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Gold rate in Karnataka

Karnataka is a well-known state in the South-Western region of India. Apart from being famous for housing one of the largest gold mines of the country, Kolar mines, the state is also known for exhibiting deep love towards gold. Karnataka also houses a host of jewellers that are well known for molding the yellow metal into the latest trends of jewellery. For years now, people in Karnataka consider gold as a sacred metal and purchase it in heavy quantities during the time of weddings and festivals. People in Karnataka mainly purchase gold during the time of festivals such as Akshay Tritiya, Dusshera, Diwali and others. Buying gold has become an integral part of Karnataka’s culture due to which the gold rates here change on a daily basis. The heavy demand for gold in Karnataka has upsurged its price, eventually leading to a constant change in gold rates. The changing gold rates do not deter people from purchasing the yellow metal. Gold rates in Karnataka change daily and are determined on per gram basis for the 24K and 22K gold purity.

Factors That Determine Gold Rate in Karnataka

Gold in Karnataka is primarily bought as an investment tool. However, it is imperative to know about the factors that influence the everyday changing gold rates before as they largely affect the price you pay for buying the yellow metal.

  • Fluctuations in the dollar: Gold rate today in Karnataka witnesses an instant change if there is any fluctuation in the rate of the dollar. A strong dollar leads to a decrease in gold rate in Karnataka, while a weak dollar does the exact opposite. This happens because people look to invest in a commodity that appreciates and not in a depreciating asset. So, when the rate of dollar depreciates, people start investing in gold due to which its rate too rises.
  • Cost of production: If the gold mining companies in Karnataka increase its production costs, the gold rates too are subjected to change.
  • Equation of dollar and rupees: To put it simply, gold in Karnataka is purchased from other countries in dollars. So, if the value of the dollar increases against rupees, gold rate increases as banks and jewellers have to pay as per the existing dollar rate. Whereas, if the rupee becomes strong against the dollar, the gold rate decreases.
  • Heavy demand: If there is no stable supply of gold in comparison to its demand, then the gold rates in Karnataka witness a rise. Usually, gold is high in demand at the time of festivals due to which gold rates are on a rise during such time.
  • Interest rates offered by banks: If banks in Karnataka offer low-interest rates on various savings schemes, then people look to invest in gold which offers great returns.
  • Inflation: During the time of inflation, people’s purchasing power becomes low. Hence, when it comes to making an investment during such times, people invest in gold as it acts as a shield against inflation.

How is gold rate today determined in Karnataka?

Gold rate in Karnataka is determined by the Karnataka State Jewellers Federation that consists of members of gold jewellers and dealers. While determining the gold rate today in Karnataka, the members of the association decide as per the ‘buying’ and ‘selling’ done on the earlier day. Other factors such as taxes, import costs, etc. are also taken into consideration. The members of the gold association are watchful of the above factors mentioned and determine the gold rate today accordingly.

How to Invest in Gold in Karnataka?

People in Karnataka are very much involved in the process of buying and selling gold due to which there are an array of investment avenues one can invest in.

Here is how gold investment can be made in Karnataka

  • Gold coins and bars: In Karnataka, gold coins are considered to be the ideal gift options as they can be purchased in different sizes and purity levels. One can even purchase coins and bars from banks in the state. However, banks do not accept the coins and bars back.
  • Gold ornaments: People in Karnataka mostly buy gold in the form of ornaments as it makes for a good fashion accessory as well. It is important to know that investment in gold ornaments is not a wise choice as it involves making charges that are excluded at the time of selling the jewellery.
  • Gold mutual fund: Investment in a gold mutual fund can be done just like investing in market-related mutual funds. A gold mutual fund invests in other gold-related funds just like a pure investment mutual fund. It is not mandatory for an individual to hold a demat account to invest in a gold mutual fund.

Things to Know Before Buying Gold in Karnataka

To ensure that your gold purchase is not ridden with any discrepancies, here are few things that you need to check before buying gold in Karnataka.

  • Cost per gram: Gold rate in Karnataka changes daily which affects the per gram cost of the yellow metal. So before you make a purchase, it is important that you check the cost per gram prevailing on the day. Doing this gives you a fair idea of how much you have to shell out to buy gold in 24K, 22K and other purity levels.
  • Gold purity: Checking the gold purity helps you know about the exact gold content in the gold item you are looking to purchase. Here is how gold purity is determined.
    • 24 K = 99.9% Pure
    • 22 K = 91.3% Pure
    • 18 K = 75% Pure
    • 14 K = 58.5% Pure
    • 10 K = 41.7% Pure
  • BISmark: You should always avoid buying gold that does not feature a BIS mark. A BIS mark embodied on the clasp or back of the gold item determines that the gold is of pure quality and standards.
  • Making charge: Though investing in gold jewellery would look like a good option, but it involves the making charge which lowers its actual value. Making charge is basically the labour charged involved in making of the jewellery. This cost is not given back at the time of selling the jewellery but is included in the final cost while buying.
  • Buyback: Check if your jeweller gives you a buyback option as it allows you to buy new jewellery in exchange for the new one at the same cost.

FAQs on Gold Rate in Karnataka

What is gold rate today in Karnataka?

Gold rate today in Karnataka changes on a daily basis. So, you can check for the gold rate prevailing in Karnataka today online or offline.

What is the 22K gold rate in Karnataka?

You can check 22K gold rate in Karnataka online or offline at a jewellery store near you.

What is the GST on gold in Karnataka?

GST on gold in Karnataka is 3%

Can I buy gold online in Karnataka?

Yes, you can purchase gold online in Karnataka.

From where can I buy hallmark gold jewellery in Karnataka?

You can buy hallmark gold jewellery in Karnataka from reputed jewellers such as Abharan Jewellers, Bhima Jewellers, Navrathan Jewellers and others.