Gold Rate in Lucknow

Widely known as the city of Nawabs, Lucknow has always held a rich tradition of investing in gold. Gold in Lucknow is primarily purchased in the form of jewellery and is accounted not only as a fashion accessory but also as an investment. Gold serves as a safe haven for investors in Lucknow as it gives stable long-term returns. Gold in Lucknow is purchased after checking the gold rate today. This is because gold rates in Lucknow change on a daily basis, which affects the gold per gram rate in the city. One can check gold rate today in Lucknow online or at any jewellery store. Gold can be purchased online or offline in Lucknow depending on what suits the requirement of an individual.

Factors That Affect Gold Rate Today in Lucknow

Lucknow, the capital of Uttar Pradesh is popularly known as a ‘golden city’ housing over 4 million people that share an immense love for gold. While an increase in demand is largely known to affect every day changing gold rates in Lucknow, the below factors too have a role to play.

  • The rate of inflation: Since gold has historically proven to be a hedge against inflation, savvy investors invest in gold when the inflation trend rises upwards. When inflation increases, the demand for gold rises, which eventually leads to the gold rates going sky high.
  • Value of the US dollar: The value of the US dollar is inversely related to gold rate today in Lucknow. When the US dollar is strong, gold rates in India decrease and when the US dollar weakens, gold rates in India increase. This is because people have a tendency to invest in dollar when it is strong and when the dollar weakens, people start investing in gold coins and bullions.
  • Bank interest rates: Gold does not offer an individual steady interest rate like financial products offered by a bank. But when banks decrease the interest rates on FDs and other saving accounts, people rush to invest in gold as it offers good returns in the long term. Thus, lower interest rates equate towards great attraction for gold.
  • Supply vs Demand: Even a slight imbalance in the supply vs demand ratio of gold affects the gold prices in Lucknow. This is because gold is supplied in limited quantities in Lucknow and is high in demand during the times of festivals and weddings. Production costs: If gold mining companies in Uttar Pradesh increase gold production costs, then the gold rate today is largely affected.
  • Heavy import duty: Much like other cities of India, gold is an imported commodity in Lucknow. Hence, any change in the cost of import leads to an increase in the price of gold in Lucknow.

Various Gold Investment Options in Lucknow

Accumulating gold is one of the sought after methods of investment in Lucknow. As gold can easily be liquidated, it is considered to be one of the best commodities to invest in.

Here are various gold investment options in Lucknow one can avail:

  • Gold coins: Investing in gold coins is one of the most preferred options in Lucknow. Gold coins are mainly purchased for the purpose of gifting or as a savings tool. Gold coins are easy to purchase and can be bought from a jewellery showroom or banks. However, banks do not accept the gold coins back but provide a certificate of authenticity that guarantees the purity of gold content.
  • Gold jewellery and ornaments: Gold jewellery and ornaments is one of the largest forms in which gold is bought and sold in Lucknow. This is because gold is easily tradable, transportable and storable and is also purchased as a savings tool and for fashion purpose. However, purchase of gold jewellery and ornaments include making charges that are inclusive in the final price of the jewellery. So, if an individual tries to sell the jewellery, then he will only receive the amount on the basis of the actual gold content and less the making charges.
  • Gold bullion: Gold bullions are basically gold bars and coins purchased mainly for the purpose of investment. Gold bullions are available in various karats and grams and one can purchase it from banks or a jeweller.
  • Gold ETFs: Gold ETFs are exchange-traded funds that are traded just like any other commodity on the stock exchange. To invest in Gold ETFs, it is mandatory for an investor to hold a demat account.
  • Gold Mutual funds: Investing in gold mutual funds has become one of the modern gold investment options. A gold mutual fund is just like any other mutual fund that invests in various gold-related funds.

Things to Know Before Investing in Gold in Lucknow

Just because it is yellow doesn’t mean its pure gold. While buying gold in Lucknow, you need to keep the below things in mind to ensure that your gold purchase process is pure and transparent.

  • Check for the weight: Gold jewellery and other items are sold in Lucknow on the basis of its weight. Precious stones are often added to gold jewellery to enhance its beauty. However, this ends up making the jewellery heavier in the process which means, in the end, you will end up paying a high amount while purchasing the jewellery.
  • Sales: Gold purchase peak during the season of festivals and weddings, which leads to an increase in the gold rate. Cost per gram: While buying gold in Lucknow, always check on the cost per gram rate of the jewellery. Doing this gives you a fair idea about how much you will have to shell out to buy the desired jewellery item.
  • Buyback: Most jewellers in Lucknow offer buy-back option which means that one can exchange old jewellery to buy a new one. However, if your jeweller offers this option, then you need to know that the value of gold remains the same, no matter what is its price.
  • Gold purity: While buying gold in Lucknow, check for the purity. Checking the gold purity gives you the exact content of gold you are buying. Gold purity is defined in various karats i.e. 24K, 22K, 18K, 14K, 10K. 22K gold contains mix of other metals, while 24K gold contains pure gold content.
  • BIS hallmark: It is advisable to not buy a gold item that does not have a BIS hallmark. BIS hallmark denotes that the gold item you are buying is pure and is of high quality.

Who Determines Gold Rate in Lucknow?

Gold rate in Lucknow is determined by Indian Bullion and Jewellers Association Ltd., i.e. the IBJA that consist of various members who are jewellery dealers and sellers. The members of the IBJA take into account the ‘buy’ and ‘sell’ quotes provided by various jewellers on the basis of which the gold rate today is fixed in Lucknow. Other factors such as taxes on gold, import duty, international gold price are also taken into consideration while fixing gold price.

FAQs on Gold Rate in Lucknow

Is gold a good investment option in Lucknow?

In case of any uncertainty, gold has always proved to be a good investment option. The rising gold rates in Lucknow clearly prove that gold is an excellent prospect for investors.

Which are the well-known gold jewellers in Lucknow?

B.K Saraf Jewellers, Punjab Jewellers and Sons, T.P Jewellers and others are a few well-known jewellers in the city of Lucknow.

Does share market affect gold rate today in Lucknow?

Yes, share market does affect the gold rate today in Lucknow.

Is gold rate today high in Lucknow?

You can check the gold rate today at a jewellery store near you or online to analysis if the rate is high or low in comparison to previous day’s gold price.

Can a situation like demonetization affect the gold rate in Lucknow?

Yes, a situation like demonetization does affect the gold rate in Lucknow.

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