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Today Gold Rate in Indore

In India, the demand for gold is witnessing a steady rise. As an investment, the yellow metal is regarded as one of the best hedges against inflation. Gold can be held in paper, like gold ETFs and sovereign gold bonds, or physically i.e. as jewellery, gold bars and coins. Its rate varies across cities due to local market factors such as its supply and demand, state taxes and transportation charges (of physical gold). This article focuses on how lucrative gold investments are in the city of Indore and its rates over the recent months.

Factors Affecting Gold Rate in Indore

A number of factors have an impact on the gold rate in Indore. Here is a look at a few:

  • Rupee-dollar equation: The rupee-dollar equation has led to an increase in gold prices. Since the precious metal is mostly imported, gold rates tend to appreciate in rupee terms when rupee weakens against the dollar. It is important to note that a change in rupee-dollar rates does not affect gold rates denominated in dollars.
  • Inflation: A common reason that is cited by many for holding gold is that it acts as a hedge against inflation. During inflation, more people prefer to hold money in the form of gold. When inflation remains high over a longer period of time, the yellow metal helps to hedge against inflationary conditions. This gold rate eventually increases on account of the increased demand.
  • Monsoon: The country consumes about 850 tonnes of gold on each year, and rural India makes up for 60% of the nation’s gold consumption. Monsoon has a big role to play in gold consumption - when the crop is good, then farmers buy gold to create assets. If there is deficient monsoon, farmers look to sell their gold to generate funds.

Importance of Checking Gold Rate in Indore

It is important for users to stay updated about the rate of gold, as even a small variation can cause a significant loss. The gold rates today are very high when compared to that of a decade ago. Prior to making a purchase, people are advised to compare the different rates charged by jewellers in the city. The bigger ones tend to charge higher in making charges.

How to Invest in Gold in Indore?

If one wants to buy physical gold, all that the individual would have to do is go to a jewellery store and purchase gold jewellery and/or gold coins. Other than physical gold, users can buy gold ETFs. To buy gold ETFs, the individual can ask his or her broker to buy the same after opening a broking and trading account. Sovereign gold bonds are also listed, and people can buy them in the same manner as listed shares are bought.

Things to Remember Before Purchasing Gold in Indore

A few factors to keep in mind before buying physical gold are as follows:

  • Level of purity: The purity of gold is measured and termed in Karats. The purest form available is 24 Karat (KT). However, this is too soft for making ornaments. Jewellers mostly use 14, 18 or 22 karat gold in their jewellery. The level of purity has a bearing on the rate of gold.

  • Making charges: An important element that has an impact on the gold rate is its making charges. Some jewellers fix it as a flat making charge per gram (of gold) or as a percentage of the gold value.

  • Hallmarking: It is advisable to check for BIS hallmark while buying physical gold. The Bureau of Indian Standards (BIS) has been set up by the government for ensuring that people do not get cheated while buying gold.

4 Months Gold Rate in Indore

Trend of Gold Rate in Indore for September 2019

TypePeriodRs./10gm
Lowest gold price on15 Sep 2019Rs. 38,340
Highest gold price on07 Sep 2019Rs. 40,189
Gold price on01 Sep 2019Rs. 39,565

Source: GoldPriceIndia

Trend of Gold Rate in Tirunelveli for August 2019

TypePeriodRs./10gm
Lowest gold price on02 Aug 2019Rs. 35,506
Highest gold price on28 Aug 2019Rs. 40,176
Gold price on01 Aug 2019Rs. 35,791
Gold price on31 Aug 2019Rs. 39,582

Source: GoldPriceIndia

Trend of Gold Rate in Tirunelveli for July 2019

TypePeriodRs./10gm
Lowest gold price on03 Jul 2019Rs. 34,353
Highest gold price on26 Jul 2019Rs. 36,148
Gold price on01 Jul 2019Rs. 34,931
Gold price on31 Jul 2019Rs. 35,790

Source: GoldPriceIndia

Trend of Gold Rate in Tirunelveli for June 2019

TypePeriodRs./10gm
Lowest gold price on29 Jun 2019Rs. 34,871
Highest gold price on28 Jun 2019Rs. 35,395
Gold price on01 Jun 2019Rs. 32,602
Gold price on30 Jun 2019Rs. 34,917

Source: GoldPriceIndia

How GST Impacts Gold Rate in Indore

The tax on gold, before the implementation of GST, was 1% service tax and 1% VAT. The GST now applicable on gold is 3%. There is also a tax of 5% levied on making charge.

What is BIS Hallmarked Gold?

A gold jewellery that has been hallmarked by the Bureau of Indian Standards will have the BIS logo. This logo is evidence that the purity of the gold has been verified at one of the bureau’s laboratories. However, it is important to note that the BIS hallmarking is not mandatory. Some offer their in-house hallmarking of jewellery. Before buying gold ornaments, it is recommended to check with the jewellers whether they offer BIS hallmarked ornaments.

How to Buy Gold after Checking Gold Price in Indore?

The different ways by which a user can buy gold include:

  • Purchasing gold ornaments from a jewellery shop
  • Investing in gold bars and coins offered by jewellers, banks, NBFCs etc.
  • Buying Gold ETFs after opening demat and trading accounts
  • Availing government-issued Sovereign Gold Bonds
  • Investing in companies involved in the mining, extracting and marketing of gold

Conclusion

Based on the points mentioned above, it can be concluded that gold is a lucrative investment option. Over a period of time, its returns shall be in line with the rate of inflation. Another reason why people prefer gold is because it is negatively correlated to equity investments. Gold forms an essential component of a diversified (investment) portfolio.

FAQ's On Gold Rate in Indore

What is per gram Gold Rate in Indore?

According to the GoldPriceIndia website, the price for 24 karat gold is Rs. 3,840 per 1 gram.

What is 10 gram Gold Rate in Indore?

According to the GoldPriceIndia website, the price for 24 karat gold is Rs. 38,396 per 10 grams.

What is 100 grams Gold Rate in Indore?

According to the GoldPriceIndia website, the price for 24 karat gold is Rs. 3,83,960 per 100 grams.