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Gold Rate in Kerala

Kerala is a well-known tourist destination in India. Kerala is not only famous for its eco-tourism initiatives and beautiful backwaters, but also for its love for gold. For years now, Kerala is considered to be a great market for gold investors and dealers. As per a leading business journal commodity online, Kerala contributes to over 20% of India’s gold consumption which makes it one of the top consumers of gold in the country. As per a Times of India Report published in 2014, 3 gold loan companies together hold around 200 tonnes of the yellow metal in the form of jewellery which makes Kerala one of the most important gold markets not only in India, but also at a global level. Gold rate in Kerala changes every day depending on the international market as well as its demand. One can easily check for the gold rate in Kerala online through a trustworthy website.

Factors That Determine Gold Rate in Kerala

Being a state that is heavily involved in the business of Gold, the ever-changing gold rates in Kerala is determined on the basis of the below factors:

  • Inflation: As the inflation trends upwards, the gold rate in Kerala too witnesses a price hike.
  • Low interest on FDs: When the interest rates on FDs decrease, people start investing in gold due to which there is a high demand for it, which eventually leads to an increase in the price of the gold.
  • Time of purchase: People in Kerala are obsessed with gold, and during the time of festivals and wedding, the demand for gold increases, thus leading to an increase in the gold rate. Gold rate in Kerala rises during the festival of Onam that is celebrated with much fanfare. There is a tremendous spike in gold rate during the time of Onam as elders greet children with gold coins, women adorn themselves in gold jewellery and also invest in it. Also, it has been noticed that celebration of any festival or ceremony in Kerala goes hand in hand with the purchase of gold.
  • Currency: Gold rate in Kerala largely depends on the international market. As the US dollar strengthens against the Indian rupees, the gold rate increases, whereas, when the US dollar weakens against the Indian rupee, the gold rate decreases. This is because India purchases gold from the US. So any change in the dollar dynamics leads to a direct change in the gold rate in Kerala.

How is Gold Rate Today in Kerala Determined?

Gold rate today in Kerala is determined on the basis of numerous factors with the most important being the global price. As the global gold price rises, the gold rate today in Kerala also rises. For over years now, the dollar has been consistently moving high due to which the gold rate in Kerala is rising high as the US dollar has now become stronger than the Indian rupee. Gold rate today in Kerala is determined by All Kerala Gold and Silver Association, a group of gold merchants that consider the above factors to arrive at a gold rate for a particular day. One can also check for the gold rate today in Kerala at various jewellery stores such as Joyalukkas, Jos Jewellers, Malabar Gold and others.

How to invest in Gold in Kerala?

Gold, the yellow metal is considered to be a great investment option in Kerala. The precious metal is considered to be auspicious for marking the celebration of various festivals and ceremonies. Much like equity, bonds, shares and mutual funds, gold too is considered a great investment option. Investment in gold in Kerala can be made in the below-mentioned avenues:

  • Gold jewellery: Investing in gold jewellery is one of the most popular ways to make a good investment. It is common for people to buy gold in Kerala, no matter what the rate is. The popularity of gold jewellery and its fashion factor makes gold jewellery investment a preferred investment option in Kerala. However, it is important to note that the gold rate for gold jewellery in Kerala is inclusive of the making charges. Hence, when an individual sells gold, the making charges would be excluded while handing him the final amount.
  • Gold coins, biscuits and bars: Gold coins, biscuits and bars are one of the popular gold investment options that can accommodate any budget type. Gold coins, biscuits and bars can be purchased from banks or a jeweller. However, these gold items cannot be sold back to the bank.
  • Gold ETFs: With the advent of technology, gold can now be stored in an electronic form through Gold ETFs. Gold investment can be made in Gold ETFs that is an individual stock that can be traded in the stock market. Under this type of investment, gold is invested as commodity ETF with its units listed on the stock exchange. Gold ETFs can be easily bought and sold online and also offer certain tax benefits after a year.
  • Gold Mutual funds: Investment in gold can be made by opting to invest in gold mutual funds. One can invest in the gold mutual fund in the form of FOF i.e. fund of fund that invests in a host of other gold-related funds or you can simply opt for gold mutual fund listed on the global stock exchange.

Things to Check before Buying Gold in Kerala

Buying gold isn’t a rocket science that requires you to follow certain hard and fast rules. However, to make sure you have not been duped and have made a pure purchase, here are a few things that you should check while buying gold in Kerala.

  • Look at the gold rates: Before you step into the market to buy gold in Kerala, check for the gold rate prevailing on that particular date. You can also conduct a simple search online by typing ‘gold rate in Kerala’ on Google and can check the gold rate. Gold rates change every day so it is important that you observe the market trend to buy gold at the lowest price.
  • Check for the purity of gold: To ensure that the gold you are buying is pure and doesn’t contain any other dubious metal, you should be aware of the purity categories that help you make the right choice. Gold is categorized in karats that define the ratio of gold mixed with any other alloy. To curate gold in the form of jewellery, it is imperative to mix it with an alloy as gold is very soft. Below is the fineness that helps you determine the purity of gold content in a gold item:
    • 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: Gold that is not certified with a BIS mark may not be original and hence, you should avoid purchasing gold that is not certified.
  • Buyback: While buying gold in Kerala, check if the jewellery showroom where you are buying the jewellery from, offers you a buyback option. Few jewellery brands allow customers to sell old gold and buy a new one with the buyback option.
  • Ask for an invoice: When you make an investment in jewellery, ask the jeweller or the bank to provide you with an invoice that lists the details of the purchase. This will help you in case of discrepancies and will also make the selling process easy.

FAQs on Gold Rate in Kerala

What is the GST impact on gold rate today in Kerala?

Goods and Service Tax was implemented by the Government of India in 2017. Before the implementation of GST, people in Kerala used to pay 5% VAT on gold which has come down to 3%.

When do people in Kerala invest the most in Gold?

People in invest in Gold in Kerala majorly during Onam.

What are the facts about gold jewellery in Kerala?

People in Kerala mostly buy gold jewellery and the gold jewellery market in the city is of around 20 crores. People in Kerala mostly opt for 24K and 22K gold jewellery. Kerala has over 5000 jewellers and over 40,000 gold jewellery artisans. Kerala jewellers sell a range of traditional and modern jewellery.

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

Gold rate today in Kerala is different from other cities of India due to taxes prevailing in the city, transportation cost and volume of demand.

What is 24-carat gold rate in Kerala today?

You can check the 24-carat gold rate in Kerala today online or at the jewellery store near you.

What is 8-gram gold price in Kerala?

8-gram gold price depends on the gold rate prevailing for the day in Kerala.