Gold Rate in Madurai

To buy gold in Madurai, it’s necessary for people to understand the factors that affect the gold price in the city.- Inflation: Gold holds real value in comparison to currency during the time of inflation. So when inflation in Madurai witnesses an upward trend, the gold rates increase as people buy gold to use it as a weapon against inflation.- Interest Rates offered by Banks: When banks offer attractive interest rates, gold rates dip as people prefer investing in the banks. Similarly, when banks offer less interest on FDs, then gold rates witness an increase as people opt to make gold investments.Fluctuations in currency: Gold and dollar share an inverse relationship. If the US dollar weakens, the gold rates in India fall, similarly, if the US dollar strengthens, the gold rates in Madurai increase. This is because gold trading is done in US dollars and any fluctuations in the currency lead to a change in the price of gold in Madurai.- Rupee-dollar equation: Gold trading in the international market is done in US dollar. Domestic trading of gold in Madurai is done in Indian rupees. Hence, if the US dollar becomes strong against the Indian rupees, gold rates in Madurai go sky high. Similarly, if the Indian rupees becomes strong against the US dollar, gold rates decline.- International gold price: Any increase or decrease in the gold rates in the international market affects the gold rates in Madurai. If the gold rate increase in the international market, the gold rate in Madurai too hikes. Factors such as global consumption of gold, geopolitical relations, changes in US dollar and others lead to a change in gold rate internationally.- Import duty: Gold in Madurai is not produced but imported from other countries. Buying yellow metal in Madurai has led to gold becoming dearer in the city.

People in Madurai are crazy for gold, which has led to the introduction of several gold investment avenues that promise to give high returns help an investor build a stable financial portfolio. It is important to know about various gold investment options one can avail in Madurai to make an informed decision.

• Gold jewellery: One of the traditional ways of investing in gold is purchasing jewellery. However, this investment type has a disadvantage in the form of ‘making charges’ that are not included in the time of selling back the jewellery.

• Gold coins and bars: Investment in gold coins and bars in Madurai is considered a better option than investing in jewellery. Gold coins and bars come in different weights and purity and one can purchase it depending on his budget and preference. Coins and bars can be used for gifting purpose or as a savings tool. One can make an investment in gold coins and bars by purchasing it from a jeweller or the bank.

• Gold Funds: Investing in gold funds is one of the modern ways of investment. Gold fund of funds invests in various other gold-related funds that is just like any other mutual fund scheme.

• Gold ETFs: Gold ETF stands for Exchange Traded Fund. Under this gold investment option, gold is traded as an individual stock with its units listed at the stock exchange. To invest in Gold ETFs, it is mandatory for investors to hold a Demat and trading account.