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:
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.