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Gold rate in Hyderabad

Hyderabad is the capital of the Indian state of Telangana. The city is well-known for being one of the largest gold consumers in India. Gold has been a major source of investment for people in Hyderabad as it offers stable and long-term returns. Gold in Hyderabad is not just associated with wealth but is also looked upon as a factor for bringing prosperity and luck. The celebration of festivals and weddings in Hyderabad is incomplete without purchasing and gifting gold items. The demand for gold in Hyderabad has considerably increased over the years due to which gold rates change each day and have witnessed a steady rise. Gold rates in Hyderabad are heavily influenced by a number of factors that have a direct impact on the gold rate today. One can check the gold rate today in Hyderabad by doing a simple online search or can check it at a nearby jewellery store.

Factors That Affect Gold Rate in Hyderabad

Today, gold rate in Hyderabad is influenced by the factors listed below: The rate of the US dollar: If the US dollar weakens, the gold rate in India falls down; similarly if the US dollar strengthens, the gold rate increases. This is because gold rates have an inverse relationship with the US currency as India purchases gold from the US. Hence, a strong US dollar means gold is sure to get expensive.

  • Rupee VS dollar: When Indian rupee gains strength against the Indian rupee, the gold rate goes down as importers have to pay the money at the existing rate. Similarly, when the rupee becomes weak, the gold rate is expected to go higher as importers have to pay at the rate of the US dollar.
  • Demand and supply: Less supply and more demand lead to an increase in gold rate in Hyderabad. The demand for gold in Hyderabad is more during the time of festivals and weddings. Hence, during such times, the gold rate in Hyderabad shoots up.
  • Inflation: People usually purchase gold to feel protected during the time of inflation. Hence, when inflation witnesses an upward trend, the demand for gold increases, which eventually leads to an increase in its price.
  • FD interest rates: For over years now, bank FDs are considered one of the safest investment options. However, as banks offer low-interest rates, people are now moving on to invest in gold.
  • Logistics: Gold rates are largely dependent on the import duty charged during the process of importing it to Hyderabad. Gold being a precious metal requires a lot of safeguarding due to which the charge of import duty would vary from city to city. A higher import duty charge means an eventual increase in the gold rate.

How is Gold Rate Determined in Hyderabad?

Andhra Pradesh Gold Silver Jewellery and Diamond Merchants Association established in 1955, determines the gold rate in Hyderabad. The association has over 200 members who have a say in the gold rate for the day. Few jewellers in Hyderabad do not follow the rates affixed by the association and calculate their own gold rate otherwise. Gold rate in Hyderabad is also calculated on the basis of the prices by Indian Bullion and Jewellers Association (IBJA). IBJA publishes gold rate twice in a day - once in the morning, known as opening rate and once in the evening, known as closing rate. The gold rates are all different for different gold purity - 24K, 22K and 18K. Taking into account the gold rates decided by the IBJA and other costs such as transportation charges, taxes and more, the gold rate today in Hyderabad is arrived upon.

How to invest in gold in Hyderabad?

Gold is one of the preferred options for making an investment in a metal. In order to diversify one's investment portfolio, gold has become one of the less risky investment options. Buying gold in Hyderabad is easy due to a plethora of gold investment options:

  • Gold jewellery: Hyderabad, along with Chennai and Bangalore, is one of the top consumers of gold in the Southern part of India. Jewellery such as earrings, pendants, gold chains, etc. are high in demand in Hyderabad.
  • Coins and bullions: Investment in coins and bullions is considered profitable as there are no making charges involved in it, in comparison to jewellery. Coins and bullions can be purchased in Hyderabad from banks or jewellers. However, buying coins and bullions from banks is not a good idea as they do not accept it back. Coins and bullions can be purchased in various karats and the prices generally vary from banks to jewellers.
  • Gold savings fund: Through gold savings fund, investors can regularly make an investment in gold through SIP. Investors are not required to own a DEMAT account for investing in this type of mutual fund.
  • Gold ETF: Gold ETF is just like a stock that requires an investor to open a trading account.
  • Gold Fund of Funds: Gold fund of fund is just like any other mutual fund investment in the market. Under this gold investment scheme, money is invested in various gold-related funds on the behalf of the investor.

Things to Consider Before Buying Gold in Hyderabad

In case if you are looking to invest in gold in Hyderabad, then here are a few things that you should know before you proceed with it.

  • Gold purity: In simple terms, gold purity gives you an idea of the gold content in the jewellery item. Gold purity ranges from 24K, 22K, 18K, 14K and 10K. 24K is the purest form of the yellow metal. 22K, 18K, 14K and 10K gold items are mixed with other metal to strengthen it. So, while you make a gold purchase, check its purity and also ask the jeweller to provide you with a gold purity certificate.
  • Check for BIS hallmark: BIS hallmark is a hallmarking system that certifies the purity of the metal. The BIS hallmark consists of the below five components:
    • The Bureau of Indian Standards BIS logo
    • Purity of gold
    • Assay centre
    • Jeweller’s identification mark
    • And the year of hallmarking
  • Making charges: The gold jewellery that you purchase in Hyderabad is given to you inclusive of the making charges. Making charges are basically the costs that incur in making the jewellery piece. Hence, it is always a good idea to ask your jeweller to provide you with a fixed making charge. Also, when you go to sell the jewellery, the making charges are not included and you will only be given the money on the basis of the current gold rate.
  • Bank lockers: To store gold safely one can always opt for a bank locker system. However, banks do not offer a guarantee against theft or fire and also levy charge on a monthly or yearly basis and also have made it mandatory to open a FD with them.

FAQs on Gold Rate in Hyderabad

In comparison to other cities, what is the gold rate in Hyderabad?

The gold rate in Hyderabad continues to rise in comparison to other cities of India.

Is there any process to be followed for importing gold in Hyderabad?

Yes, one can import any quantity of gold as you desire, as one has to declare the amount of gold one wants to import. Lady travellers are allowed to import gold jewellery worth up to 1 Lakh Rupees, while male travellers can import gold worth 50,000 Rupees.

What is the impact of GST on the gold rate in Hyderabad?

Yes, the gold rate in Hyderabad is affected by the GST and 3% tax is levied on the purchase of any gold item in the city.

Which are the well-known jewellers in Hyderabad?

Chhaganlal Jewellers, Sri Krishna Jewellers, Kalyan Jewellers, Shree Jewellers are few of the well-known jewellers in Hyderabad.

Does gold rate today in Hyderabad affect the gold rate in Chennai?

No, the gold rate in Hyderabad does not affect the gold rate in Chennai.

Why is gold rate today in Chennai different from other cities of India?

Gold rate today in Chennai is different from other cities in India due to several factors such as taxes prevailing in the city, transportation cost and the rising demand for the yellow metal.