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Gold Rate in Mumbai

As an investment, gold is seen as one of the best hedges against inflation. It can be owned physically i.e. in the form of jewellery, gold bars and coins, or in paper, like gold exchange traded funds and sovereign gold bonds. The price of gold in India varies across cities on account of local market factors such as its demand and supply, state government taxes and transportation charges (of physical gold). This article sheds light on how lucrative gold investments are in Mumbai and its rates over the recent months.

Factors Affecting Gold Rate in Mumbai

A number of factors have an impact on the gold rate in Mumbai. Here is a look at a few:

  • Inflation: During times of rise in inflation, the value of currency falls. This prompts more people to hold money in the form of gold. When inflation remains high over a longer duration, gold serves a tool to hedge against inflationary conditions. This results in gold prices moving up during inflationary period.
  • Rupee-dollar equation: Although the rupee-dollar equation does not affect global gold prices, it plays a role in Indian gold rates. Given that gold is largely imported, if the rupee weakens against the dollar, gold prices will likely appreciate in rupee terms. A depreciating rupee may hurt the demand of gold in the nation. It must, however, be noted that a change in rupee-dollar rates does not affect gold rates denominated in dollars.
  • Gold and interest rates: Under normal circumstances, gold and interest rates have a negative relationship, some industry experts have suggested. Rising yield denotes an expectation of strong economy. This situation gives rise to inflation, and gold is used as a hedge against inflation. When rates increase, investors move to fixed-income investments that yield a fixed return, unlike gold, which does not fetch any such return. Demand therefore takes a back seat, with prices staying flat.

How to Invest in Gold in Mumbai?

If an individual wants to buy physical gold, all he or she has to do is go to the nearest jewellery shop and purchase gold jewellery and/or gold coins. It is advisable to opt for coins since jewellery has making costs, which the individual will not be able to recover when selling. Other than physical gold, one has the option of buying gold ETFs. They are funds that mainly invest in gold, and can be purchased and sold on the exchange. To buy gold ETFs, one simply needs to ask the broker to buy after opening a broking and trading account. Sovereign gold bonds are also listed, and individuals can buy them in the same manner as listed shares are bought.

Things to Remember Before Purchasing Gold in Mumbai

A few factors to keep in mind before buying physical gold are as follows:

  • Level of purity - Gold is available in different purity levels, and this can be measured on the basis of Karat and fineness. The level of purity has a bearing on the price of gold.
  • Hallmarking - When one is buying physical gold, it is important to check for hallmarking. Hallmarking is mandatory on gold ornaments and coins. The Bureau of Indian Standards has been set up by the government to ensure that individuals do not get cheated when buying gold.
  • Making charges - Another important element that impacts the price of gold is its making charges. Some jewellers determine making charge at a fixed rate per gram of gold, while others may charge it on the basis of a certain percentage of the total jewellery weight.

6 Months Gold Rate in Mumbai

Trend of Gold Rate in Mumbai for July 2019

Gold Rates22 Carat24 Carat
1st July 2019Rs. 33,200Rs. 34,200
31st July 2019Rs. 34,050Rs. 35,050
Highest Price on JulyRs. 34,400 on July 19 Rs. 35,400 on July 19
Lowest Price on JulyRs.32,700 on July 2 Rs.33,700 on July 2
Overall PerformanceRisingRising
Percentage Change+2.56%+2.49%

Source: Good Returns

Trend of Gold Rate in Mumbai for June 2019

Gold Rates22 Carat24 Carat
1st June rateRs. 31,450Rs. 32,450
30th June rateRs. 33,200Rs. 34,200
Highest rateRs. 33,650 on June 25Rs. 34,650 on June 25
Lowest rateRs.31,450 on June 1Rs.32,450 on June 1
Overall performanceRisingRising
% change+5.56%+5.39%

Trend of Gold Rate in Mumbai for May 2019

Gold Rates22 Carat24 Carat
1st May rateRs. 30,700Rs. 31,850
31st May rateRs. 31,000Rs. 32,000
Highest rateRs. 31,600 on May 15 Rs. 32,600 on May 15
Lowest rateRs. 30,600 on May 3 Rs. 31,750 on May 3
Overall performanceRisingRising
% change+0.98%+0.47%

