Gold rate in Jaipur

Jaipur is home to over 3 million people who purchase gold on a frequent basis. However, due to the fluctuating gold rates, at times, the gold price in Jaipur is low, while at times, it is very high. So to help you understand why the gold rates in Jaipur fluctuate, here are a few factors that you should know about.

• Rupee VS Dollar: Gold is imported in Jaipur and is purchased in dollars from the US and sold in Indian Rupees in the domestic markets. So if the rupee strengthens against dollar, gold rate in Jaipur decreases, similarly, if the rupee weakens against dollar, gold rate in Jaipur decreases.

• Dollar value: The value of the dollar has a major impact on gold rate today in Jaipur. This is because gold and dollar share an inverse relationship. If the dollar weakens, gold rate in Jaipur increases and if the dollar strengthens gold rate in the city decreases. This happens because a weak dollar increases the value of other commodities including gold. Similarly, if the value of dollar increases, then people start investing in it as it is an appreciating commodity.

• Supply: Any imbalance in the supply of gold in Jaipur leads to a change in the gold price prevailing in Jaipur.

• Cost of import: Gold is imported in Jaipur. So any change in the cost of import duty leads to a change in gold rate in the city.

• Interest rates offered by banks: For over years, people considered FDs to be the safest forms of investment. However, now, people want more, so investment in gold has become a preferred option.

• Rate of inflation: Ideally, gold is purchased as a hedge against inflation. So, when inflation witnesses an upward trend, demand for gold increases, which eventually lead to an increase in the gold rate.

In the past, people of Jaipur used to only invest in gold ornaments and coins. However, with the advent of technology, people have now started investing in Gold ETFs and mutual funds.

• Gold ornaments: This is one of the highly preferred gold investment options in Jaipur as it serves both the purpose of investment as well as fashion accessory.

• Gold ETFs: Gold ETFs are gold exchange traded funds that are listed on the stock exchange just like other commodities. Through gold ETFs, gold can be purchased in an electronic form and it is mandatory for an individual to hold a Demat account to invest under this investment avenue.

• Gold Fund of Funds: Investing in Gold fund of funds is just like investing in mutual fund that invests in various gold-related funds. To invest in Gold fund of fund, it is not mandatory for an individual to hold a Demat account.

• Gold coins and bars: This is one of the traditional type of investment options which can be purchased from banks as well as jewelers. Banks provide certificate, while few jewelers don’t. Also, coins and bars purchased from banks cannot be returned.