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Gold Rate in Madurai

Madurai is an ancient city in the Indian State of Tamil Nadu. It is said that majority of Tamil scholars in India resided in Madurai. The city is touted to be the third largest city in Tamil Nadu and the 25th most populated city in India. For people in Madurai, it is common to invest most of their wealth in gold as it seems to be one of the stable forms of investment. There are various reasons due to which people in Madurai invest in gold to meet their financial requirements; it could be due to cultural demand, hedge inflation, portfolio diversification, avoid investment in risky assets or any others. Due to this ever-growing demand for the precious metal, the demand for gold in Madurai has increased due to which the gold rates have witnessed a steady incline. Gold rates in Madurai undergo a change on a daily basis, twice in a day, depending on the demand for gold and other factors that heavily influence it. To buy gold in Madurai, one needs to check gold rates today and then accordingly make a choice to invest in the metal.

Factors Affecting 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.

Who Determines Gold Rate in Madurai

There is no such kingmaker in Madurai that has a say in gold rates in Madurai. Therefore, the gold rate today in Madurai is determined by the Madurai Jewellers and Bullion Merchants Association. The Bullion association consists of unit manufacturers, wholesalers, retailers and exporters from all over Madurai who consider the ‘buy’ and ‘sell’ quotes and other factors to determine the price of gold for the given day. The association has a website www.mjbma.com that gives information about gold and silver rates today in Madurai.

Various Gold Investment Options in Madurai

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.

Things to Know before Investing in Gold in Madurai

  • Know the purity: The purity of gold in Madurai is denoted in Karas with specifications being the following:
    • 24K- 99.9% (999)
    • 22K-91.7% (917)
    • 20K-83.3% (833)
    • 18K-75% (750)
    • 14K-58.3% (583)
    • 10K-41.7% (417)

Never purchase a gold item without knowing its purity as it determines the exact content of real gold used in it. Also, gold purity is always hallmarked on the gold item that you are buying.

  • Making charges: Making charge is usually the labour charge that is involved in the creation of the gold item. Making charge is levied on jewellery items and is included in the final price of the jewellery purchase. This charge varies from jeweller to jeweller, so it is always a good idea to ask your jeweller for a fixed making charge and then proceed ahead with the purchase.
  • Check the weight: If you are looking to buy gold in Madurai, then check for its weight. If the jewellery item that you are buying consists of gemstones or diamonds, then the weight of those will also be included in the overall weight of the jewellery which will have an impact on the cost of your jewellery.
  • Time of purchase: People in Madurai tend to buy gold during the season of festivals or weddings. So, if you are looking to purchase gold, then buy it during the offseason.
  • Buyback: Check if the gold jewellers in Madurai offer you with a buyback option which means that they let you exchange your old jewellery for buying a new one. Having this benefit gives you the option to try various designs while also keeping the value of your gold intact.

FAQs on Gold Rate in Madurai

What is the GST on gold in Madurai?

GST of 3% is levied on the purchase of gold in Madurai.

Which are the well-known gold jewellers in Madurai?

Well-known gold jewellers in Madurai are Bhima jewellers, Lalithaa jewellers and Sri Vasavi jewellers.

Is gold rate in Madurai the same in all the areas of the city?

Yes, the gold rate in Madurai is the same in all the areas of the city.

Can I buy gold coins from banks in Madurai?

Yes, it is always a good idea to purchase gold coins from banks in Madurai as they provide you with the authenticity certificate.