Trend of Gold Rate in Mumbai for April 2019

Gold Rates22 Carat24 Carat
1st April rateRs. 31,110Rs. 32,650
30th April rateRs. 31,250Rs. 32,250
Highest rateRs. 31,400 on April 1Rs. 32,650 on April 1
Lowest rateRs. 30,800 on April 12Rs. 31,800 on April 12
Overall performanceRisingFalling
% change+0.45%-1.23%

Trend of Gold Rate in Mumbai for March 2019

Gold Rates22 Carat24 Carat
1st March rateRs. 32,750Rs. 35,026
31st March rateRs. 31,100Rs.32,640
Highest rateRs. 32,750 on March 1Rs.35,026 on March 1
Lowest rateRs. 31,100 on March 18Rs. 32,640 on March 18
Overall performanceFallingFalling
% change-5.04%-6.81%

Trend of Gold Rate in Mumbai for February 2019

Gold Rates22 Carat24 Carat
1st February rateRs. 32,490Rs. 34,090
28th February rateRs. 32,600Rs. 33,640
Highest rateRs. 33,100 on February 19Rs. 35,480 on February 19
Lowest rateRs. 32,360 on February 7Rs. 33,640 on February 7
Overall performanceRisingFalling
% change+0.34%-1.32%

What is the Importance of Checking Gold Rate in Mumbai

Checking the price of gold is vital because even a minute variation in gold rate can result in a major loss. The prices of gold today are very high as compared to that of a decade ago. Individuals are advised to compare the current gold rate of one jeweller with that of the others in the city. The bigger and well-established jewellers are likely to charge higher in making charges for gold purchase. If one finds that the making charges of gold is significantly high in one jewellery store, it is recommended to evaluate the rate charged by goldsmiths or jewellers. In doing so, the individual might be able to find one whose rate fits his or her pocket.

What is BIS Hallmarked Gold?

Gold jewelleries hallmarked by the Bureau of Indian Standards shall bear the BIS logo. This serves as evidence that the purity of the gold has been verified in one of the bureau’s licensed laboratories. It is however important to note that BIS hallmarking is not mandatory - not all jewellers offer hallmarked BIS jewellery. Some offer their in-house hallmarking of jewellery which is not verified by the national standards body of India. Prior to buying gold jewellery, it is essential to check with the jewellers whether or not they offer BIS hallmarked ornaments.

How to Buy Gold after Checking Gold Price in Mumbai?

The different ways by which a user can buy gold include:

  • Purchasing gold ornaments from a jewellery store
  • Investing in gold coins and bars offered by jewellers, banks, non-banking finance companies and e-commerce websites
  • Buying Gold ETFs from the stock exchange after opening demat and trading accounts
  • Availing Sovereign Gold Bonds issued by the government
  • Investing in companies involved in the mining, extracting and marketing of gold

Conclusion

Investing in gold is worthwhile because it acts as a hedge against inflation. Overtime, the returns would be in line with the rate of inflation. The second reason why financial experts recommend this route of investing is due to the fact that gold is negatively correlated to equity investments. From the year 2007, it was observed that the equity markets did not perform too well, whereas gold did. Thus, including gold in one’s portfolio mix can help reduce the overall volatility of the individual’s portfolio

FAQ's On Gold Rate in Mumbai

What is per gram Gold Rate in Mumbai?

According to the Gold Price India website, the gold price for 24 karat gold is Rs. 3,872 per 1 gram.

What is 10 gram Gold Rate in Mumbai?

According to the Gold Price India website, the gold price for 24 karat gold is Rs. 38,718 per 10 grams.

What is 100 grams Gold Rate in Mumbai?

According to the Gold Price India website, the gold price for 24 karat gold is Rs. 3,87,180 per 100 grams.

What is 1 kg Gold Rate in Mumbai?

According to the Gold Price India website, the gold price for 24 karat gold is Rs. 38,71,800 per kilogram.