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Gold Rate in Coimbatore

Coimbatore is a city in the Indian state of Tamil Nadu. It is the second largest city housing the biggest textile and manufacturing industries. The city also houses people having immense love for gold jewellery. Gold has been one of the preferred choices of investment amongst the people in Coimbatore due to which there is a steady increase in the gold consumption rate. The high demand for gold has led to a rise in the gold rates that keep on fluctuating on a daily basis. Since gold is a liquidable asset and also acts as a hedge against inflation, people in Coimbatore invest in gold. Gold in Coimbatore is in demand in every season as mainly it is looked upon as an investment and also has a cultural value due to which people prefer to buy it during the time of wedding and festivities.

To buy gold in Coimbatore, one can check gold rate online in the city and then proceed with the purchase. Gold rate in Coimbatore is different for 22K and 24K purity. The investor can buy gold on that particular day.

Factors Affecting Gold Rate in Coimbatore

Gold being one of the most appreciated metals in Coimbatore is always in demand. No matter what the gold rate today in Coimbatore is, people just cannot say no to buying this yellow metal. But do you know about the factors that influence gold rate in Coimbatore? Do you know how and why these prices rise or fall?

Here are a few factors that affect the gold rate in Coimbatore

  • Inflation: In comparison to currency, gold holds a significant value and can be used as a hedge against inflation. Due to this, many investors today prefer investing in gold instead of currency. When the inflation is high, the demand for gold increases since people opt out from doing risky investments. Similarly, when the inflation is normal, the demand for gold is not too much as people have other investment options open.
  • Dollar and rupee equation: Gold in Coimbatore is imported from US countries. Therefore, if the value of rupee increases against the dollar, the gold prices increase and when the rupee dips against the dollar, the demand for gold decreases. Weakening dollar: Gold and dollar share an inverse relationship. A weakening dollar increases the gold rate in Coimbatore and a strong dollar decreases the gold price. This is because a falling dollar increases the demand for commodities including gold. Also, when the US dollar falls, people start looking for other investment options and gold seems to be the best option.
  • Bank interest rates: If the FD rates given by banks fall, the demand for gold increases as people look to make profit as gold offers great return value.
  • Time of purchase: The time of purchase of gold highly affects the gold rate in Coimbatore as the demand for gold is more during the time of festivals and weddings. Production costs: If the gold mining companies in Coimbatore increase the gold production costs, then the gold rates are highly affected.
  • Import duty: Gold in Coimbatore is imported. So, with any fluctuation in the rate of import duty charged, the gold rates in Coimbatore are subject to increase or decrease.

Who Determines Gold Rate in Coimbatore?

There is no specific person or jeweller that determines the gold rate today in Coimbatore. To ensure transparency and accurate gold rate in the city, the Coimbatore Jewellers Association has come into being. The association consists of jewellers and goldsmiths who decide the gold rate for the day in Coimbatore. The members of the association check the ‘buy’ and ‘sell’ ratio and remove an average on the basis of which the gold rate is determined for the day. At the time of determining the gold rate, international trends, current exchange rate in terms of rupee and dollar, MCX futures and taxes levied on gold are also taken into consideration.

Various Gold Investment Options Available in Coimbatore

There is an array of gold investment options in Coimbatore that one can opt to get the best returns. While gold jewellery seems to be the best gold investment option, there are a number of other options available which one can opt for.

  • Gold bars: Commonly referred as gold biscuits, gold bars and coins are mainly purchased during festivals on auspicious occasions such as Dhanteras, Diwali, Akshaya Tritiya and others. Investing in gold bars ensures that you get your money’s worth as there are no making charges involved. Gold bars are also available in various weight options and one can purchase it depending on his budget and preference.
  • Gold coins: Gold coins in Coimbatore are primarily purchased for the purpose of gifting or saving. They are highly liquidable and involve no making charges. Also, gold coins come in various purity options and one can purchase it from a jeweller or a bank. While buying a gold coin in Coimbatore, one should do a complete check of its weight, design and certificate.
  • Gold ETF: Gold-backed exchange-traded fund i.e. the ETF is a financial instrument comprising of units backed by physical gold represented in paper or dematerialised form Gold-backed ETFs are listed and traded on the National Stock Exchange of India (NSE) and Bombay Stock Exchange Ltd. (BSE) (“the Stock Exchange”). To buy a gold-backed ETF, it is mandatory for an individual to hold a Demat or a trading account.
  • Sovereign Bond Scheme: In simple terms, a Sovereign bond scheme is a government security scheme denominated in grams of gold. It is a substitute for holding physical gold. Under this scheme, an investor has to issue price in cash and the bonds will be redeemed in cash on maturity. Sovereign Gold Bonds on behalf of the Government of India by Reserve Bank of India.
  • Gold jewellery: Gold jewellery purchase is one of the highly preferred investment options in Coimbatore. People usually buy gold jewellery in the form of necklaces, earrings, pendants rings and more as they help them enhance their beauty and also act as a good savings tool. However, purchasing gold jewellery involves making charges that are excluded at the time of selling.

Things to Know Before Investing in Gold in Coimbatore

If you are looking to invest in Gold in Coimbatore, you sure do have a plethora of investment options. Since gold not only has an ornamental value but also is an excellent investment option, here are a few things that you need to check while buying gold in Coimbatore.

  • Check for the cost per gram: The day you step out to buy gold in Coimbatore, check for the cost per gram rate for the day. You can easily do a search for the gold rate today in Coimbatore and check the cost per gram 22K and 24K rate. Doing this gives you a fair idea of how many grams of gold you can afford to purchase.
  • The purity of gold: Gold is available in different purity levels that directly affects its price. For example, 22K gold consists of 91.6% gold, whereas, 18K gold consists of 75% pure gold content. So always research on the type of gold you want to buy and check the different rates based on the purity level.
  • Certification: Gold that does not carry BIS certification may not be pure. Always check if the jewellery you are buying has the BIS logo, gold purity mark, assay centre mark, jewellers identification mark and also mentions the year of hallmarking. Purchase a gold item only if you see the BIS hallmark.
  • Check for the buyback terms: Find out if the jeweller that you are buying the gold from, in Coimbatore, offers buyback option. If yes, then at what rate? Doing this would give you a fair idea of the exchange or selling opportunity available on the gold item purchased.
  • Check for the charges: While selling gold, jewellers may not tell you about the other charges involved in your purchase. Apart from the cost per gram rate, your jewellers may ask you to pay making charges and other charges that they levy. Making charges and other charges always differ from jeweller to jeweller. So always ask your jeweller to briefly explain you about all the charges that he would be charging for your jewellery purchase.

FAQs on Gold Rate Today in Coimbatore

Who are the major gold dealers in Coimbatore?

Coimbatore is home to most of the well-known gold dealers such as Malabar Gold, Kalyan Jewellers, Josco Jewellers, Joyalukkas and Karpagam Jewellers.

What is today’s gold rate in Coimbatore?

You can check today gold rate in Coimbatore at the nearest jewellery store or go online for the same.

Can I buy gold at the old gold rate in Coimbatore?

No, you cannot buy gold in Coimbatore at an older gold rate and you will have to buy it as per the gold rate prevailing today in the city.

Is 22kt gold price today in Coimbatore different from 24kt gold rate?

Yes, 22kt gold price today in Coimbatore is less than the 24kt gold price in the city.